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

• Production grew month over month by 37.35 bitcoin

• The operation achieved 91.0 BTC/EH efficiency

• Uptime was 94% for March 2023

• Bitcoin produced 1Q23 was 110.25

Toronto, Ontario–(Newsfile Corp. – April 17, 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, provides results of its Bitcoin mining operations for the month ended March 31, 2023.

The CEO’s comments

“We produced bitcoin at a steady rate during March. We are proud to announce a partnership with Rebel Mining which will take a large portion of our fleet. Their depth and experience make them a perfect partner to deploy the rest of our fleet .. .With the miners currently deploying to Missouri in March and April, our fleet will be fully equipped and after energization we will be at approximately 1.5 EH/s We believe we will have a significant portion of this EH/ s energized by the end of May.” Said Patricia Trompeter, CEO of Sphere 3D. “We look forward to working with Rebel as we install and power the rest of our fleet.”

“Rebel Mining Company has state-of-the-art facilities managed by a world-class management team. We are excited to partner with Sphere 3D who will be deploying in our facilities in Missouri and Texas in the next 30 – 60 days. We look forward to having them energized and bring our depth of cryptomining knowledge to Sphere. Our commitment to our customers and a high operational standard set us apart in this industry, and we look forward to working together.” Said Neil Galloway, COO Rebel Mining.

Compute North Update

We continue to work with Compute North and their bankruptcy attorneys to recover our deposit through the Chapter 11 process. As previously disclosed, we filed our financial claim with the US Bankruptcy Court in February 2023 and we must wait for the process to continue.

Miner Delivery Update

We have started distribution to several host partners for May energisation. We are currently deploying miners to a facility in Missouri for expected energy supply in May. In addition, we expect to deploy the remaining fleet to an existing hosting within the next 60 days. With the above deployments, we will have succeeded in deploying the majority of our fleet.

The story continues

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. We continue to work with the US Bankruptcy Court to monitor progress. Sphere 3D has engaged counsel and is aggressively pursuing all available options to recover its money.

Update of Bitcoin production and inventory

In March 2023, Sphere 3D produced 37.35 Bitcoin, or 1.20 per day. Sphere 3D’s mining fleet operated at 91.0 BTC/EH efficiency.

During March 2023, the company used a hybrid strategy to liquidate during bitcoin price rallies and HODL the rest of its holdings. The company spent approximately 28.33 Bitcoin during the month to fund working capital, and prepaid hosting deposits for our S19J pros.

Bitcoin held by the Company represents a fair market value of approximately $0.6 million based on the Bitcoin price of $28,489 on March 31, 2023. As of March 31, 2023, the Company operated approximately 4,330 S19j Pros miners delivering a production capacity of approximately 446 PH/ pp.

Figure 1

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The CEO’s final comment

“We continue to make progress as we deploy the remainder of our fleet. Once fully energized we will increase our production to 1.5 EH/s. We focused on execution in March to prepare for a strong second quarter. I am excited to get all 1.5 EH/s up and running in the second quarter, and our efforts in the first quarter made this possible!”

About Sphere 3D

Sphere 3D Corp. (NASDAQ: ANY) is a net carbon neutral cryptocurrency miner with decades of proven expertise in enterprise data services. 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 10-K and Form 8-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]

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