Gryphon Digital Mining Heads for Nasdaq Listing after Merger with Sphere 3D

UTC by Bhushan Akolkar · 3 min read
Gryphon Digital Mining Heads for Nasdaq Listing after Merger with Sphere 3D
Photo: Unsplash

The reverse-merger with Sphere 3D will help Gryphon Digital make its way to the Nasdaq exchange. This merger will help Gryphon strengthen its footprint in the clean energy crypto mining industry.

On Thursday, June 3, Bitcoin mining-focused Gryphon Digital Mining announced its merger with the data management firm Sphere 3D. Gryphon Digital Mining is an ESG-committed Crypto Miner that users 100% renewable energy.

The merged entity will operate under the single name Gryphon Digital Mining, Inc. Through its reverse merger with Sphere 3D, Gryphon also becomes a public listed company making its way to the world’s largest stock exchange Nasdaq. Commenting on the deal, Peter Tassiopoulos, Sphere 3D’s Chief Executive Officer said:

“Gryphon’s future focus on mining using 100% renewable energy will set the bar for mining companies of the future. We have been engineering GPU-based converged systems for many years and are excited to leverage our experience to enhance the performance of Gryphon’s operations. We believe the merger of the two companies provides an excellent opportunity to create meaningful value for our shareholders”.

This is probably the right time for Gryphon to announce this merger. The focus of clean energy use in crypto mining is increasing rapidly. This comes with the recent stand taken by Tesla on Bitcoin payments as well as the crackdown by Chinese authorities. Thus, with its focus on renewable energy, Gryphon Digital Mining is well-positioned in the market.

This private company has earned a name for itself for its zero-carbon footprint in the crypto mining business. Gryphon also aims to become the first vertically integrated crypto miner with a wholly-owned, 100 percent renewable energy supply.

The Proposed Gryphon Merger Transaction with Sphere 3D

As per the proposed merger transaction Sphere 3D will issue 111,000,000 common stocks to the shareholders of Gryphon. With this transaction, Sphere 3D shareholders will have only 23% controlling stake whereas Gryphon shareholders will have a 77% controlling stake.

Subject to stockholders’ approval, the merger will complete by the third quarter of 2021. The official press release notes:

“Upon a successful closing of the merger, and all regulatory approvals, the Company will continue to trade on the NASDAQ. The transaction has been approved by the board of directors of both companies. PGP Capital Advisors, LLC acted as financial advisor and has provided a Fairness Opinion in support of the transaction to the board of directors of Sphere 3D. The closing of the merger agreement is subject to customary closing conditions for a transaction of this nature and may be terminated by the parties under certain circumstances”.

Also, post the merger, Gryphon CEO Rob Chang will serve as the CEO of the combined company. Besides, several members in Gryphon will also get leadership roles in the new entity. Two members from Sphere 3D’s current board of directors will also join.

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