TORONTO – (BUSINESS WIRE) – Sphere 3D Corp. (“Sphere 3D” or “The Company”) (Nasdaq: ANY), dedicated to becoming the leading carbon-neutral Bitcoin mining company operating on an industrial scale, provides results of its Bitcoin mining per. June 30, 2022.
The CEO’s comments
“The current political and economic environment is affecting all financial markets, including cryptocurrency. In June, the price of Bitcoin fell to a low of around $ 17,500 according to the Coinbase Exchange, the lowest level since the end of 2020. Some analysts and analysts speculate that recent price declines indicates that we are entering a crypto bear market, and some are predicting cryptocurrency prices may remain down for an extended period of time.
“Even with the current Bitcoin trading price, it is still profitable for Sphere 3D to continue mining. Sphere 3D’s mining fleet includes the most efficient miners currently available, and our favorable energy agreements will enable us to continue producing even if Bitcoin If market conditions persist, companies with less efficient miners or less favorable energy contracts may be forced to produce Bitcoin at a loss or shut down their machines and wait for prices to pick up again.
“Lower crypto prices are already exerting significant negative pressure on the prices of cryptocurrency mining machines. There are reports that manufacturers have large stocks of unfinanced miners, which could put even more downward pressure on the market. That is why we are working with our partner BitFuFu Technology (‘BitFuFu’) to optimize the agreement we entered into and announced in September 2021 to make it fairer for both organizations.
“The Sphere 3D team is considering all options to ensure our long – term mining success and create value for our shareholders. Recent actions by the Federal Reserve to meet inflationary pressures have delayed our efforts to secure financing for our mining fleet on favorable terms. Although we will continue to work with banking partners to arrange favorable financing, we do not expect to reach an agreement until the end of the fourth quarter that could lead to the delivery of deliveries of additional miners into the future, which we understand is in accordance with the steps taken. by other crypto-mining companies. ”
Update of Bitcoin production and inventory
From June 1, 2022, through June 30, 2022, Sphere 3Ds mining produced 12.19 Bitcoin, or an average of 0.41 Bitcoin daily. The daily production level remained flat compared to May 2022. The corresponding approximate valuation of the company’s production, based on a Bitcoin price of $ 19,889 on June 30, 2022, was approximately $ 242,500 for the month.
Since the company started its mining operations during the first quarter of 2022, it has produced 55.26 coins and held 49.23 Bitcoin on June 30, 2022. This represented a valuation of around $ 1.0 million based on the Bitcoin price of $ 19,889 June 30, 2022.
The company continues to use a HODL strategy and has not liquidated Bitcoin since mining began. The difference between the number of Bitcoin mined versus the stock is Bitcoin Sphere 3D which is used to pay operating expenses to partners.
Miner supplies and Petahash capacity
As of 30 June 2022, the company operated approximately 1000 S19j Pros miners who delivered a production capacity of around 100 PH / s. Sphere 3D’s mining fleet operated with 128 BTC / EH efficiency in June and averaged 97 percent uptime.
Sphere 3D expects to take delivery of around 4,000 (400 PH / s) new S19j Pros from BitFuFu, Bitmain’s global strategic arm, during July 2022. Miners are scheduled to arrive in several shipments and arrive in early July. Once received, the teams will distribute the miners as quickly as possible. The company originally expected the shipments to arrive in early June 2022, but supply chain and shipping problems delayed delivery. We work closely with our partners to ensure that future orders are sent and received according to schedule.
Although we expect to see an incremental increase in production in July 2022, not all miners are expected to be fully operational during the month. Production in August 2022 should increase significantly due to the supply of approximately 400 PH / s production to our mining operations between now and the end of August 2022. With the addition of the new miners, we expect our production capacity to grow to around 500 PH / S.
NuMiner Global, Inc.. (“NuMiner”) did not meet the June 30, 2022 deadline to deliver and test the 12 pre-production miners required in the contract with the company. NuMiner representatives stated that supply chain problems prevented them from producing the machines. As a result, we have canceled our order and requested to return the company’s $ 10 million deposit.
Business update
On June 20, 2022, the company completed an employment agreement with Kurt Kalbfleisch to continue his employment as CFO of Sphere 3D. The one-year agreement entered into force on 20 June 2022. The contract will automatically be extended for an additional one-year period unless terminated by one of the parties no less than 90 days before the renewal date.
On May 23, 2022, Patricia Trompeter, CEO of Sphere 3D, participated in Maxim Group LLC’s conference on Digital Assets: Exploring The Metaverse And Crypto Assets. Ms. Trumpets was discussed in the Cryptocurrency Mining panel, where she shared her insights on current cryptocurrency markets, mining in a turbulent, inflation-rich market, and the availability and pricing of cryptocurrency miners. She also shared her insights on Bitcoin mining in a bear market on The Crypto Conversation podcast on the Brave New Coin website.
Ms. Trumpets will be featured on Women engaged in mining panel at Mining Disrupt, the world’s largest Bitcoin mining exhibition to be held 26-29. July 2022. She will join several other female leaders in the mining industry as part of an “all-woman unscripted discussion panel on women’s drive and leading innovation in the Bitcoin mining area.”
CEO final reflection on her first eight weeks
“During my time at GE Capital, I had the privilege of being on the audit staff. It was a management training area that focused on auditing, process improvement and turnaround operations in various GE companies. We practically lived on the road, spending four months in each business learning its inner functions, figuring out the problems that hold it back, making recommendations to increase value, and then helping the management team implement the recommendations.
«The next quarter it went to another company, another country / state / city that worked 12-15 hour days. It was the biggest job ever, especially working with the companies GE had just acquired, where our job was to separate them, clean them up, leverage synergies and put them back together to position them for growth.
It is with the same passion, energy and drive that I approach Sphere 3D. That is, to decide what steps we take to position the company to be lean and agile, so that we can easily navigate the macroeconomic forces while we positions the organization for rapid growth as factors improve.I am laser focused on this challenge and on creating value for my co-shareholders.I want to share more about our efforts in the coming months.I am very excited about the challenge and future of Sphere 3D.Thanks for that you joined me on this journey. ”
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 mining operations on an industrial scale through capital-efficient acquisitions of next-generation mining equipment and collaboration with the class’ best data center operators. Sphere 3D has a capacity of 6.0 EH / s under contract for deliveries. The company currently operates a fleet of approximately 1,000 miners and expects delivery of an additional 59,000 miners by the end of 2022 for a total hash capacity of 6.0 exahash. Sphere 3D is dedicated to increasing shareholder value while respecting its commitment to strict environmental, social and governance standards. For more information about the company, please visit Sphere3D.com.
Future-oriented statements
This communication contains forward-looking statements pursuant to Section 27A of the Securities Act, and Section 21E of the Securities Exchange Act of 1934, as amended. Future-oriented 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 “can”, “will”, “should”, “expect”, “plan”, “presuppose”, “could”, “intend” goal “,” projects »,« consider »,« think »,« estimate »,« predict »,« potential »or« continue »or the negative to these words or other similar terms or expressions. Expectations and beliefs regarding issues discussed here may not materialize, and actual results in future periods are subject to risk and uncertainty that may lead to actual results deviating significantly from those estimated. The forward-looking statements in this communication are also subject to other risks and uncertainties, including those more fully described in submissions to the SEC, including Sphere 3D’s reports filed on Form 20-F and Form 6-K and in other submissions 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.
