Core Viewpoint - Sphere 3D Corp. announced that President and CEO Patricia Trompeter will take a temporary medical leave of absence for approximately four months, with CFO Kurt Kalbfleisch stepping in as acting CEO during this period [1][2]. Company Leadership - Patricia Trompeter will remain engaged in key strategic decision-making while on leave, continuing her role on the Board of Directors [2][3]. - Kurt Kalbfleisch, who has been with the company since December 1, 2014, will oversee daily operations and maintain business continuity as acting CEO [3]. Board Confidence - The Board of Directors has expressed full confidence in the management team's ability to execute the company's strategic initiatives and maintain momentum during Trompeter's absence [3][4]. Company Overview - Sphere 3D Corp. is a cryptocurrency miner focused on expanding its industrial-scale Bitcoin mining operations through efficient procurement of next-generation mining equipment and partnerships with leading data center operators [5]. - The company is committed to growing shareholder value while adhering to strict environmental, social, and governance standards [5].

Core Viewpoint - Sphere 3D Corp. has announced a registered direct offering and concurrent private placement to raise approximately $6 million for its Bitcoin mining operations [2][4]. Group 1: Offering Details - The company has entered into a securities purchase agreement with a single institutional investor for the issuance of 4,225,353 common shares at a price of $1.42 per share [2]. - In the concurrent private placement, the company will issue warrants to purchase up to 4,225,353 common shares with an exercise price of $1.50 per share, exercisable six months from issuance and expiring in five and a half years [3]. - The gross proceeds from the offerings are expected to be around $6 million before deducting fees and expenses [4]. Group 2: Use of Proceeds - The net proceeds from the offerings will be utilized to enhance operational efficiency, upgrade the mining fleet, integrate infrastructure, and for general corporate purposes [4]. Group 3: Closing and Regulatory Information - The offerings are expected to close on or about November 21, 2024, subject to customary closing conditions [5]. - The shares are being offered under a registration statement declared effective by the SEC on October 15, 2024 [6]. Group 4: Existing Warrants Amendment - The company will amend existing warrants previously issued to the investor, reducing the exercise price from $66.50 to $1.50 per share and changing the exercise date and termination date to align with the new offerings [8][9]. Group 5: Company Overview - Sphere 3D Corp. is a cryptocurrency miner focused on expanding its industrial-scale Bitcoin mining operations through efficient procurement of next-generation mining equipment and partnerships with leading data center operators [11].

Core Insights - Sphere 3D Corp. provided a strategic and operational update for October 2024, highlighting an increase in Bitcoin production and ongoing developments in mining operations [1] Production Metrics - 11.7 Bitcoin were mined in October 2024, showing a slight increase from previous months [2] - The month-end deployed hash rate was 0.8 EH/s, down from 1.3 EH/s in October 2023 [2] - Bitcoin mined in October 2023 was 69.2, which decreased to 9.2 in September 2024 before rising to 11.7 in October 2024 [2] Financial Performance - Mining revenue for October 2024 was $0.8 million, compared to $2.0 million in October 2023 and $0.6 million in September 2024 [2] - Bitcoin sold in October 2024 was 12.0, up from 10.0 in September 2024 [2] Operational Developments - The company initiated development on a new 12.5 MW hosting site in Iowa, with a long-term power contract under $0.04 per kWh starting January 1, 2025 [2][5] - The CEO noted that 875 of the planned 1,000 new generation Bitmain S21 machines were brought online, with an additional 1,000+ expected in Q1 2025 [3][6] Strategic Focus - The company aims to maximize production levels while managing operating costs, transitioning to lower-cost facilities to enhance profitability [4] - Discussions with potential merger partners are advancing as operations improve [8] Future Outlook - Production is expected to rebound in late December/early January as machines are redeployed to lower-cost facilities [9] - The recent increase in Bitcoin prices and political developments are anticipated to provide a more stable environment for Bitcoin [9]

Group 1 - Sphere 3D Corp. reported quarterly earnings of $0.01 per share, surpassing the Zacks Consensus Estimate of a loss of $0.19 per share, and showing improvement from a loss of $0.38 per share a year ago, resulting in an earnings surprise of 105.26% [1] - The company posted revenues of $2.36 million for the quarter ended September 2024, which missed the Zacks Consensus Estimate by 52.90%, and this is a decline from year-ago revenues of $5.72 million [2] - Sphere 3D shares have decreased by approximately 53.6% since the beginning of the year, contrasting with the S&P 500's gain of 25.5% [3] Group 2 - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to these expectations [4] - The trend of estimate revisions for Sphere 3D is mixed, leading to a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market in the near future [6] - The current consensus EPS estimate for the upcoming quarter is -$0.19 on revenues of $4.9 million, and for the current fiscal year, it is -$0.52 on revenues of $21.5 million [7] Group 3 - The outlook for the Financial - Miscellaneous Services industry, where Sphere 3D operates, is currently in the top 28% of over 250 Zacks industries, suggesting that the industry’s performance can significantly impact the stock [8]

Mining Performance - Sphere 3D mined 38.7 Bitcoin during Q3 2024, a decrease of 78.7% compared to 181.7 Bitcoin in Q3 2023[4] - Mining revenue for Q3 2024 was $2.4 million, down 53.1% from $5.1 million in Q3 2023[5] - The company ended Q3 2024 with a hashrate of approximately 0.7 EH/s[2] Financial Performance - Other income for Q3 2024 was $5.8 million, significantly up from $0.1 million in Q3 2023, including a $3.0 million inflow from a hosting contract buyout[5] - Operating costs and expenses decreased to $7.5 million in Q3 2024, down 38.5% from $12.1 million in Q3 2023[6] - Net income for Q3 2024 was $0.1 million, compared to a net loss of $6.3 million in Q3 2023, marking a significant turnaround[6] Assets and Equity - As of September 30, 2024, Sphere 3D had Bitcoin holdings of 1.3 Bitcoin, with a market value of approximately $0.08 million[4] - Total assets as of September 30, 2024, were $44.3 million, a slight decrease from $45.7 million at the end of 2023[10] - Total shareholders' equity increased to $36.0 million as of September 30, 2024, up from $26.5 million at the end of 2023[10] Future Plans - Sphere 3D plans to acquire a 12.5 MW site in Iowa with average energy costs below $0.04 per kWh[2]

Financial Performance - Total revenues for the three months ended September 30, 2024, were $2,355,000, a decrease of 58.8% compared to $5,724,000 for the same period in 2023[9]. - Bitcoin mining revenue for the nine months ended September 30, 2024, was $13,967,000, an increase of 10.9% from $12,592,000 in the same period of 2023[9]. - The company reported a net income of $104,000 for the three months ended September 30, 2024, compared to a net loss of $6,314,000 for the same period in 2023[10]. - As of September 30, 2023, Sphere 3D Corp. reported a net loss of $6,314,000, compared to a net loss of $4,760,000 for the same period in 2022, indicating a worsening financial performance[15]. - The company reported proceeds from the sale of Bitcoin amounting to $13,529,000 for the nine months ended September 30, 2024, compared to $12,958,000 for the same period in 2023[15]. - The company reported a net loss of $2.2 million for the first nine months of 2024, with ongoing concerns about cash flow sustainability[111]. Assets and Liabilities - Total current assets increased to $14,501,000 as of September 30, 2024, compared to $13,510,000 as of December 31, 2023, reflecting a growth of 7.3%[6]. - Total liabilities decreased to $44,255,000 as of September 30, 2024, down from $45,663,000 as of December 31, 2023, indicating a reduction of 3.1%[7]. - The company’s total shareholders' equity increased to $35,848,000 as of September 30, 2024, compared to $26,523,000 as of December 31, 2023, representing a growth of 35.3%[7]. - The carrying amount of property and equipment, net, was $23.391 million as of September 30, 2024, compared to $24.166 million at December 31, 2023[54]. - Total other current assets decreased to $2.522 million as of September 30, 2024, from $11.938 million at December 31, 2023[53]. Cash Flow and Liquidity - The cash and cash equivalents increased significantly to $4,950,000 as of September 30, 2024, compared to $586,000 as of December 31, 2023[6]. - The company has projected that cash on hand may not be sufficient to continue operations within 12 months unless additional funding is raised, highlighting concerns about its going concern status[19]. - Cash and cash equivalents rose to $5.0 million as of September 30, 2024, from $0.6 million at December 31, 2023, reflecting improved liquidity[111]. - Net cash used in operating activities was $(3.1) million for the first nine months of 2024, compared to $(6.0) million in 2023, indicating reduced cash outflow[112]. Mining Operations - The company plans to continue expanding its Bitcoin mining operations and exploring new technologies to enhance efficiency and profitability[9]. - The company has established a Bitcoin mining operation and aims to grow its enterprise-scale mining capabilities through equipment procurement and partnerships[18]. - The company currently mines Bitcoin only in Missouri, Texas, and Iowa, but similar regulations in other states could adversely affect operations[126]. - The average energy efficiency of miners as of September 30, 2024, was 28.4 J/th, with a range from 21.5 to 38 J/th, indicating improved efficiency in Bitcoin mining operations[89]. - The company is in the process of replacing older machines with newer generation models[89]. Regulatory and Market Risks - The company faces potential regulatory risks due to changing environmental regulations, which could impose significant costs related to energy requirements and compliance[120]. - A two-year moratorium on certain Bitcoin mining operations in New York highlights the increasing regulatory scrutiny on the industry[120]. - Future regulatory developments could require the company to register and comply with extensive regulations, potentially resulting in extraordinary expenses[126]. - The trading price of the company's common shares must comply with Nasdaq listing requirements, or it risks delisting, which would limit market access and financing options[128]. Shareholder and Equity Information - The company issued 2,422,710 common shares for the conversion of preferred shares, resulting in an increase of $4,327,000 in common shares[12]. - Sphere 3D Corp. issued common shares for the conversion of preferred shares, resulting in an increase of 2,699,136 shares and $8,335,000 in equity[14]. - The weighted average common shares outstanding for basic income per share increased from 12,653,413 in 2023 to 20,733,022 in 2024[72]. Expenses and Costs - Operating costs and expenses for the nine months ended September 30, 2024, totaled $26,697,000, a decrease of 8.0% from $29,056,000 in the same period of 2023[9]. - General and administrative expenses decreased to $9.5 million in the first nine months of 2024 from $10.5 million in 2023, primarily due to reduced operating costs and outside services related to cryptocurrency expansion[103]. - The company incurred costs of $0.4 million under the Joshi Hosting Agreement for the three months ended September 30, 2024, compared to nil in the same period of 2023[75]. Investment and Impairment - The Company recorded an impairment charge of $0.9 million for idle mining equipment during the nine months ended September 30, 2024[54]. - The Company recorded a $20,000 decrease to the opening balance of accumulated deficit and an increase to digital assets due to the early adoption of ASU 2023-08[42]. - Unrealized gain on investment in equity securities was $4.1 million in 2024, compared to nil in 2023, linked to equity investment in Core Scientific Inc.[108]. Cybersecurity and Operational Risks - The company acknowledges the risk of becoming a target for cyber-attacks as it grows, which could adversely impact operations and profitability[132]. - Cryptocurrency holdings are stored in cold wallets with custodians like Bitgo and Coinbase, but access could be restricted due to cybercrime, impacting liquidity[132]. - The loss of private keys to digital wallets could result in irreversible loss of cryptocurrency holdings, significantly affecting the company's financial health[132].

Stamford, Connecticut--(Newsfile Corp. - November 14, 2024) - Sphere 3D Corp. (NASDAQ: ANY) ("Sphere 3D"), a Bitcoin mining company operating at an industrial scale, today reported financial results for the quarter ended September 30, 2024.2024 Third Quarter Highlights Sphere 3D and Simple Mining LLC entered into a letter of intent to acquire a 12.5 MW site in Iowa featuring average sub 4c energy.Sphere 3D mined 38.7 Bitcoin during the quarter.Sphere 3D ended the quarter with 0.7 EH/s.CEO Comments“Our prio ...

Core Insights - Sphere 3D Corp. provided an operational update for September 2024, highlighting a strategic shift towards lower-cost hosting sites and increased cash liquidity [1][3][5] Operational Performance - The company mined 9.2 Bitcoin in September 2024, a significant decrease from 63.6 Bitcoin in September 2023 and 12.7 Bitcoin in August 2024 [2][3] - The month-end deployed hash rate was 0.7 EH/s, down from 1.3 EH/s in September 2023 and 1.0 EH/s in August 2024 [3] - Mining revenue for September 2024 was $0.6 million, compared to $1.7 million in September 2023 and $0.8 million in August 2024 [3] Strategic Developments - The company is developing a new 12.5 MW hosting site in Iowa, with a long-term energy contract securing rates under $0.04/kWh and an anticipated uptime of over 97% [5][6] - The buyout of a hosting contract has improved cash reserves and reduced overall mining costs, allowing for a strategic reallocation of miners to more cost-effective sites [3][5] Fleet Enhancements - Sphere 3D has added 0.21 EH/s of higher-efficiency machines to its fleet, with plans to deploy 1,000 Bitmain S21 units by Q4 2024 and another 1,000 in Q1 2025 [4][6] - The total miner fleet now includes a significant number of Bitmain S21 and S21 Pro machines, contributing close to 0.2 EH/s in additional hash rate [6] Executive Insights - The company anticipates a strong Bitcoin market moving into Q4 2024 and 2025, focusing on reducing mining costs and maximizing production [7][8] - The transition to facilities with competitive power costs and ongoing fleet upgrades positions the company for profitability and growth [8]

Stamford, Connecticut--(Newsfile Corp. - September 23, 2024) - Sphere 3D Corp. (NASDAQ: ANY) ("Sphere 3D"), a Bitcoin mining company, is providing a strategic and operational update for August 2024.Key Highlights:Second batch of Antminer S21 fleet upgrades have arrived12.7 Bitcoin mined in August 2024Month-end deployed hash rate was 1.0 EH/s MetricsAug 2023July 2024Aug 2024Bitcoin Mined58.3 16.8 12.7 Bitcoin Sold65.7 22.0 12.6 Mining Revenue$1.6 million $1.0 million$0.8 millionBitcoin Holdings2.8 2.02.1Dep ...

Sphere 3D Corp. Signs Letter of Intent to Acquire a 12.5 MW Site in Iowa Featuring Average Sub -4c Energy, Set to be Operational by December 2024September 09, 2024 7:45 AM EDT | Source: Sphere 3D Corp.Stamford, Connecticut--(Newsfile Corp. - September 9, 2024) - Sphere 3D Corp. (NASDAQ: ANY) ("Sphere 3D"), a Bitcoin mining company, announces the development of a 12.5 MW site in Iowa.12.5 MW site with anticipated average of sub ~4 cent powerFacility estimated to be ready beginning of DecemberMa ...