Sphere 3D Corp. offers Bitcoin production and mining updates for September 2022
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The company’s production capacity is set to grow by 400% with the installation and activation of 2,946 miners released from US Customs
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Production for the month was 11.06 Bitcoin
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Total Bitcoin holding was 78.06
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The operation achieved 122 BTC/EH efficiency
Toronto, Ontario–(Newsfile Corp. – October 6, 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 results of its Bitcoin mining operations as of September 30, 2022.
The CEO’s comments
“Sphere 3D made great progress in September. As previously mentioned, we secured the release of all our S19j Pros from US Customs. Of the 4,026 additional miners now landed, 540 are installed and awaiting energy. We expect the remaining miners to be installed will begin in early October 2022 and will be activated at Compute North’s Texas site. No time frame has been provided by Compute North, but we expect an energy status update in the coming weeks.”
Miner supplies and Petahash capacity
Activation of the 4,026 miners dispatched over the past three months should increase the company’s production capacity by more than 400 percent compared to Sphere 3D’s August production levels announced on September 8, 2022. The installation and activation will bring the company’s production capacity to approximately 500 PH/ s and expand Sphere 3D’s mining fleet to more than 5,000 S19j miners.
Our discussions with FuFu Technologies to renegotiate our contract on September 21, 2021 have been productive. We have agreed in principle most of the commercial terms with Bitfufu and should have an update in the coming weeks on our final agreement.
Update of Bitcoin production and inventory
In September 2022, Sphere 3D produced 11.06 Bitcoin or 0.3686 Bitcoin per day. Sphere 3D’s mining fleet operated at 122 BTC/EH efficiency in September and averaged approximately 92 percent uptime. Daily production volume decreased compared to August 2022 due to an increase in difficulty of around 11.5 percent and one less day per month, a decrease of 3.3 percent all other things compared to August, according to HC Wainwright’s BTC Mining Weekly. The corresponding approximate value of the company’s production during September, based on a Bitcoin price of $19,415 on September 30, 2022, was $215,000.
Since the company started its mining operations during the first quarter of 2022, it has produced 91.87 Bitcoin and held 78.06 Bitcoin as of September 30, 2022. The Bitcoin held by the company represents a fair market value of about $1.52 million based on the Bitcoin price of 19,415 dollars on 30 September 2022. As of 30 September 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 difference between Bitcoin mined and Sphere 3D’s holdings is the amount Sphere 3D used to fund working capital.
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Statement on Compute North’s Chapter 11 Filing
Sphere 3D executives are in communication with Compute North regarding the Chapter 11 filing. Compute North has given assurances that the filing will have no impact on Sphere 3D’s mining fleet as they intend to continue operations as normal. Sphere 3D continues to monitor the situation.
The CEO’s final comment
“We are working with our partners to speed up the installation and energization of our reclaimed miners and get Sphere 3D’s fleet of around 5,000 miners hashing. Once activated, our production should jump significantly. Additionally, we expect to expand the fleet once Bitfufu contracts the restructuring has been completed Meanwhile, Bitcoin continues to show stability compared to other cryptocurrencies despite recently announced actions by the Federal Reserve and global market volatility.
“I have a positive outlook for the coming months with miners scheduled to be delivered, installed and energized in the coming quarter. With many of our industry peers still besieged by US customs delays, we feel fortunate to have secured the release of our miners, with caveat that because of the delay, we had to get ‘back in line’ for installation and energy. I believe the fourth quarter will be transformative for Sphere 3D, and we are well positioned for success.” said Patricia Trompeter, CEO of Sphere 3D.
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 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,” “expect,” “plan,” “assume,” “could,” “intend,” “goal,” ” projects”, “considers”, “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
NMN advisors
[email protected]
Kurt Kalbfleisch, CFO, Sphere 3D
[email protected]
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