Gryphon Digital Mining acquires a low-energy-cost Bitcoin mining operation in Louisiana: $0.01/kWh electricity price.
On August 20, the U.S. company Gryphon Digital Mining announced the completion of an agreement to acquire a Bitcoin mining operation with very low energy costs. The operation is located in Louisiana and uses electricity at a cost of approximately $0.01 per kilowatt-hour (kWh).
The acquisition, valued at $1.5 million, includes up to 2.9 megawatts (MW) of operational capacity and 59 PH/s of Bitcoin mining machines. The agreement also includes gas generators and containers. According to the announcement, Gryphon expects to generate approximately $1 million in annual revenue from this acquisition.
Regarding the acquisition, Gryphon’s CEO, Rob Chang, stated:
“We believe that this acquisition of ultra low-cost power is our first step along an identified path of over 500 MW of similar low-cost power generation opportunities.”
With the acquisition of low-cost electricity and the prospect of generating energy at similar costs in the future, Gryphon aims to strengthen its position as a low-cost operator, boasting a competitive advantage in the mining sector.
Reduction of carbon emissions
Gryphon remains strongly committed to reducing carbon emissions, focusing on the use of energy derived from gas flaring.
Gas flaring involves burning natural gas (primarily methane) that is extracted along with oil, which is a waste material more polluting than CO2. The combustion of methane generates CO2, thus becoming less polluting. Instead of burning methane and flaring it into the atmosphere, Gryphon channels the methane into a generator, burns it internally, and generates electricity to power mining operations.
This approach helps mitigate the environmental impact by reducing the carbon emissions that would have been generated through gas flaring.
Future opportunities
Chang stated that the opportunities offered by ultra-low-cost energy could enable higher profit margins through the use of more efficient machines or allow a return on investment on less expensive machinery. Other possible applications include hosting services or high-performance computing operations.
