Gryphon Digital Mining has made a significant move in expanding its operations by acquiring an 850-acre industrial site in Southern Alberta, Canada. The site, powered by natural gas, was obtained through a signed agreement with Captus Energy for $18.7 million. This strategic acquisition is part of Gryphon Digital’s plans to enhance its AI and high-performance computing data center infrastructure.
The deal with Captus Energy is expected to be finalized before or by April 2025. As per the agreement, Gryphon Digital will pay Captus $27 million CAD, which includes $3 million CAD in restricted shares for the incoming Captus management team. In the event that the deal does not go through, the Captus team will be required to return the restricted shares.
The industrial site has the potential to scale up to 4 gigawatts in capacity and provides Gryphon Digital with access to dual natural gas supply, grid connection, water resources, and rapid fiber connection providers. Analysts predict that Gryphon could generate $1.5 million in annual revenue per megawatt, with the potential for Bitcoin mining revenue related to AI and HPC to reach up to $9.11 million per MW. At full capacity, the site could generate over $5 billion in annual revenue for Gryphon.
Steve Gutterman, the CEO of Gryphon Digital, expressed his excitement about the acquisition, stating that it marks a transformative moment for the company as it aims to expand its presence in the AI and HPC infrastructure market. Gutterman highlighted the unique features of the industrial site, including dual natural gas supply, on-site carbon sequestration, and abundant water access, making it an ideal location for large-scale AI computing.
As part of the agreement, key members of the Captus Energy team, including CEO Harry Andersen, will be joining Gryphon Digital. Gutterman believes that the acquisition of Captus Energy, combined with a previous acquisition in British Columbia, along with additions to the team, will significantly impact Gryphon’s growth potential.
In addition to the Southern Alberta acquisition, Gryphon Digital also acquired a natural gas site in British Columbia with an initial 100 MW generation capacity, scalable up to 1 GW. The projected power cost for this site is expected to be below $0.03 per kWh.
Overall, Gryphon Digital’s recent acquisitions and strategic partnerships position the company for substantial growth in the AI and HPC infrastructure market. With access to key resources and a strong team in place, Gryphon is poised to capitalize on the opportunities in the rapidly evolving digital mining industry.