Gryphon Digital Mining Restructures Debt with Anchorage Digital, Securing $13 Million Equity Investment
Gryphon Digital Mining, Inc. (GRYP) has announced a significant restructuring of its outstanding debt, entering into an agreement with Anchorage Lending CA, LLC, a subsidiary of Anchorage Digital. This strategic move aims to bolster Gryphon’s financial standing and set the stage for future growth.
Under the agreement, Gryphon’s remaining $18 million debt to Anchorage Digital will be divided. $13 million will be converted into equity and pre-funded warrants, while the remaining $5 million will stay as debt. This represents a significant vote of confidence from Anchorage Digital in Gryphon’s future prospects, as demonstrated by their decision to take a seat on the company’s board of directors.
The $13 million equity conversion will see Gryphon issue 8.3 million common shares and 3.5 million pre-funded warrants, priced at $1.10 per share. This represents a 100% premium to Gryphon’s trailing 30-day average closing price. The remaining $5 million debt will carry a 3-year term with a 4.25% annual interest rate, payable only during the term. At the end of the term, if the debt remains unpaid, Anchorage Digital can convert the $5 million into equity, with 50% at $1.10/share and 50% at $1.50/share. Anchorage Digital will also receive warrants to acquire 2 million shares at $1.50/share.
Gryphon CEO Steve Gutterman highlighted the strategic benefits of the agreement, stating that it not only strengthens their balance sheet but also showcases a sophisticated investor’s confidence in their value. He sees this as a crucial step towards executing on accretive initiatives, including securing low-cost power deals, strategic acquisitions, and expanding revenue-generating operations. Gutterman also expressed delight in having Anchorage Digital’s input as a board member.
Nathan McCauley, Co-Founder and CEO of Anchorage Digital, emphasized the importance of Bitcoin mining within the digital asset ecosystem and expressed confidence in Gryphon’s ability to leverage traditional business principles to accelerate its growth plans. He characterized the investment as a vote of confidence in Gryphon’s future success.
This agreement represents a significant development for Gryphon Digital Mining, providing a solid foundation for future growth and expansion. The company’s stock closed 2.14% higher at $0.6100 on Friday, indicating positive market sentiment in response to this news.
The key takeaways from this news are:
* Gryphon Digital Mining has secured a significant equity investment from Anchorage Digital.
* The deal will help reduce Gryphon’s debt burden and improve its financial position.
* Anchorage Digital will have a board seat, providing valuable input and expertise.
* Gryphon is poised for growth initiatives including securing low-cost power deals, strategic acquisitions, and expanding revenue-generating operations.
* This news signals confidence in the future of Bitcoin mining and Gryphon’s role within the ecosystem.
