Why bitcoin miners like Gryphon Digital are increasingly diversifying

Led by CEO Rob Chang, Gryphon Digital Mining is at the forefront of the future of bitcoin mining and its significant energy demands. In a recent discussion with Roundtable host Rob Nelson, Chang examined the complex relationship between bitcoin mining, high-performance computing (HPC), and increasing energy requirements.

Nelson addressed the question of how bitcoin mining could meet the increasing energy demands driven by advances in artificial intelligence and chip technology. Chang acknowledged the uncertainty in quantifying this, stressing that energy demand is multi-dimensional and that HPC has already outpaced bitcoin mining. “We probably need 40,000 megawatts for HPC or any mining opportunity, and we don’t have enough power for all of that,” he said.

Chang emphasized that bitcoin miners can help create more power, especially in regions with low economic power distribution. This integration can encourage the development of additional energy sources, thus contributing to the overall energy supply.

When asked about Gryphon Digital Mining’s investment potential compared to traditional tech stocks, Chang likened the company to Nvidia rather than Microsoft. He explained that bitcoin miners and tech-focused companies on the NASDAQ generally trade according to the market’s risk appetite. “We tend to have higher volatility compared to that,” Chang said, attributing this to bitcoin’s speculative nature and emerging status.

Nelson and Chang further elaborated on investment strategies in the mining sector. Chang, while acknowledging the higher volatility, suggested that investing in a basket of mining companies or ETFs could provide diversified exposure. He stressed the importance of due diligence, noting that some of the larger players have struggled due to poor cost management. At Gryphon, the focus is on optimization and cost efficiency to ensure sustainable growth and profitability.