American Bitcoin Corp. Q4 FY2024 earnings call

• Company was founded to mine Bitcoin profitably; shifted focus to developing power assets for AI computing infrastructure.
• Key hires include Steve Gutterman as CEO, Jimmy Vaiopoulos as Chairman, and retention of Sim Salzman as CFO.
• Completed debt restructuring with Anchorage Digital, converting $13 million of debt to equity and restructuring $5 million of debt, reducing cash outflow.
• Announced acquisition of Captus, an ideal site in Alberta for HPC and AI data centers with access to natural gas, grid redundancy, and carbon sequestration potential.
• Expanded team and strengthened balance sheet over the last six months.

For the year ending December 31, 2024, Gryphon Digital Mining mined approximately 334 Bitcoins and generated mining revenues of approximately $20.5 million. Breakeven costs per Bitcoin for 2024 were $47,359 compared to $18,192 in 2023. Adjusted EBITDA stood at approximately negative $5.5 million for 2024 compared to $94,000 in 2023. Included in adjusted EBITDA were ~$6 million in legal and marketing fees. For the three months ending December 31, 2024, net income was ~$401,000 compared to a net loss of ~$10.9 million in 2023. For the year ended December 31, 2024, net loss was ~$21.3 million compared to ~$28.6 million in 2023. As of December 31, 2024, cash and cash equivalents were ~$0.7 million, Bitcoin was ~$1 million, and note payable was ~$5.6 million.

• Anticipate developing Captus with first 130 megawatts online in 2026 and potential to expand to 4 gigawatts.
• Expect rapidly growing high margin recurring revenues from co-located customers after Captus acquisition.
• Plan to announce partners and customers for Captus project soon.
• Intend to take deliberate approach to developing Captus, starting with acquisition and then regulatory approvals and capital partnerships.

• Bitcoin mining is highly competitive and subject to variables outside control like Bitcoin price, network hash rate, and energy costs.
• Volatility in cryptocurrency market and potential regulatory changes affecting power asset development.
• Uncertainties in securing capital for large-scale power project development.

Q: Could you give the status on the Ericsson acquisition in BC?

A: Terminated original agreement but still engaged in conversations to acquire a subset of assets with fewer liabilities.

Q: Could you dive deeper on Captus latency and partnerships?

A: Captus is ~an hour outside Calgary with fiber from Rogers and TELUS for low latency. Received significant inbound interest from potential customers, and will announce partners soon.

Q: How competitive was the process to secure Captus?

A: Significant interest, but Harry Anderson's team believed in the company's vision and received Griffin stock as part of the transaction, aiding in securing the asset.

Q: Timing of 136 megawatts development and financing?

A: Hoping to get first 6 megawatts by end of current year/start of next, 30 megawatts shortly after, and 100 megawatts by end of 2026. Expect to announce financing details imminently.