Gryphon Digital Mining Delays Plan to Become Publicly Traded

The miner’s plan to execute a reverse merger with Nasdaq-listed data management firm Sphere 3D is now expected to take place in the first quarter of 2022.

AccessTimeIconNov 16, 2021 at 5:22 p.m. UTC
Updated May 11, 2023 at 6:02 p.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global event for everything crypto, blockchain and Web3.Register Now

Gryphon Digital Mining, a privately held company focused on mining bitcoin using 100% renewable energy, will be closing its deal to go public in the first quarter of 2022 instead of the previously expected fourth quarter of this year.

The miner announced on June 3 that it would go public via a reverse merger with Nasdaq-listed data management company Sphere 3D (ANY). The deal was initially slated to close in the third quarter of this year but that was pushed to the fourth quarter of 2021 due to a complicated regulatory approval process.

  • Big Tech Comes to Small Town: A Bitcoin Mining Story in Spur
    15:03
    Big Tech Comes to Small Town: A Bitcoin Mining Story in Spur
  • What's the Biggest Misconception People Have About Bitcoin Mining?
    00:39
    What's the Biggest Misconception People Have About Bitcoin Mining?
  • What You Need to Know About the Bitcoin Halving
    01:47
    What You Need to Know About the Bitcoin Halving
  • Bitcoin Miner Bitfarms Warns of Default
    04:20
    Bitcoin Miner Bitfarms Warns of Default
  • However, the company said in a filing on Nov. 15 that the merger is now expected to close in the first quarter of 2022, subject to shareholder and regulatory approvals.

    “The exciting changes that we have undergone have pushed our timelines out to seek the regulatory and shareholder approvals required to close. However, we are actively working towards completion of the merger, and plan to provide further updates as we move towards closing the transaction,” the company said in a separate statement.

    On Oct. 28, Canadian investment bank PI Financial’s analyst Kris Thompson said that he wouldn’t be surprised if the merger takes place in the first quarter of 2022 due to its complicated nature.

    Under terms of the deal, Sphere said it will issue 111 million shares to Gryphon shareholders. Sphere 3D shareholders are expected to own approximately 62% of the company and Gryphon shareholders will own the remaining 38%. Gryphon CEO Rob Chang, who previously served as CFO of bitcoin miner Riot Blockchain, will be CEO of the combined company, which will take the Gryphon name.

    Sphere 3D reported its third-quarter results on Monday after the market close. Shares of Sphere 3D fell as much as 15% on Tuesday following the release of the results and the news about its delayed merger with Gryphon.

    Disclosure

    Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

    CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.

    Aoyon Ashraf

    Aoyon Ashraf is managing editor with more than a decade of experience in covering equity markets


    Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.



    Read more about