Sphere 3D Corp. offers Bitcoin production and mining updates for November 2022

by James · December 15, 2022

Production for the month was 10.28 Bitcoin
Total Bitcoin holdings were 90.34 at the end of the month
The operation achieved 105.2 BTC/EH efficiency

Toronto, Ontario–(Newsfile Corp. – December 15, 2022) – 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, provides Bitcoin mining results for the month ending November 30, 2022.

The CEO’s comments

“November was a month of significant achievements for Sphere 3D. With the announced restructuring of our BitFuFu contract, we expect to supply and energize thousands of new miners. BitFuFu has sent more than 11,000 miners to the US, which we expect to arrive during of the coming weeks When these machines are activated, our production capacity will increase dramatically.

“On a parallel track, we are working closely with the new operator of the Wolf Hollow site to provide energy to our approximately 3,336 installed miners. Delays in energy delivery have been complicated by legal restrictions related to Compute North’s bankruptcy proceedings, but we expect a significant of these miners will be hashing in the coming days and are doing everything to accelerate their energy supply,” said Patricia Trompeter, CEO of Sphere 3D.

“At a macro level, our focused strategy will ensure that the company is well positioned to capitalize on our increased production capacity as the market recovers. The coming month will be transformative as we secure our position in the starting blocks for 2023.”

Compute North Update

As previously revealed, the company sent 4,026 miners to Compute North before it filed for bankruptcy. About 3,336 miners from that order were installed at what was formerly known as Compute North’s Wolf Hollow site. These miners are expected to gain energy in the coming days. The rest of the miners, approximately 690, remain in a Compute North warehouse pending a decision from the bankruptcy court or a communication from Compute North. The company is in constant contact with the new operator and continues to reach out to Compute North to gain access to our miners at their facility.

BitFuFu Miner Update

As a result of the restructured purchase agreement with BitFuFu, around 11,850 S19J Pro 104T miners are on their way to the US from the provider. Delivery is expected in January, pending holiday-related delays. Given the economic and geographic issues plaguing the industry due to energy and cryptocurrency market volatility, we are exploring a diversified hosting strategy.

Update of Bitcoin production and inventory

In November 2022, Sphere 3D produced 10.28 Bitcoin, or 0.34 per day. Sphere 3D’s mining fleet operated at an efficiency of 105.2 BTC/EH and averaged approximately 98 percent uptime during the month. The corresponding approximate value of the company’s output in November 2022, based on a Bitcoin price of $17,142 on November 30, 2022, was $179,107. Daily production volume was flat compared to October 2022.

Since the company started its mining operations during the first quarter of 2022, it has produced 113.08 Bitcoin and held 90.34 Bitcoin as of November 30, 2022. The Bitcoin held by the company represents a fair market value of about $1.6 million based on the Bitcoin price of 17,420 dollars on 30 November 2022. As of 30 November 2022, the company operated approx. 1000 S19j Pros miners who delivered a production capacity of approx. 100 PH/s.

The company continues to use a HODL strategy for most of its holdings. The company used approximately 4.86 Bitcoin during the month to fund working capital.

Bitcoin production and inventory

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Company updates

On 8 November 2022, the company announced an agreement with Hertford Advisors Ltd. to cancel 36,000, or 37.5%, of Sphere 3D Series H preferred stock without payment of cash consideration. The Series H preferred shares were issued to Hertford pursuant to a purchase agreement dated July 31, 2021, and are each convertible into 1,000 common shares. Cancellation of the shares significantly reduces the dilutive effect of the preference shares in series H on holders of the company’s ordinary shares. Hertford retains 60,000 H preference shares, which are non-voting and do not accrue dividends.

The conversion of the H preference shares into ordinary shares is subject to the approval of the Sphere 3D shareholders at the company’s forthcoming ordinary general meeting (AGM) scheduled for 20 December 2022, subject to the terms and conditions of the company’s articles of association. As part of the agreement, Hertford and other named persons agreed to certain customary voting and standstill provisions for a period ending 45 days after the company’s annual general meeting in 2023.

In November, Sphere 3D moved to further strengthen the board. Susan Harnett, an experienced senior executive with tier one financial companies, a FinTech expert who advises and guides digital startups, and an advocate for women executives and women-led companies, joined the company’s board as an independent director.

David Danziger, CPA, CA, will be nominated for election to the board seat at Sphere 3D’s general meeting. Mr. Danziger has 42 years of experience completing significant transactions and assisting with complex accounting and regulatory matters as audit partner and compliance counsel for several public companies. He has sat on the board of public companies in the traditional mining and fintech industries.

The CEO’s final comment

“We continue to navigate industry upheaval, the depressed price of bitcoin and the challenges affecting all crypto mining firms. Sphere 3D is fortunate to have no exposure to the bankruptcy of FTX Trading Ltd. or the companies associated with that bankruptcy,” it added. Trumpeter.

“The key to ensuring Sphere 3D’s success over the coming months will be to maintain our conservative strategy coupled with sensible growth so that we do not ‘get over our skis.'” The company is now well positioned to navigate and ultimately capitalize on the compressed crypto economy.”

Annual general meeting

Sphere 3D’s annual general meeting is scheduled to be held on or about December 20, 2022. Meeting materials are available for review at docs.tsxtrust.com/2040 and under the company’s SEDAR and EDGAR profile at www.sedar.com and www.sec. respectively gov. On or about November 18, 2022, materials were sent to shareholders on November 8, 2022.

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 rapidly growing its industrial-scale mining operations 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”, “expects”, “plans”, “anticipates”, “could”, “intends”, “goals” , “projects”, “considers”, “believes”, “estimates”, “anticipates”, “potential” or “continue” or the negative of these words or other similar terms or expressions. Expectations and beliefs regarding matters discussed herein may 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 the SEC from time to time and available at www.sec.gov These forward-looking statements are based rt on current expectations, which are subject to change.

Sphere 3D contacts

NMN advisors
[email protected]

Kurt Kalbfleisch, CFO, Sphere 3D
[email protected]