Sphere 3D Corp. offers Bitcoin production and mining updates for February 2023

by James · March 16, 2023

Toronto, Ontario – (Newsfile Corp. – March 16, 2023) – Sphere 3D Corp. (NASDAQ: ANY) (“Sphere 3D” or the “Company”), dedicated to becoming the leading carbon-neutral Bitcoin mining company operating on an industrial scale, reports its Bitcoin mining results for the month ended February 28, 2023.

The CEO’s comments

“February was a month of change for Sphere 3D. We located and began deploying the majority of the 11,000+ miners we received in January. We entered into new partnerships with host providers in record time to fill the gap beyond December 2022 Core Scientific (‘ Core’) bankruptcy. With the miners deployed in March and April, our fleet is expected to be fully equipped, and after energy injection we expect to be at about 1.5 EH/s.”

Compute North Update

We continue to work with Compute North and their bankruptcy attorneys to recover our deposit through the Chapter 11 process. On February 24, 2023, we filed our financial claim with the US Bankruptcy Court which included our deposit plus additional claims from January 13, 2023, the contract repudiation date, while we continue to work within the Chapter 11 process to recover our money.

Miner Delivery Update

We have started distributing to several host partners for energization in March and April. We deployed 2,400 miners to Lancium Mining at their Texas facility. Lancium has the latest modern technology in immersion mining. We are in discussions with another hosting provider to place 5000+ miners that we expect to hash in the next 30-45 days, as well as in definitive agreements to place another 2000+ miners. With the above deployments, we will have succeeded in deploying the majority of our current fleet.

Nuclear Science Update

As previously disclosed by the Company, Sphere 3D filed an arbitration request against Core Scientific (“Core”) on its claim for the non-refundable portion of the Company’s advance deposit. Core subsequently filed for Chapter 11 restructuring on December 21, 2022, citing burdensome debt obligations resulting from rising energy prices and the decline in the price of bitcoin. Sphere 3D has engaged counsel and is aggressively pursuing all available options to recover its money. Sphere 3D participates in the Creditors Committee of the US Bankruptcy Attorney.

Update of Bitcoin production and inventory

In February 2023, Sphere 3D produced 35.06 Bitcoin, or 1.25 per day. Sphere 3D’s mining fleet operated at 90.6 BTC/EH efficiency. Daily production volume remained flat compared to January 2023. The reduction in uptime was due to some operational issues, including a leak in a transformer, a router crash and required maintenance on some machines.

During February 2023, the company employed a hybrid strategy of liquidating during bitcoin price rallies and HODLing the rest of its holdings. The company liquidated 41.45 Bitcoin during the month to fund working capital and host deposits for our S19J pros.

Bitcoin held by the Company represents a fair market value of approximately $0.3 million based on the Bitcoin price of $23,716 on February 28, 2023. As of February 28, 2023, the Company operated approximately 4,330 S19j Pros miners delivering a production capacity of approximately 433 PH /p.

Bitcoin production and inventory

To view an enhanced version of this graphic, please visit:
https://images.newsfilecorp.com/files/1705/158628_6fe891cff4c3a828_0001full.jpg

The CEO’s final comment

“February was an exciting month as we found homes for the rest of our fleet. Once fully energized we expect to increase our production to almost 1.5 EH/s. This month was pivotal for Sphere 3D, and our focus is executing and energizing a large portion of our miners over the next 30-45 days.”

About Sphere 3D

Sphere 3D Corp. (NASDAQ: ANY) is a net carbon neutral cryptocurrency miner with decades of proven enterprise data services expertise. The company is increasing its mining operations on an industrial scale through capital-efficient acquisitions of next-generation mining equipment and collaboration with best-in-class data center operators. Sphere 3D is dedicated to increasing shareholder value while honoring its commitment to strict environmental, social and governance standards. For more information about the company, please visit Sphere3D.com.

Forward-looking statements

This communication contains forward-looking statements within the meaning of Section 27A of the Securities Act, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements generally relate to future events, including the timing of the proposed transaction and other information related to the proposed transaction. In some cases, you can identify forward-looking statements because they contain words such as “may,” “will,” “should,” “experts,” “plans,” “anticipate,” “could,” “intends,” “goals,” ” project”, “considers”, “believes”, “believes”, “estimates”, “predicts”, “potential” or “continue” or the negative of these words or other similar terms or expressions. Expectations and beliefs regarding matters discussed herein may not materialize, and actual results in future periods are subject to risks and uncertainties that could cause actual results to differ materially from those projected. The forward-looking statements in this communication are also subject to other risks and uncertainties, including those more fully described in filings with the SEC, including Sphere 3D’s reports filed on Form 20-F and Form 6-K and in other filings made by Sphere 3D with Sec from time to time and available at www.sec.gov. These forward-looking statements are based on current expectations, which are subject to change.

Sphere 3D contacts

Kurt Kalbfleisch CFO, Sphere 3D
[email protected]