Gryphon Digital Mining Announces Letter to Shareholders
Gryphon Digital Mining (NASDAQ:GRYP) announced significant changes and restructuring initiatives in a shareholder letter from new CEO Steve Gutterman. The company completed a major debt restructuring with Anchorage, converting $13M of Bitcoin-based debt into equity at $1.10 per share and restructuring the remaining $5M with a 4.25% interest rate over three years. Key leadership changes include Gutterman's expansion from Director to CEO, Jimmy Vaiopoulos as Chairman, and Sim Salzman continuing as CFO. The company aims to focus on securing low-cost power deals, expanding Bitcoin mining operations, and moving into AI hosting and computing.
Gryphon Digital Mining (NASDAQ:GRYP) ha annunciato importanti cambiamenti e iniziative di ristrutturazione in una lettera agli azionisti del nuovo CEO Steve Gutterman. L'azienda ha completato una significativa ristrutturazione del debito con Anchorage, convertendo 13 milioni di dollari di debito basato su Bitcoin in azioni a 1,10 dollari per azione e ristrutturando i restanti 5 milioni di dollari con un tasso d'interesse del 4,25% su tre anni. Tra i principali cambiamenti nella leadership ci sono l'espansione di Gutterman da Direttore a CEO, Jimmy Vaiopoulos come Presidente e Sim Salzman che continua come CFO. L'azienda mira a concentrarsi sull'acquisizione di contratti per energia a basso costo, espandendo le operazioni di mining di Bitcoin e intraprendendo la hosting e il calcolo in intelligenza artificiale.
Gryphon Digital Mining (NASDAQ:GRYP) anunció cambios significativos e iniciativas de reestructuración en una carta a los accionistas del nuevo CEO Steve Gutterman. La compañía completó una importante reestructuración de deuda con Anchorage, convirtiendo 13 millones de dólares de deuda basada en Bitcoin en capital a 1,10 dólares por acción y reestructurando los 5 millones restantes con una tasa de interés del 4,25% a lo largo de tres años. Los cambios clave en el liderazgo incluyen la expansión de Gutterman de Director a CEO, Jimmy Vaiopoulos como Presidente y Sim Salzman continuando como CFO. La empresa tiene como objetivo centrarse en asegurar contratos de energía a bajo costo, expandir las operaciones de minería de Bitcoin y incursionar en el alojamiento y computación de inteligencia artificial.
그리폰 디지털 마이닝 (NASDAQ:GRYP)는 새로운 CEO인 스티브 가터맨의 주주 서신을 통해 중요한 변화와 구조조정 이니셔티브를 발표했습니다. 회사는 앵커리지를 통해 1,100달러에 주식으로 1,300만 달러의 비트코인 기반 부채를 전환하고 나머지 500만 달러는 3년 동안 4.25%의 이자율로 재구성하는 주요 부채 재구성을 완료했습니다. 핵심 리더십 변화로는 가터맨이 이사에서 CEO로 확대되고, 지미 바이오폴로스가 의장직을 맡으며, 심 살츠만이 CFO로 계속 활동하는 것입니다. 이 회사는 저비용 전력 거래 확보, 비트코인 채굴 작업 확장, 그리고 AI 호스팅 및 컴퓨팅으로의 진입에 집중할 계획입니다.
Gryphon Digital Mining (NASDAQ:GRYP) a annoncé d'importants changements et initiatives de restructuration dans une lettre aux actionnaires du nouveau CEO Steve Gutterman. L'entreprise a réalisé une restructuration de dette significative avec Anchorage, en convertissant 13 millions de dollars de dette basée sur Bitcoin en actions à 1,10 dollar par action et en restructurant les 5 millions restants avec un taux d'intérêt de 4,25% sur trois ans. Les changements clés dans la direction incluent l'expansion de Gutterman de Directeur à CEO, Jimmy Vaiopoulos en tant que Président, et Sim Salzman continuant en tant que CFO. L'entreprise vise à se concentrer sur la sécurisation d'accords d'énergie à faible coût, l'expansion des opérations de minage de Bitcoin et le passage à l'hébergement et au calcul en intelligence artificielle.
Gryphon Digital Mining (NASDAQ:GRYP) gab in einem Brief an die Aktionäre von CEO Steve Gutterman bedeutende Änderungen und Umstrukturierungsinitiativen bekannt. Das Unternehmen hat eine wesentliche Schuldenumstrukturierung mit Anchorage abgeschlossen, indem es 13 Millionen Dollar an Bitcoin-basierten Schulden zu 1,10 Dollar pro Aktie in Eigenkapital umwandelte und die verbleibenden 5 Millionen Dollar über drei Jahre mit einem Zinssatz von 4,25% umstrukturierte. Zu den wichtigsten Führungswechseln gehören Guttermans Aufstieg vom Direktor zum CEO, Jimmy Vaiopoulos als Vorsitzenden und Sim Salzman als CFO. Das Unternehmen strebt an, sich auf den Abschluss von Verträgen für kostengünstige Energie, den Ausbau der Bitcoin-Mining-Aktivitäten und den Einstieg in das Hosting und Computing im Bereich KI zu konzentrieren.
- Debt restructuring reduced $18M Bitcoin-based debt, with $13M converted to equity at 100% premium
- Remaining $5M debt restructured with favorable 3-year term at 4.25% interest rate
- Strengthened balance sheet through increased net equity
- Strategic partnership with Anchorage as largest shareholder and board member
- Significant outstanding debt of 304 BTC (~$18M) requiring restructuring
- Potential shareholder dilution from debt-to-equity conversion
Insights
This letter outlines several significant financial developments for Gryphon Digital Mining. The most impactful is the major debt restructuring with Anchorage, converting
The restructuring terms, particularly the premium pricing, signal strong institutional confidence. However, the company's current market cap of
The appointment of Steve Gutterman as CEO and retention of Sim Salzman as CFO strengthens the leadership team at a important juncture. The strategic alignment with Anchorage as both major shareholder and board member provides valuable institutional backing and potential access to future capital and partnerships.
The company's ambitious goal of reaching a billion-dollar valuation while minimizing dilution will require exceptional execution in securing low-cost power deals and scaling operations efficiently. The CEO's compensation structure, tied to share price and market cap growth, aligns management interests with shareholders, though the path to profitability needs more concrete details.
LAS VEGAS, NV / ACCESSWIRE / November 4, 2024 / Gryphon Digital Mining, Inc. (NASDAQ:GRYP) ("Gryphon" or the "Company") a bitcoin mining company that is focused on becoming the leader in low-cost, environmentally sustainable operations, announced today that Steve Gutterman, CEO, has issued a letter to shareholders:
Dear Valued Shareholders,
I am excited to address you as the new CEO of Gryphon Digital Mining.
Gryphon's New Chapter: Positioning for Success
The past few weeks have been a period of significant transition as we refocus the company on execution and delivering results. I want to share the current state of the business and our roadmap for the future, which we believe will drive substantial value. We expect this value to be reflected in attractive growth in our share price and market capitalization.
Leadership Enhancements to Accelerate Growth
First, we have made some key additions to strengthen our leadership team. In mid-September, my role was expanded from Director to also include CEO and Jimmy Vaiopoulos was added as Chairman. Shortly after that, Sim Salzman decided to continue as CFO. Sim had previously announced his retirement, and we are delighted to welcome him back. Collectively, we believe these moves accelerate our ability to complete accretive transactions and drive the business forward. We expect the expanded team's collective expertise will be instrumental as we pursue our vision of maximizing shareholder value.
Transformative Debt Restructuring Strengthens Financial Position
As you might also be aware, we recently completed a substantial debt restructuring with Anchorage, our lender. We owed Anchorage 304 BTC (approximately
converting approximately
$13 million of our outstanding Bitcoin-based debt into equity at$1.10 per share, representing an approximately100% premium to our then current market price; andadjusting the remaining
$5 million of debt for a three year term with interest only payments until maturity at a4.25% interest rate.
This restructuring has had a major positive impact on our balance sheet by increasing net equity.
Additionally, as part of this deal, Anchorage becomes our largest shareholder and has joined our board of directors, bringing valuable expertise and relationships. Moving forward, we expect Anchorage to be a key advisor as we build and grow.
Compelling Valuation with Significant Upside Potential
The terms of this debt restructuring showcase a sophisticated investor's belief in Gryphon's true value and future potential.
With our significantly healthier balance sheet, we believe we are now well-positioned to:
secure low-cost power deals;
expand our Bitcoin mining operations; and
move into AI hosting and computing
Relentless Focus on Maximizing Shareholder Value
Our ultimate vision is to maximize shareholder value. We have the team, assets, and strategy in place to get there. You can expect a steady drumbeat of execution from us in the coming months.
At the end of the day, our job is to drive market capitalization and share price. It may sound audacious, but our ultimate goal is to build a company that is worth many hundreds of millions or even over a billion dollars without unduly diluting price per share. In fact, I am so focused on that principle that a good portion of my performance bonuses are set to increases of share price and market capitalization. I'm confident in saying that we are all aligned on the desire to achieve those targets!
We look forward to proving ourselves through our actions and results. We appreciate your continued support as we enter this next chapter of growth.
Sincerely,
Steve Gutterman
CEO, Gryphon Digital Mining
About Gryphon Digital Mining
Gryphon Digital Mining, Inc. is an innovative venture in the bitcoin and AI space dedicated to helping bring digital assets to the market. With a talented leadership team coming from globally recognized brands, Gryphon has assembled thought leaders to improve digital asset network infrastructure. More information is available on https://gryphondigitalmining.com/.
Cautionary Statements Regarding Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). Statements that refer to projections, forecasts or other characterizations of future events or circumstances, including any underlying assumptions, are forward-looking statements. Forward-looking statements are typically identified by words such as "plan," "believe," "expect," "anticipate," "intend," "outlook," "estimate," "forecast," "project," "continue," "could," "may," "might," "possible," "potential," "predict," "should," "would" and other similar words and expressions, but the absence of these words does not mean that a statement is not forward-looking. Forward-looking statements may include, for example, statements about the future financial performance of the Company; changes in the Company's strategy, future operations, financial position, estimated revenues and losses, projected costs, prospects, the ability to raise additional funds, plans and objectives of management, share price, market valuation and acquisition activity.
The forward-looking statements are based on management's current expectations and assumptions about future events and financial results and are based on currently available information as to the outcome and timing of future events. The forward-looking statements speak only as of the date of this press release or as of the date they are made. Except as otherwise required by applicable law, Gryphon disclaims any duty to update any forward-looking statements, all of which are expressly qualified by the statements in this section, to reflect events or circumstances after the date of this press release. Gryphon cautions you that these forward-looking statements are subject to numerous risks and uncertainties, most of which are difficult to predict and many of which are beyond the control of Gryphon. In addition, Gryphon cautions you that the forward-looking statements contained in this press release are subject to the risks set forth in our filings with the Securities and Exchange Commission (the "SEC"), including the section titled "Risk Factors" in the Annual Report on Form 10-K filed with the SEC by Gryphon on April 1, 2024.
INVESTOR CONTACT:
Name: James Carbonara
Hayden IR
Phone: (646)-755-7412
Email: james@haydenir.com
SOURCE: Gryphon Digital Mining, Inc.
View the original press release on accesswire.com
FAQ
What are the terms of Gryphon Digital Mining's (GRYP) debt restructuring with Anchorage?
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