Gryphon Digital Mining Ends Plans to Go Public Through Merger With Sphere 3D

The companies agreed to terminate their agreement, which was first announced in June.

AccessTimeIconApr 5, 2022 at 12:39 a.m. UTC
Updated Apr 5, 2022 at 2:28 p.m. UTC

James Rubin is CoinDesk's U.S. news editor based on the West Coast.

Gryphon Digital Mining, a privately held company focused on mining bitcoin (BTC) using 100% renewable energy, will not be going public via a reverse merger with publicly traded data management firm, Sphere 3D (ANY), the companies announced Monday.

  • In a statement, Gryphon and Sphere said they had agreed to terminate the agreement "due to changing market conditions, the passage of time, and the relative financial positions of the companies, among other factors."
  • The companies said they would continue to work together through what they termed a Master Services Agreement, with Gryphon generating "operating income through management of Sphere 3D's mining fleet," and Sphere 3D benefiting from "Gryphon's expertise in mining." Sphere 3D has been expanding its own mining operations and now has 1,000 miners running, the company said in the statement.
  • Gryphon appointed a new CFO, Brian Chase, who previously worked at Garrison Investment Group and Blackstone Group (BX), said a Tuesday press release.
  • The deal was announced on June 3 and initially slated to close in the third quarter of 2021. But the companies pushed back that timeframe to the fourth quarter due to a complicated regulatory approval process, and then again to the first quarter of 2022.
  • Under terms of the agreement, Sphere said that it would have issued 111 million shares to Gryphon shareholders. Gryphon CEO Rob Chang, who previously served as chief financial officer of bitcoin miner Riot Blockchain (RIOT), would have become CEO of the combined company, which would have taken the Gryphon name.
  • “As a pending shareholder and operating partner of Sphere 3D, we look forward to the mutual success of both companies," Chang said in the Monday statement.
  • Nasdaq-traded Sphere's share price closed down 1.8% on Monday.

UPDATE (April 5, 13:25 UTC): Adds news about CFO appointment in third bullet.


DISCLOSURE

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

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.

CoinDesk - Unknown

James Rubin is CoinDesk's U.S. news editor based on the West Coast.

CoinDesk - Unknown

James Rubin is CoinDesk's U.S. news editor based on the West Coast.

Trending

1
CoinDesk - Unknown
CoinShares Completes Napoleon Acquisition, Can Now Offer Products Across EU

The acquisition of Napoleon Asset Management was subject to approval by the AMF, which was granted on June 28.

CoinDesk - Unknown
2
CoinDesk - Unknown
Coinbase Says Miners’ Sales of Newly Minted Bitcoins Don’t Add Significant Market Pressure

If all newly issued bitcoin were immediately sold onto the market each day, it would equate to only 900 BTC of selling pressure, the report said.

CoinDesk - Unknown
3
CoinDesk - Unknown
WonderFi Closes Acquisition of Crypto Trading Platform Coinberry

The Canadian crypto firm says it's open to more deals for firms hit by the crypto winter.

CoinDesk - Unknown
4
CoinDesk - Unknown
Crypto Lender Celsius Cuts 150 Jobs Amid Restructuring: Report

Withdrawals are still paused and the company has hired restructuring experts as it faces a financial crisis.

CoinDesk - Unknown