Gryphon Digital acquires $18.7m site in Canada, inks new Bitcoin mining deal

Gryphon Digital Mining purchased an 850-acre natural gas-fired industrial site in Southern Alberta, Canada, for $18.7 million, with the agreement signed with Captus Energy.

According to Gryphon Digital’s press release, the Bitcoin (BTC) mining company plans to use the recently acquired asset to further expand its artificial intelligence and high-performance computing data center infrastructure. Gryphon’s deal with Captus is expected to be completed before April 2025 or sometime thereafter.

Under the agreement, Gryphon Digital will pay Captus the equivalent of CAD 27 million, or $18.7 million; This includes CAD3 million ($2 million) worth of four-year restricted shares granted to the incoming Captus management team. If the deal does not go through, the Captus team will have to return the restricted shares.

The 850-acre industrial site has the potential to scale up to 4 gigawatts in capacity and provides Gryphon with dual natural gas supplies, grid connectivity, water resources as well as access to fast fiber connectivity providers.

Analysts conclude that Gryphon could generate annual revenues of $1.5 million per megawatt; but VanEck’s research believes that AI and HPC-related Bitcoin mining revenue could be as high as $9.11 million per MW. At full capacity, the asset has the potential to generate annual revenue for Gryphon in excess of $5 billion.

Steve Gutterman, Chief Executive Officer of Gryphon Digital, stated that the acquisition of Captus Energy’s asset is a transformative moment for Gryphon, as it hopes to expand its reach into the AI ​​and HPC infrastructure market.

“The combination of dual natural gas supply, in-situ carbon sequestration, and access to abundant water makes this one of the few locations in North America with all the critical elements needed for large-scale AI computing,” Gutterman said.

He added that within the scope of the signed agreement, part of the Captus Energy team, led by Captus Generation Chief Executive Officer Harry Andersen, will join Gryphon.

“We believe the Captus acquisition, combined with our recent British Columbia acquisition and additions to our team, will fundamentally change the trajectory and potential scale of Gryphon,” he said.

In December, Gryphon also acquired a natural gas field in British Columbia with an initial 100 MW of generating capacity and scalability up to 1 GW. Projected energy costs for the facility could fall below $0.03 per kWh.