Gryphon Digital Mining, Inc

Greetings and welcome to the Griffin Digital Mining third quarter 2024 earnings call. On the call are Steve Gutterman, Chief Executive Officer of the company, and Sim Selzman, Chief Financial Officer of the company. Before I turn the call over to Mr Gutterman, please note that the statements made on this call that are not historical facts may be forward-looking statements from the company's management made within the meaning of Section 27A of the Securities Act of 1933 as amended and Section 21E of the Securities and Exchange Act of 1934 as amended concerning future events. Words such as may, should, projects, expects, intends, plans, believes, anticipates, hopes, estimates and variations of such words and similar expressions are intended to identify forward-looking statements. These statements are subject to numerous conditions, many of which are beyond the control of the company, including those set forth in the risk factors section of the company's Form 10Q and 10K, as updated by the company's subsequent disclosures filed with the SEC. Copies of these documents are available on the SEC's website at www.sec.gov. Actual results may differ materially from those expressed or implied by such forward-looking statements. Any forward-looking statements made on this call are made only as of today's date, and that company does not undertake any obligation to update or supplement any such statements to reflect subsequent developments. Now I would like to turn the call over to Steve Gutterman. Steve, please proceed.

Thank you, Jenny, and thank you, everyone, for joining us today to discuss Griffin Digital Mining's third quarter 2024 results. We believe we have made tremendous progress over the past few months in positioning Griffin for long-term success in both our core Bitcoin mining operations and our planned strategic expansion into AI infrastructure hosting. As outlined in our recent shareholder letter, we believe that we now have the strategy, and the balance sheet strength to drive significant value creation across these two high-growth verticals. So let me highlight a few key developments. First, and importantly, we enhanced our leadership team to accelerate growth. My role was expanded from director to CEO. Jimmy Vapoulos, former CEO and CFO of HUD-8, was added as chairman. Dan Gagarin of Anchorage Digital was appointed to the board and we are thrilled. I know I'm personally thrilled that Sim Salzman, former CFO of Marathon continued, decided to continue as CFO of Griffin. This expanded team brings deep expertise that we expect to be instrumental as we execute our growth strategy. Second, we completed what we believe is a transformative debt restructuring with Anchorage Digital. that has significantly strengthened our financial position. By converting $13 million of debt to equity at a substantial premium to our stock price and restructuring the remaining $5 million on highly favorable terms, we have increased net equity and expect to have much greater flexibility to invest in growth. The monthly interest payment on the remaining $5 million of debt is now just $17,708 substantial reduction from our previous obligation. Additionally, the mandatory sweep of excess cash and Bitcoin to Anchorage is now gone, giving us even greater flexibility. Importantly, Anchorage has become our largest shareholder and Dan has joined our board and we expect them to be a key advisor going forward. This debt restructuring showcases the belief of a sophisticated investor in Griffin's true value and potential. The market appears to share this confidence as reflected in our market capitalization moving north of $40 million this week, exceeding NASDAQ listing requirements. Our ultimate vision is to maximize shareholder value, and we have set ambitious but we believe achievable goals to build substantial market value while maintaining strong price per share fundamentals. On that note, we recently announced a small acquisition of ultra low cost power mining operations at around one cent a kilowatt hour. Securing power in the one cent range is a competitive advantage in the current Bitcoin mining environment. The acquisition has not yet closed, but we expect to have an announcement about that soon. In short, we have taken significant steps to create a strong foundation for growth. And now that we have added to our team and transformed our balance sheet, we look forward to building on that foundation in the quarters and years to come. I'll now turn it over to Sim to review our financial results before closing with some additional remarks. Sim?

Thank you, Steve. I will now highlight our financial results for the quarter ended September 30th, 2024. Griffin mined approximately 61 Bitcoin and generated mining revenues of 3.7 million in Q3 2024 compared to 176 Bitcoin and 5.2 million in the same period in the prior year. Breakeven costs per Bitcoin in Q3 2024 were 59,213 compared to 21,501 in Q3 2023. The change in breakeven costs year over year reflects the halving event that occurred in 2024, with Bitcoin rewards decreased by 50%, combined with the increase in global hash rate. Our adjusted EBITDA stood at approximately negative 2.5 million for the three months ended September 30th, 2024, compared to negative 4.7 million for the three months ended September 30th, 2023. We believe breakeven costs and adjusted EBITDA are important gauges of our operational effectiveness and that highlighting these metrics gives investors and analysts better transparency for comparative analysis across mining companies. Reconciliations to the nearest gap measures can be found in our earnings released disseminated prior to the call. The company recognized a net loss of $5.9 million in Q3 2024, which includes net non-cash expenses of $3.2 million. Net non-cash expenses consisted of items including depreciation, employee stock-based compensation expense, fair market value of common stock issued to consultants, unrealized loss on marketable equity securities, change in the fair value of notes payable, and unrealized gain on digital assets. This compares to a net loss in Q3 2023 of $8.1 million, which included net non-cash expenses of $3.2 million. As of September 30, 2024, our balance sheet reports approximately $0.4 million of cash-in-cash equivalents, $0.6 million in Bitcoin, and approximately $19.3 million due for the note denominated in Bitcoin. As Steve noted, Griffin has completed a debt restructuring with Anchorage Digital, converting $13 million of debt to equity at a premium and restructuring the remaining $5 million with very favorable terms. As of December 31, 2023, our balance sheet reported approximately $0.9 million in cash-in-cash equivalents, 2.1 million in Bitcoin and 14.9 million due for the note denominated in Bitcoin. As mentioned during prior quarters, the change in the fair value of notes payable as of September 30th, 2024 reflects a direct correlation to the price of Bitcoin as of the period end. We have not increased our position of Bitcoin due and we remain fully hedged to our production. Following the restructuring, the remaining debt due to Anchorage is no longer denominated in Bitcoin. With that, I'll turn it back to Steve for some additional comments.