Gryphon Digital Mining (GRYP) has entered into an agreement with Anchorage Lending to substantially restructure the Company’s outstanding debt. Importantly, this transaction creates positive equity for Gryphon. With the conversion of approximately $13 million of the Anchorage Digital debt into equity, and the reduction of the remaining debt to $5.0 million. Under the terms of the agreement, Gryphon’s remaining 304 BTC liability to Anchorage Digital will be split between $13 million that converts into equity and pre-funded warrants and $5 million that will remain as debt. The $13 million converts into 8,287,984 Gryphon common shares and 3,530,198 pre-funded warrants at a price of $1.10 per share, representing a 100% premium to Gryphon’s trailing 30-day average closing price. The remaining $5 million debt will have a 3-year term with a 4.25% annual interest rate, payable interest only during the term. At the end of the term, if the Company has not paid off the debt, Anchorage Digital may convert the $5 million into equity as follows: 50% at $1.10/share and 50% at $1.50/share. Anchorage Digital will also receive warrants to acquire 2 million shares at $1.50 / share. Anchorage Digital will be granted a seat on the Company’s Board of Directors.
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