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]

Core Insights - Sphere 3D Corp. provided a strategic and operational update for August 2024, highlighting a significant decrease in Bitcoin mined compared to previous months [1][2]. Financial Performance - Bitcoin mined in August 2024 was 12.7, a decrease from 58.3 in August 2023 and 16.8 in July 2024 [3]. - Bitcoin sold in August 2024 was 12.6, down from 65.7 in August 2023 and 22.0 in July 2024 [3]. - Mining revenue for August 2024 was $0.8 million, a decline from $1.6 million in August 2023 and $1.0 million in July 2024 [3]. - Bitcoin holdings at the end of August 2024 were 2.1, slightly up from 2.0 in July 2024 but down from 2.8 in August 2023 [3]. - The deployed hash rate at month-end was 1.0 EH/s, down from 1.3 EH/s in August 2023 and 1.2 EH/s in July 2024 [3]. Operational Updates - The second batch of Antminer S21 fleet upgrades has arrived, with over 800 units now online or ordered, contributing to a total of 0.2 EH/s [2][4]. - A new 12.5 MW site is being developed in Iowa, targeting completion by early December 2024, with an average energy cost of approximately 4 cents [4][6]. - The company is actively replacing older machines with newer models, which is expected to temporarily reduce Bitcoin production in the coming months [4][6]. Strategic Initiatives - Sphere 3D is pursuing a merger with a company focused on vertical integration and is in discussions with several potential partners [5]. - The company aims to maintain a debt-free status while gradually refreshing its fleet to optimize operational efficiency [7]. Company Overview - Sphere 3D Corp. is a cryptocurrency miner focused on expanding its Bitcoin mining operations through efficient procurement of next-generation equipment and partnerships with data center operators [8].

Core Insights - Sphere 3D Corp. has signed a letter of intent to acquire a 12.5 MW Bitcoin mining site in Iowa, which is expected to operate with an average power cost of sub-4 cents per kilowatt-hour, ready by December 2024 [1][2] - The company has partnered with Simple Mining LLC for the engineering, development, and operation of the site, entering into a three-year Managed Service Agreement [1][2] Company Strategy - The acquisition aligns with Sphere 3D's goal of reducing third-party hosting exposure through vertical integration, aiming for sustainable growth and long-term success [2] - The company intends to streamline operations, improve efficiencies, and reduce marginal costs, ultimately increasing profitability and shareholder value [2][3] - Sphere 3D is committed to maintaining a debt-free status while executing its long-term strategy of owning data centers and refreshing its mining fleet [2] Partner Profile - Simple Mining, established in 2020, has grown to manage 40 MW of Bitcoin mining capacity, with plans to expand to an additional 25 MW by 2024 and over 100 MW by 2025 [2] - The company emphasizes customer service and operational excellence, achieving a 98% average uptime across all sites since inception [2]