Sphere 3D Corp. Provides June 2024 Update
Sphere 3D Corp. (NASDAQ: ANY), a Bitcoin mining company, has provided a strategic and operational update for June 2024. Key highlights include:
- 20.4 Bitcoin mined in June 2024
- Month-end deployed hash rate reached 1.2 EH/s
- First batch of fleet upgrade (Bitmain Antminer S21s) has arrived
- Mining revenue of $1.4 million
- Bitcoin holdings increased to 7.2
The company is progressing with its fleet refresh plan, gradually replacing older machines with the latest generation models. Sphere 3D is also pursuing strategic partnerships focused on vertical integration. CEO Patricia Trompeter emphasized the company's debt-free status and ongoing transformation efforts.
- Increased month-end deployed hash rate to 1.2 EH/s
- Mining revenue grew to $1.4 million in June 2024
- Bitcoin holdings increased to 7.2
- First batch of new generation Bitmain Antminer S21s arrived
- Company maintains debt-free status
- Bitcoin mined decreased from 65.1 in June 2023 to 20.4 in June 2024
- Operational issues with third-party hosting sites affecting production
- Short-term volatility expected in Bitcoin production during fleet refresh
Insights
Bitcoin mining revenue is a key metric for investors to watch and for June 2024, Sphere 3D reported
One noteworthy positive aspect is the increase in the deployed hash rate from 1.0 EH/s in June 2023 to 1.2 EH/s in June 2024, showing that the company is enhancing its mining power. However, the company’s strategic transition towards more efficient machines is crucial. The first batch of Bitmain Antminer S21s marks a significant upgrade and could potentially boost future productivity and profitability, but in the short term, this transition might introduce volatility in production.
Investors should also note the company's debt-free status, which provides financial flexibility. However, the reduced Bitcoin holdings (7.2 BTC) could be a concern, reflecting the necessity to sell mined Bitcoin to cover expenses.
The arrival of the Bitmain Antminer S21 units is a noteworthy development. These machines are among the newest and most efficient Bitcoin miners available. The S21s are designed to offer higher hash rates while consuming less power compared to older generation models, which means they can potentially improve Sphere 3D's operational efficiency and profitability. Efficiency in Bitcoin mining is predominantly determined by the energy consumption per terahash (TH) of computing power and more efficient models reduce overall operational costs by consuming less electricity for the same or even higher output.
This strategic upgrade of hardware is expected to enhance the company's long-term stability and increase gross margins. In the short term, however, the frequent replacement of machines might cause disruptions in mining operations. Yet, the upside of having a more modern and efficient fleet outweighs these temporary setbacks.
The company’s strategy of pursuing vertical integration by merging with another entity focused on similar goals is a smart move. Vertical integration can streamline operations and reduce dependency on third-party hosting sites, which Sphere 3D has identified as a strategic vulnerability. By controlling more aspects of their production chain, Sphere 3D can mitigate risks associated with external service providers and potentially lower costs over time.
However, mergers and acquisitions come with their own set of challenges, including integration issues and potential cultural clashes. The success of this strategy will depend on how smoothly the integration process is managed and whether the synergies from the merger translate into tangible operational advantages.
In the broader market context, the focus on vertical integration aligns with industry trends where companies seek greater control over their supply chains to enhance efficiency and reliability. Investors should watch for announcements on progress in these M&A activities as they could significantly impact Sphere 3D’s market positioning and operational capability.
Stamford, Connecticut--(Newsfile Corp. - July 18, 2024) - Sphere 3D Corp. (NASDAQ: ANY) ("Sphere 3D"), a Bitcoin mining company, is providing a strategic and operational update for June 2024.
Key Highlights
- First batch of fleet upgrade has arrived
- 20.4 Bitcoin mined in June 2024
- Month-end deployed hash rate was 1.2 EH/s
| Metrics | June 2023 | May 2024 | June 2024 |
| Bitcoin Mined | 65.1 | 20.4 | 20.4 |
| Bitcoin Sold | 67.2 | 20.5 | 15.7 |
| Mining Revenue | |||
| Bitcoin Holdings | 20.2 | 2.5 | 7.2 |
| Deployed Miners | ~9,995 | ~11,000 | ~11,400 |
| Month End Deployed Hash Rate (EH/s) | 1.0 EH/s | 1.1 EH/s | 1.2 EH/s |
Strategic Update
We continue to proactively focus on the company's future growth through operational growth and strategic partnerships:
- As previously announced, our plan is to gradually take older machines offline and replace them with the latest generation models throughout the remainder of the year. We are progressing with our fleet refresh by taking delivery of our first order of Bitmain Antminer S21s, which we expect to be operational in the next week or so. Our partners continue to assist with the divestiture of our older-generation fleet, while also providing the Company with all buying options for additional Bitmain Antminer S21s which the team is currently evaluating.
- With a concentrated goal of merging with a company focused on vertical integration, we are in the process of continuing discussions with several potential partners.
CEO Comments
"We continue to position the company for optimal outcomes by focusing on reducing our exposure to third parties and renewing our fleet. Our targeted M&A pursuits concentrating on vertical integration capabilities is moving along smoothly. With all transformations, things take time," explains Patricia Trompeter, CEO of Sphere 3D. She adds, "Our debt-free status combined with investments on our balance sheet are allowing us to transform the company with sustained success and productivity in a cogent, thoughtful way. We are excited as our first batch of new generation Bitmain Antminer S21s have arrived and we hope to have them online in the next week or two. We are looking forward to adding them to the fleet in July."
Production
As we execute the fleet refresh, we expect continued volatility in our Bitcoin production as machines come offline and are replaced with newer generation machines. In the short term, we will experience volatility with bitcoin production and energized exahash. In the long term, we expect it to lead to greater gross profits as we replace the fleet with more efficient machines. We expect these growing pains will be worth it in the long run as we transform the company.
The operational issues with third party hosting sites are further narrowing our focus to complete a merger where we can control our operations.
About Sphere 3D
Sphere 3D Corp. (NASDAQ: ANY) is a cryptocurrency miner growing its industrial-scale Bitcoin mining operation through the capital-efficient procurement of next-generation mining equipment and partnering with best-in-class data center operators. Sphere 3D is dedicated to growing shareholder value while honoring its commitment to strict environmental, social, and governance standards. For more information about Sphere 3D, 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. In some cases, you can identify forward-looking statements because they contain words such as "may," "will," "should," "experts," "plans," "anticipates," "could," "intends," "target," "project," "contemplates," "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 the projected. The forward-looking statements contained 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, Form 10-Q and Form 8-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 on current expectations, which are subject to change.
Sphere 3D Contacts
Kurt Kalbfleisch CFO, Sphere 3D
Investor.relations@sphere3d.com
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/216931
FAQ
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