Gryphon Digital Restructures $18 Million Debt With Lender Anchorage, Grants It Board Seat

On Monday, Gryphon Digital Mining, Inc. GRYP announced it has entered into an agreement with lender Anchorage Lending CA, LLC, a subsidiary of Anchor Labs, Inc. d/b/a Anchorage Digital, to restructure the Company's outstanding debt substantially.

Under the terms of the agreement, Gryphon's remaining 304 BTC (approximately $18 million) liability to Anchorage Digital will be split between $13 million, which will convert into equity and pre-funded warrants and $5 million, which will remain as debt.

Anchorage Digital will be granted a seat on the Company's Board of Directors.

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The $13 million converts into 8.3 million Gryphon common shares and 3.5 million pre-funded warrants for $1.10 per share, representing a 100% premium to Gryphon's trailing 30-day average closing price. 

The remaining $5 million debt will have a 3-year term with a 4.25% annual interest rate, payable interest only during the term. 

At the end of the term, if the Company has not paid off the debt, Anchorage Digital may convert the $5 million into equity as follows: 50% ($2.5 million) at $1.10/share and 50% ($2.5 million) at $1.50/share. Anchorage Digital will also receive warrants to acquire 2 million shares at $1.50/share. 

Gryphon CEO Steve Gutterman said, "By reducing our debt from approximately $18 million to $5 million and offering conversion at $1.10 per share – approximately double our current stock price – we are not just improving our balance sheet, we believe we are showcasing a sophisticated investor's belief in our value. "

Mr. Gutterman added, "With an improved balance sheet in place, we believe we are now well-positioned to execute on accretive initiatives, including securing low-cost power deals, strategic M&A, and expanding our revenue generating operations. And, perhaps most importantly, we are delighted to have Anchorage Digital's input as a member of our board."

"Bitcoin mining plays an important role in the digital asset ecosystem, and we believe Gryphon can seize opportunity by applying traditional business rigor to accelerate its growth plans. We're pleased to bring Gryphon onto our balance sheet as a vote of confidence," said Nathan McCauley, Co-Founder and CEO of Anchorage Digital.

Price Action: GRYP stock closed higher by 2.14% on $0.6100 at Friday.

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