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Gryphon Digital Mining Signs Definitive Agreement for HPC/AI Data Center Asset Scalable to 4GW of Green Energy Through Natural Gas and Carbon Sequestration

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Gryphon Digital Mining Signs Definitive Agreement for HPC/AI Data Center Asset Scalable to 4GW of Green Energy Through Natural Gas and Carbon Sequestration

Groundbreaking acquisition of major energy site in Southern Alberta expected to catapult Gryphon into elite tier of global computing infrastructure providers

Acquisition Highlights Include:

  • Massive 850 industrial zoned acreage with access to dual natural gas supply, grid connection, non-potable water resources, and dual high-speed fiber connection providers
  • World class carbon capture and sequestration capabilities on-site can make this a truly green source of energy combined with redundant sources of power
  • Expansive footprint expected to allow up to 4GW of total capacity; up to ~130MW anticipated by the end of 2026
  • Experienced technical team comes with the asset and has over 100 years of combined industry expertise, led by Harry Andersen (former COO of Pembina Pipeline)

LAS VEGAS, NV / ACCESSWIRE / January 10, 2025 / 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, has signed a definitive agreement to acquire Captus Energy’s 850-acre industrial site in Southern Alberta, Canada, which the Company believes will enable a substantial expansion into AI and high-performance computing (HPC) data center infrastructure. The acquired asset has the potential to scale to 4 gigawatts (GW) of reliable, sustainable power generation capacity through gas to power generation and carbon sequestration on site. The closing of this agreement is expected to occur in or before April, 2025.

Industry analysts and comparable companies project substantial revenue potential in the HPC/AI infrastructure space, with estimates of $1.5 million in annual revenue per MW, while VanEck’s research suggests potential revenues of up to $9.11 million per MW. At full capacity, assuming $1.5 million of revenue per MW, the Captus asset could generate over $5.0 billion of annual revenue.

This monumental acquisition follows the Company’s recent strategic moves in December 2024, creating a massive combined potential power capacity exceeding 5GW:

Steve Gutterman, Chief Executive Officer of Gryphon, commented:

We believe that this acquisition represents a transformative moment for Gryphon as we aggressively expand into the AI/HPC infrastructure market. With 850 acres of industrial land in Southern Alberta and the potential to scale to 4GW of power capacity, this site positions us to capitalize on the surging demand from AI compute requirements.

“The combination of dual natural gas supply, on-site carbon sequestration and abundant water access makes it one of the few locations in North America with all the critical elements needed for large-scale AI computing. We believe that Alberta should be at the forefront of AI/HPC power given its forward-facing government, industry expertise and abundant resources. We are excited to be working in Western Canada. We are equally excited in welcoming Harry Andersen and his team to the fold. They are true energy experts and the development of Captus could not be in better hands.”

Total consideration for the transaction is CAD $27 million, which includes CAD $3 million in restricted shares for the incoming Captus management team which vest in four equal installments over four years and all of which are subject to forfeiture if the definitive agreement does not close.

Gutterman continued,

We are extremely pleased with the company’s progress. In a few short months, we have transformed our balance sheet, strengthened our team and added significant power assets.

“We believe that the Captus acquisition, when combined with our recent British Columbia acquisition and the additions to our team, fundamentally transform Gryphon’s trajectory and potential scale. Our goal remains to build a company that is worth over a billion dollars.”

READ the latest news shaping the data centre market at Data Centre Central

Gryphon Digital Mining Signs Definitive Agreement for HPC/AI Data Center Asset Scalable to 4GW of Green Energy Through Natural Gas and Carbon Sequestration, source

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