Despite the cancellation of the merger between Gryphon Digital Mining and Sphere 3D, both companies remain committed to developing carbon-neutral Bitcoin mining operations.
In a joint statement dated April 4, the two cryptocurrency mining companies said the move away from the merger was a mutual decision “due to changing market conditions, the passage of time and the relative financial position of the companies.” The cancellation does not appear to stop either company from pursuing plans to build carbon-neutral Bitcoin (BTC) mining facilities.
The merger was announced last June and the two companies were to become one under the name Gryphon. It would also make Gryphon a public company by virtue of the fact that Canada’s Sphere 3D is already trading under the ticker symbol ANY on the NASDAQ.
Gryphon claims to be the first carbon-negative miner with 500,000 carbon offset credits. Neither Sphere 3D nor Gryphon responded to comments about how they achieved net neutrality.
The firms already have a close working relationship, of which Gryphon CEO Rob Chang said he was looking forward to “the mutual success of both companies.” Gryphon operates Sphere’s 1,000 mining device fleet, and Sphere expects to increase this fleet by 59,000 devices by June of this year. Gryphon controls 7,200 of its own devices, which are hosted by blockchain infrastructure provider Core Scientific.
Last July, Gryphon acquired 7,200 Antminer mining rigs worth about $48 million, which helped increase hashing power by about 720 petahashes per second (PH/s).
Related: Core Scientific Hits Digital Gold: Revenue Up 800%, Gross Margin Up 2500%
The environmental impact of bitcoin mining is the focus of attention from regulators around the world. Operational carbon-neutral facilities can help prevent some of the criticisms caused by bitcoin mining, such as increased noise pollution and power grid failures.
One of America’s largest hash power providers, New York State, is considering a moratorium on mining to give its environmental agency time to study the impact of mining on the environment.