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Gryphon Digital Mining Signs Definitive Agreement for Natural Gas Assets, Securing Low-Cost Power of 100 MW, Expandable and Scalable to 1 GW

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Gryphon Digital Mining (NASDAQ:GRYP) has signed a definitive agreement with Erikson National Energy to acquire natural gas assets in Northeast British Columbia, Canada. The acquisition includes hundreds of natural gas wells containing over 5 trillion cubic feet of contingent resources and infrastructure with 140 mmcf/d capacity at 100% working interest.

The deal involves a CAD $2 million cash payment at closing plus additional obligations. The project is expected to initially power 100 MW of operations, potentially expandable to 1 GW, with projected energy costs below $0.03/KWH. The site features abundant natural gas access and will require engagement with regulatory bodies and First Nations, along with development of remediation plans.

The project includes green initiatives, such as proposed greenhouse construction for emissions reduction and year-round fresh produce supply to northern communities.

Gryphon Digital Mining (NASDAQ:GRYP) ha firmato un accordo definitivo con Erikson National Energy per acquisire asset di gas naturale nel Nordest della Columbia Britannica, Canada. L'acquisizione comprende centinaia di pozzi di gas naturale che contengono oltre 5 trilioni di piedi cubici di risorse contingenti e infrastrutture con una capacità di 140 mmcf/d a un interesse di lavoro del 100%.

L'accordo prevede un pagamento in contanti di 2 milioni di dollari canadesi al momento della conclusione, oltre ad ulteriori obblighi. Si prevede che il progetto inizialmente alimenterà 100 MW di operazioni, potenzialmente espandibili fino a 1 GW, con costi energetici previsti sotto i 0,03 $/KWH. Il sito presenta un accesso abbondante al gas naturale e richiederà l'interazione con le autorità regolatorie e le Prime Nazioni, insieme allo sviluppo di piani di bonifica.

Il progetto include iniziative verdi, come la proposta di costruzione di serre per la riduzione delle emissioni e la fornitura di prodotti freschi durante tutto l'anno alle comunità settentrionali.

Gryphon Digital Mining (NASDAQ:GRYP) ha firmado un acuerdo definitivo con Erikson National Energy para adquirir activos de gas natural en el noreste de Columbia Británica, Canadá. La adquisición incluye cientos de pozos de gas natural que contienen más de 5 billones de pies cúbicos de recursos contingentes e infraestructura con una capacidad de 140 mmcf/d a un interés de trabajo del 100%.

El acuerdo implica un pago en efectivo de 2 millones de dólares canadienses al cierre, además de obligaciones adicionales. Se espera que el proyecto inicialmente impulse operaciones de 100 MW, potencialmente expandibles a 1 GW, con costos energéticos proyectados por debajo de $0.03/KWH. El sitio cuenta con un acceso abundante al gas natural y requerirá la interacción con organismos reguladores y Primeras Naciones, junto con el desarrollo de planes de remediación.

El proyecto incluye iniciativas verdes, como la construcción propuesta de invernaderos para la reducción de emisiones y el suministro de productos frescos durante todo el año a las comunidades del norte.

그리폰 디지털 마이닝 (NASDAQ:GRYP)은 캐나다 브리티시컬럼비아 북동부의 천연가스 자산을 인수하기 위해 에리크슨 내셔널 에너지와 최종 계약을 체결했습니다. 이번 인수에는 5조 입방피트 이상의 잠재 자원이 포함된 수백 개의 천연가스 우물과 100% 작업 지분을 가진 140 mmcf/d 용량의 인프라가 포함됩니다.

계약은 마감 시 CAD 200만 달러의 현금 지급과 추가 의무가 포함됩니다. 이 프로젝트는 처음에 100MW의 운영을 전원 공급할 것으로 예상되며, 최대 1GW까지 확장될 수 있으며, 예상 에너지 비용은 $0.03/KWH 미만입니다. 이 사이트는 풍부한 천연가스 접근을 자랑하며 규제 기관 및 원주율족과의 협력, 복구 계획의 개발이 필요합니다.

이 프로젝트는 배출가스 감소를 위한 온실 건설 제안 및 북부 지역 사회에 연중 신선 농산물 공급과 같은 녹색 이니셔티브를 포함합니다.

Gryphon Digital Mining (NASDAQ:GRYP) a signé un accord définitif avec Erikson National Energy pour acquérir des actifs de gaz naturel dans le nord-est de la Colombie-Britannique, au Canada. L'acquisition comprend des centaines de puits de gaz naturel contenant plus de 5 trillions de pieds cubes de ressources contingentes et une infrastructure d'une capacité de 140 mmcf/d avec un intérêt de travail de 100 %.

L'accord prévoit un paiement en espèces de 2 millions de dollars canadiens à la clôture, ainsi que des obligations supplémentaires. Le projet devrait initialement alimenter 100 MW d'opérations, avec une possibilité d'expansion jusqu'à 1 GW, et des coûts énergétiques projetés en dessous de 0,03 $/KWH. Le site dispose d'un accès abondant au gaz naturel et nécessitera des interactions avec les organismes de réglementation et les Premières Nations, ainsi que le développement de plans de réhabilitation.

Le projet comprend des initiatives vertes, telles que la proposition de construction de serres pour la réduction des émissions et l'approvisionnement en produits frais toute l'année pour les communautés du nord.

Gryphon Digital Mining (NASDAQ:GRYP) hat eine verbindliche Vereinbarung mit Erikson National Energy unterzeichnet, um Erdgas-Assets im Nordosten von British Columbia, Kanada, zu erwerben. Die Übernahme umfasst Hunderte von Erdgasbohrungen mit mehr als 5 Billionen Kubikfuß von bedingten Ressourcen und Infrastruktur mit einer Kapazität von 140 mmcf/d bei 100% Betriebsinteresse.

Das Geschäft beinhaltet eine Barzahlung von 2 Millionen CAD bei Abschluss sowie weitere Verpflichtungen. Das Projekt soll ursprünglich 100 MW Betriebsleistung bereitstellen, die möglicherweise auf 1 GW ausgeweitet werden kann, mit prognostizierten Energiekosten von unter 0,03 $/KWH. Der Standort bietet einen reichlichen Zugang zu Erdgas und erfordert die Zusammenarbeit mit Regulierungsbehörden und First Nations sowie die Entwicklung von Sanierungsplänen.

Das Projekt umfasst grüne Initiativen, wie den Vorschlag zum Bau von Gewächshäusern zur Emissionsreduktion und die ganzjährige Versorgung nordischer Gemeinden mit frischen Produkten.

Positive
  • Acquisition of natural gas assets with 5+ Tcf of contingent resources
  • Low energy cost projection of less than $0.03/KWH
  • Initial 100 MW power generation capacity, expandable to 1 GW
  • Relatively low acquisition cost of CAD $2 million upfront
Negative
  • Transaction closing subject to regulatory and other approvals
  • Additional closing and ongoing obligations yet to be determined
  • Significant development work required before operations can begin
  • Requires engagement with multiple stakeholders including First Nations

Insights

The acquisition of natural gas assets in British Columbia marks a strategic vertical integration move for Gryphon. At $0.03/KWH, the power cost is significantly below market rates, positioning GRYP competitively in the energy-intensive bitcoin mining sector. The 5+ Tcf of contingent resources and 140 mmcf/d capacity represent substantial energy reserves, while the scalability from 100 MW to 1 GW offers remarkable growth potential. However, regulatory approvals, First Nations engagement and remediation plans present execution risks. The CAD $2 million initial investment appears modest relative to the asset's potential, though additional closing obligations could impact the final cost structure. The greenhouse initiative for emissions reduction demonstrates environmental consciousness, potentially easing regulatory approval.

This power acquisition could transform Gryphon's operational economics. The sub-$0.03/KWH power cost would place GRYP among the most competitive bitcoin miners globally, as electricity typically represents 70-80% of mining operational costs. The initial 100 MW capacity could support approximately 30,000 latest-generation miners, with potential expansion to 1 GW representing 10x growth capacity. The vertical integration into power generation mirrors successful strategies employed by industry leaders like Marathon and Riot, potentially reducing exposure to grid power price volatility. However, the project's timeline uncertainties and pending approvals warrant cautious optimism.

Pending acquisition is expected to deliver:

  • Natural gas asset in Canada with 5+ Tcf of contingent resource

  • Phase 1 power generation of 100 MW with expansion potential up to 1 GW

  • All in energy costs of less than $0.03/KWH

LAS VEGAS, NV / ACCESSWIRE / December 10, 2024 / Gryphon Digital Mining, Inc. (Nasdaq:GRYP) ("Gryphon" or the "Company"), an innovative venture in the bitcoin and AI space dedicated to helping bring digital assets to the market, announced today that it has entered into a definitive agreement with Erikson National Energy Inc. to acquire natural gas assets currently in insolvency located in Northeast British Columbia, Canada. The signing represents a crucial and first step for the Company in securing long-term competitive advantages in bitcoin mining and AI operations by acquiring significant power-generating assets.

The pending acquisition has hundreds of existing natural gas wells that contains over 5 trillion cubic feet (Tcf) of contingent natural gas resources and accompanying infrastructure which has capacity exceeding 140 mmcf/d at 100% working interest. The consideration for the acquisition is expected to be a CAD $2 million cash payment at closing plus other closing and ongoing obligations, which have yet to be determined.

The project is expected to have initial capability to power 100 MW of operations, with potential for expansion up to 1 GW under Gryphon's direction. The site possesses key characteristics that the Company believes makes it ideal for mining operations, with abundant access to natural gas. Once developed, the asset is expected to produce energy for less than $0.03 KWH.

"The signing of this definitive agreement represents a significant milestone in Gryphon's development, as we work toward integrating power generation assets into our operations," said Steve Gutterman, CEO of Gryphon Digital Mining. "With major tech companies seeing their electricity consumption rise by 81% between 2020 and 2023 due to AI and data centers, and projections showing an additional 50 GW of power needed by 2030 in the United States alone, natural gas has emerged as a uniquely positioned power source offering the critical combination of scalability, cost efficiency and sustainability. This opportunity exemplifies our scrappy and hands-on approach to building value. Getting it online will require engagement with regulatory bodies and First Nations, development of remediation plans and systematic execution. While others might seek turnkey solutions, we're focused on opportunities where we can unlock significant value through methodical development and operational excellence. Simply put, we are willing and able to put in the work."

Prior to equipment deployment, the Company will engage with local government officials and community stakeholders over the coming weeks to align with regional interests. The project roadmap also includes green initiatives, featuring proposed greenhouse construction to target emissions reduction, including aiming to provide year-round fresh produce to northern communities.

The Company notes that while it has entered into a definitive agreement, there can be no assurance that all necessary approvals will be obtained or that the transaction will close. Noted Gutterman, "While we are excited about signing the definitive agreement for these assets, work remains. Investors should understand that, while this represents a significant opportunity for us, the possibility exists that we might not get to the finish line on this one. Nonetheless, and at the very least, the announcement today signals our intention to become a leader in securing compelling, truly differentiated power sources for bitcoin mining and for AI."

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 Company's ability to close the acquisition with [ ]; the total consideration for the acquisition; the ability of the assets to be acquired to produce energy at both the cost and the volume anticipated; the results of diligence reviews; the engagement, and the results of such engagement, with regulatory bodies, First Nations, local stakeholders and norther communities; green initiatives; plans to expand the Company's business to include AI and high performance computing; the future financial performance of the Company; changes in the Company's strategy and future operations; financial position; estimated revenues and losses; projected costs; prospects, plans and objectives of management; and future 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, as updated by the Company's subsequent filings.

INVESTOR CONTACT:

Name: James Carbonara
Company: Hayden IR
Phone: (646)-755-7412
Email: james@haydenir.com

SOURCE: Gryphon Digital Mining



View the original press release on accesswire.com

FAQ

What is the power generation capacity of GRYP's new natural gas asset acquisition?

The natural gas asset has an initial power generation capacity of 100 MW, with potential expansion up to 1 GW under Gryphon's direction.

How much will GRYP pay for the natural gas assets in British Columbia?

Gryphon Digital Mining will pay CAD $2 million in cash at closing, plus additional closing and ongoing obligations that are yet to be determined.

What is the expected energy cost per KWH for GRYP's new natural gas asset?

Once developed, the asset is expected to produce energy for less than $0.03 per KWH.

How much contingent natural gas resources does GRYP's new acquisition contain?

The natural gas assets contain over 5 trillion cubic feet (Tcf) of contingent natural gas resources.

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