Gryphon Digital Mining, Inc. reported significant financial developments in its latest 10-Q filing for the quarter ending September 30, 2024. The company, which focuses on digital asset mining, particularly Bitcoin, experienced a decline in total revenues, reporting $3.7 million for Q3 2024, down from $5.5 million in Q3 2023. This decrease was attributed to a reduction in mining revenues, which fell to $3.7 million from $5.2 million year-over-year. However, for the nine months ended September 30, 2024, total revenues increased to $16.7 million, compared to $15.8 million in the same period of 2023, driven by higher mining activity.

Despite the revenue growth for the nine-month period, the company reported a net loss of $21.7 million for the nine months ended September 30, 2024, compared to a loss of $17.6 million for the same period in 2023. The loss before provision for income taxes also increased to $5.9 million in Q3 2024, down from $8.1 million in Q3 2023, indicating improved operational efficiency. The accumulated deficit rose to $68.1 million as of September 30, 2024, from $47.2 million at the end of 2023.

Gryphon's operational costs saw a notable increase, with total operating expenses for Q3 2024 at $9.1 million, down from $14.7 million in Q3 2023. The company attributed this reduction to lower depreciation expenses and a decrease in costs associated with mining operations. However, general and administrative expenses surged to $8.7 million for the nine months ended September 30, 2024, compared to $3.3 million in the same period of 2023, largely due to increased professional fees and investor relations expenses related to the recent merger.

Strategically, Gryphon completed a merger with Legacy Akerna Corp. on February 9, 2024, which was treated as a reverse recapitalization. This merger resulted in Gryphon's common stock being traded on Nasdaq under the symbol "GRYP." The company also restructured its Anchorage Loan in October 2024, converting a portion into equity and issuing additional warrants, which may impact its future capital structure and operational flexibility.

The company faced challenges, including a lawsuit from Sphere 3D regarding a terminated management services agreement, which could have implications for its financial condition. Additionally, Gryphon received notices from Nasdaq for non-compliance with minimum bid price and market value requirements, with deadlines for regaining compliance set for March 2025. The termination of its hosting agreement with Coinmint, effective January 1, 2025, poses further risks to its mining operations, potentially affecting its market position and operational efficiency.