Gryphon Digital Mining Announced It No Longer Will Be Going Public Through Merger With Sphere 3D

Gryphon Digital Mining, a bitcoin mining operation that builds Bitcoin miners with zero carbon footprint, announced its plan to not go public with Sphere 3D, a publicly-traded data management firm, on Monday.

Due to a number of reasons, including the relative financial positions of the companies,changing market conditions, and the passage of time, both the companies have mutually decided to end the agreement.

Sphere 3D further disclosed that it would have given the 111 million shares to Gryphon shareholders as per the terms of the agreement.

On Monday, Gryphon Digital Mining, a private mining firm that uses 100% renewable energy for Bitcoin mining, announced that it would no longer be going public with Sphere 3D, a publicly-traded data management firm.

Sphere and Gryphon informed that they are mutually ending the agreement due to various reasons, including the relative financial positions of the companies, changing market conditions, and the passage of time, in a statement.

Further, the companies said that under the Master Services Agreement, they will still be working together. As part of the agreement, Gryphon’s management of Sphere 3D’s mining fleet will be producing operating income, while Sphere 3D will benefit from Gryphon’s expertise in mining. Sphere 3D revealed in a statement that it was working on the expansion of its own mining operation and currently has 1,000 miners running.

On June 3, the announcement of the contract was made, and originally it was planned to end in 2021’s third quarter. However, owing to a complicated regulatory approval process, the companies extended the time limit to the fourth quarter, finally pushing it to the first quarter of 2022.

Sphere revealed that it would have given 111 million shares to Gryphon shareholders under the terms of the agreement. Rob Chang, the CEO of Gryphon, who is also the former CEO of Riot Blockchain, a bitcoin miner, would be the CEO of the combined company that would eventually take the name Gryphon.

In a statement on Monday, Chang said that they are excited to witness the mutual success of both companies as a pending shareholder and operating partner of Sphere 3D. As of Monday, the share price of the Nasdaq-traded Sphere closed down 1.8%.