Rob Chang, CEO of president and director of Gryphon Digital Mining, joins BNN Bloomberg to discuss how he’s working to cut emissions out of Bitcoin Mining and how the ‘Halving’ this year will create a ‘survival of the fittest’ scenario for Bitcoin companies.
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>> THE PRICE OF BITCOIN IS HOLDING IN ABOUT 50,000 PUSHING ITS MARKET CAP ABOVE 1 TRILLION FOR THE FIRST TIME SINCE 2021 AS DEMAND GROWS, LET’S BRING IN SOMEONE WHO. HAS BEEN MINING SOME OF THIS BITCOIN. WE’VE GOT THE CEO OF
THE BITCOIN MINING COMPANY THAT IS NOW RUNNING ON 100% RENEWABLE. CORRECT? THE CEO ROB CHANG AT GREAT GRIFFIN DIGITAL. THERE YOU GO. WE GOT ALL THOSE STRONG START WE’VE SEEN THIS BIG MOVE HIGHER, OBVIOUSLY IN CRYPTO PRICES, SOME CHALK IT UP TO ANIMAL
SPIRITS, BUT IT’S HARD NOT LINKING IT INTO JUST JUST INSTITUTIONAL ADOPTION FLY. ALL THESE ETFS. >> ABSOLUTELY, I THINK THE ETS HAVE CERTAINLY BEEN A VERY GOOD A BOOST FOR THE DEMAND IN THE SPACE. THERE’S BILLIONS OF DOLLARS GOING INTO THESE NOW
AND THEY NEED TO BUY UP TO BITCOIN IN ORDER TO FILL THE PORTFOLIOS. WE’RE CERTAINLY SEEING THAT IMPACT. BUT EVEN ON TOP OF THAT, THERE’S JUST A FUNDAMENTAL ASPECT OF THE PRICE OF BITCOIN NEED TO SUSTAIN MINORS, FOR EXAMPLE,
AND BEING AT A PRICE THAT NEEDS ALL THAT UP. SO IT WAS A 3, 5 BEFORE BITCOIN CAME IN TERMS OF THE ETF SAND. MIGHT NOTICE A FEW CHANGES. I MEAN, YOU GUYS HAVE OBVIOUSLY GOT A BUSINESS MODEL YOU’RE, YOU’RE MINDING THE BITCOIN AND YOU’RE
GETTING A REWARD. >> FOR DOING THAT, >> BUT DOES IT ALSO YOU’RE ALSO A PUBLIC COMPANY WENT PUBLIC WITH THESE ETFS, YOU KNOW, PART OF PLAYING THE BITCOIN MINERS WAS BECAUSE IT WAS REALLY HARD TO GET ANY ACCESS TO CRYPTO INTO YOUR
PORTFOLIO. SO NOW THAT I CAN JUST BUY AN ETF, THAT’S A PURE-PLAY EXPOSURE WHILE GO TO MINORS AT ALL. WELL, TO ARGUMENT, IF YOU WERE TO LOOK AT IT FROM A GOLD ETF OR SAYS A GOLD MINE WHATNOT. >> EITHER BUY BITCOIN RIGHT
NOW AT 52,000 OR YOU BUY MINER LIKE MIKE GRIFFIN, WHO IN THE FIRST THREE QUARTERS OF LAST YEAR, MY DIFFERENT OR 60,000 AT THAT POINT. SO WE HAVE MUCH BETTER LEVERAGE. >> AND WE ALSO GROWTH ASPECTS, WHEREAS WHEN YOU BUY JUST A
BITCOIN, YOU WANT TO GET THE PRICE APPRECIATION OF THE COIN WITH THE PROPER MINOR. IF YOU GOOD MANAGEMENT ALSO GET THE UPSIDE OF THE GROWTH PROSPECTS. AND AND WHAT’S THE WHAT’S KEY TO THAT MARGIN? IS IT THE POWER ASPECT, IS IT HOW
HOW DO KEEP COSTS IN CHECK? KEEPING KOSCHECK CERTAINLY A VERY IMPORTANT PART. ELECTRICITY IS THE BIGGEST PART. >> SO FINDING LOW-COST POWER IS OF THE MOST IMPORTANT, BUT ALSO TAKING WHERE YOU GUYS CAN SOMEBODY GETTING GRAPHIC CLEAR THAT VERY IMPORTANT. WE ARE
LOCATED IN UPSTATE NEW YORK, RIGHT ALONG THE ST. LAWRENCE RIVER. SO 22% HARDER FOR US YESTERDAY. CARBON NEUTRAL. >> BECAUSE THERE ARE A LOT POPPING UP RIGHT IN ICELAND. BAD BECAUSE OF THAT GEOTHERMAL AND THE AND THE LOW COST OF
POWER THERE. HOW HOW IMPORTANT IS IT, WHAT’S THAT EXTRA EDGE OF BEING SORT OF ESG 100% RENEWABLE AND YOU’RE NOT STOPPING THERE. YOU’VE GOT TO A GOAL, NOT JUST BEING CARBON NEUTRAL, BUT CARBON NEGATIVE DID DONE IT COULD BE IF YOU’RE
DOING, IT’S PROBABLY THE RIGHT WAY. LET’S CALL COULD BE BETTER. >> SO WE ARE CARBON NEUTRAL BECAUSE WE’RE ON 2% HYDRO. BUT WE ALSO PURCHASED SOME PRETTY CHEAP CARBON OFFSET CREDITS. AND WE FOUND A GREAT OPPORTUNITY PENNIES ON THE
DOLLAR RELATIVE TO WERE ABLE TO SCORE THAT. AND BECAUSE OF THAT, WE’RE ACTUALLY CARBON NEGATIVE FROM A PERSPECTIVE. >> AND THAT MEANS WE’RE NOT SITTING SCOPED ONE OR 2, WHICH IS THE GENERAL WHAT YOU THINK FOR MOST COVERING WHICH IS THE
OPERATIONS WERE SCOPE 3, WHICH IS OUR TRAVEL WHEN THE SHE’S GOT OLIVER TWIST NOW THAT THAT WAS A BIG YOU KNOW, BITCOINS. >> GEOGRAPHIC FOOTPRINT TO ALL THE ENERGY THAT IS REQUIRED. AND SO ON THAT BASIS, ESG FUNDS MIGHT JUST SHOT IN THE
SECTOR DOES THIS KIND OF GET YOU IN THE DOOR A LITTLE BIT, ARE YOU HAVING CONVERSATIONS WITH PEOPLE WHO MIGHT NOT TYPICALLY HAVE THAT CONVERSATION ABSOLUTELY, IT’S A VERY IMPORTANT ASPECT FOR SOME, IT’S A BONUS FOR OTHERS, IT’S THEIR ENTIRE CABINET,
MUST HAVE. AND THAT’S INTERESTING THING BECAUSE WE RECENTLY WON THE FIRST 5 RECIPIENTS OF SOMETHING CALLED THE GREEN CREWS FOR BITCOIN, WHICH IS A 3RD PARTY AUDITED COMPANY THAT WILL LOOK AT OUR MISSIONS AND CERTIFY THAT ARE ACTUALLY AGREE. AND THE REASON
WHY THIS EVEN EXIST IS BECAUSE SOME VERY LARGE FUNDS WERE ACTUALLY PUSHING FOR TRUCKS OFF. THE MEANT IS THAT THE HOUSE, HOW DOES THE BUSINESS MODEL RECALIBRATE AROUND THE HAPPENING, WHICH IS THAT THE BITCOIN REWARD GETS CUT IN HALF, RIGHT? WELL, IF YOU’RE
DOING THINGS RIGHT, IT SHOULD. >> AND I AND THAT COMES MY COMMODITY BACKGROUND FOR US. IT’S BELOW COST OF BEING THE MOST PART OF THE COST CURVE. AND BECAUSE WE’RE HOUSING SHOULDN’T AFFECT ANYMORE. THAT DOES ANYONE ELSE, I GUESS, YOU
KNOW, ITS COMING WHERE AS AND SOMETIMES IN COMMODITY MARKETS THAT’S JUST OVER ACTUALLY HAVE THE FORECAST. THE GREAT THING ABOUT BITCOIN AS YOU CAN FORECAST EVERYTHING. AND SO WE KNOW IT’S GOING TO HAPPEN IN APRIL. AND WE ARE AMONG THE
LOWEST COST ANYWAY. SO IT’S REALLY A SURVIVAL OF THE FITTEST AND MANY MORE WILL SHUT DOWN BEFORE WE DESERVE THIS. A MAGNITUDE OF MARGINS STAY THE SAME. YOU THINK IT DOES FLUCTUATE BECAUSE OF THE GROUP GLOBAL NETWORK DIFFICULTY AND THAT’S NOW
GETTING INTO THE WEEDS A LITTLE BIT. BUT THE MORE COMPETITION THERE AS LET’S BE CLEAR, WE EVERY GIVE US BUT IT’S STILL A RELATIVE BASIS AS LONG AS YOU’RE RELATIVELY LOWER COST THAN EVERYONE ELSE. YOU’LL COME ON HOW DO YOU GROW
FROM HERE? WELL, NOW THERE WERE A PUBLIC COMPANY. WE’RE VERY EXCITED WE CAN USE OR STOCK TO PURCHASE PRIVATE COMPANIES, WHICH ARE SEVERAL THAT WE’RE IN CONVERSATIONS WITH RIGHT NOW. WE SEE HOW EVENTS AND THEN AT THE RIGHT TIME TO MORE OPPORTUNITIES NOW
FROM THE IN THE LAST LITTLE WRECKAGE THAT WE HAD IN CRYPTO. ABSOLUTELY. AND WE MIGHT SEE ANOTHER ONE WITH THE HAVING. SOME COMPANIES ARE NOT IN POSITION TO BE PREPARED TO TAKE YOUR TO INTO THAT. SO THOSE ARE THE COMPANIES THAT WE’D LIKE TO
OPPORTUNISTICALLY, PERHAPS BRING INTO THE FOLD. RUSH