Sphere 3D Reports First Quarter 2024 Financial Results
Sphere 3D, a Bitcoin mining company, announced its Q1 2024 financial results. Revenue increased by 130% to $6.9 million, and Bitcoin production rose to 144.8 BTC, compared to 110.3 BTC in Q1 2023. Despite these gains, the net loss was $4.5 million, or $0.27 per share, up from $3.5 million, or $0.34 per share, in Q1 2023. Operating expenses rose to $8.8 million, with depreciation costs at $1.8 million. Sphere 3D plans to refresh its fleet with more efficient machines in 2024 to improve profitability. The company ended the quarter with a hashrate of 1.3 EH/s.
- Revenue increased by 130% to $6.9 million in Q1 2024.
- Bitcoin production rose to 144.8 BTC, up from 110.3 BTC in Q1 2023.
- Digital mining revenue surged 175% to $6.9 million.
- Net loss from operations decreased to $1.9 million from $3.7 million in Q1 2023.
- Net loss increased to $4.5 million, or $0.27 per share, from $3.5 million, or $0.34 per share, in Q1 2023.
- Operating costs and expenses rose to $8.8 million, up from $6.8 million.
- Depreciation and amortization costs increased to $1.8 million from $1.0 million.
- Unrealized loss of $2.7 million recognized on investment in equity securities.
Insights
Sphere 3D's financial results for the first quarter of 2024 provide a mixed picture. The company reported a 130% increase in revenue to $6.9 million compared to the first quarter of 2023. This is a significant achievement, primarily driven by a 175% increase in digital mining revenue. Moreover, the number of Bitcoin mined also increased from 110.3 to 144.8, showcasing operational growth.
However, it’s important to note that the operating costs and expenses also rose, reaching $8.8 million from $6.8 million in the same period the previous year. Despite the revenue growth, the company still reported a net loss of $4.5 million, or $0.27 per share, though this is an improvement from the $3.5 million net loss (or $0.34 per share) reported in Q1 2023. The unrealized loss of $2.7 million on investment securities adds another layer of complexity to the financial results.
Investors should watch how Sphere 3D manages its operational costs while scaling its mining operations. The planned fleet refresh with newer-gen machines aimed at increasing efficiency could potentially reduce operating expenses in the long run, but the initial capital expenditure might pressure short-term financials.
The CEO’s comments about refreshing the fleet with newer-generation machines to increase efficiency are noteworthy. Efficient machines typically use less power and can generate more Bitcoin, which could lead to higher margins. Given the volatile nature of Bitcoin prices, operational efficiency is important for sustaining profitability.
The company’s current hashrate of 1.3 EH/s indicates its substantial mining capacity, but keeping up with technological advancements in mining hardware is essential to stay competitive. The phased approach to upgrading their fleet can make the transition smoother, minimizing downtime and ensuring continuous operations.
This strategic move aims not just at short-term gains but sustaining long-term operational efficiency, which could eventually improve profitability and shareholder value.
Stamford, Connecticut--(Newsfile Corp. - May 13, 2024) - Sphere 3D Corp. (NASDAQ: ANY) ("Sphere 3D"), a Bitcoin mining company operating at an industrial scale, today reported financial results for the first quarter of FY 2024 ended March 31, 2024.
2024 First Quarter Highlights and Recent Developments
Revenue increased to
$6.9 million during the quarter ended March 31, 2024.Sphere 3D mined 144.8 Bitcoin during the quarter ended March 31, 2024.
Sphere 3D ended the quarter with 1.3 EH/s.
CEO Comments
"As we move past the first quarter of 2024, and the bitcoin halving, we are proactively strategizing for Sphere 3D's' future growth," said Patricia Trompeter, CEO of Sphere 3D. "During 2024, we intend to refresh a significant portion of our fleet with newer-gen machines to bolster our efficiency. We expect this to lead to greater gross profits given that more efficient machines typically use less power and generate more bitcoin. We expect to start the process of removing the older machines during the second quarter and to begin replacing them with newer generation machines, continuing in a phased approach over remainder of the year."
Hashrate Update
Sphere 3D had approximately 1.3 EH/s hosted at March 31, 2024.
First Quarter FY 2024 Financial Results
Bitcoin production during the first quarter of 2024 was 144.8 Bitcoin, compared to 110.3 Bitcoin for the first quarter of 2023.
Revenue increased
130% to$6.9 million for the first quarter, compared to$3.0 million for the first quarter of 2023.Operating costs and expenses for the quarter were
$8.8 million , compared to$6.8 million for the first quarter of 2023.Digital mining revenue increased
175% for the first quarter of 2024 to$6.9 million , compared to$2.5 million for the first quarter of 2023.Depreciation and amortization was
$1.8 million , compared to$1.0 million for the first quarter of 2023.Net loss from operations decreased from
$3.7 million in the first quarter of 2023 to$1.9 million for the first quarter of 2024.Net loss was
$4.5 million , or a net loss of$0.27 per share, compared to a net loss of$3.5 million , or a net loss of$0.34 per share, for the first quarter of 2023.Unrealized loss of
$2.7 million recognized during the first quarter of 2024 on investment in equity securities acquired through the Core settlement.
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. 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," "target," "projects," "contemplates," "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 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 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 Contact
Kurt Kalbfleisch, CFO, Sphere 3D
Investor.relations@sphere3d.com
SPHERE 3D CORP.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands of U.S. dollars, except share and per share amounts)
| Three Months Ended | |||||||
| March 31, | |||||||
| Revenues: | 2024 | 2023 | |||||
| Bitcoin mining revenue | $ | 6,946 | $ | 2,524 | |||
| Service and product revenue | - | 502 | |||||
| Total revenues | 6,946 | 3,026 | |||||
| Operating costs and expenses: | |||||||
| Cost of Bitcoin mining revenue | 4,307 | 1,965 | |||||
| Cost of service and product revenue | - | 298 | |||||
| Sales and marketing | - | 274 | |||||
| Research and development | - | 270 | |||||
| General and administrative | 3,452 | 3,471 | |||||
| Depreciation and amortization | 1,821 | 1,025 | |||||
| Change in fair value of Bitcoin | (768 | ) | - | ||||
| Realized gain on sale of Bitcoin | - | (633 | ) | ||||
| Impairment of Bitcoin | - | 96 | |||||
| Total operating costs and expenses | 8,812 | 6,766 | |||||
| Loss from operations | (1,866 | ) | (3,740 | ) | |||
| Other income (expense): | |||||||
| Interest income and other income, net | 129 | 251 | |||||
| Unrealized loss on investment in equity securities | (2,740 | ) | - | ||||
| Net loss | (4,477 | ) | (3,489 | ) | |||
| Less: Non-controlling interest - income | - | 16 | |||||
| Net loss available to common shareholders | $ | (4,477 | ) | $ | (3,505 | ) | |
| Net loss per share: | |||||||
| Basic and diluted | $ | (0.27 | ) | $ | (0.34 | ) | |
| Shares used in computing net loss per share: | |||||||
| Basic and diluted | 16,576,914 | 10,291,965 | |||||
SPHERE 3D CORP.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands of U.S. dollars)
| March 31, | December 31, | ||||||
| 2024 | 2023 | ||||||
| (Unaudited) | (Unaudited) | ||||||
| ASSETS | |||||||
| Cash and cash equivalents | $ | 2,050 | $ | 586 | |||
| Digital assets, net | 127 | 986 | |||||
| Investment in equity securities | 7,260 | - | |||||
| Other current assets | 1,981 | 11,938 | |||||
| Total current assets | 11,418 | 13,510 | |||||
| Property and equipment, net | 22,717 | 24,166 | |||||
| Intangible assets, net | 4,210 | 4,581 | |||||
| Other non-current assets. | 3,605 | 3,406 | |||||
| Total assets | $ | 41,950 | $ | 45,663 | |||
| LIABILITIES, TEMPORARY EQUITY AND SHAREHOLDERS' EQUITY | |||||||
| Current liabilities | 5,007 | $ | 5,346 | ||||
| Total temporary equity | 9,467 | 13,794 | |||||
| Total shareholders' equity | 27,476 | 26,523 | |||||
| Total liabilities, temporary equity, and shareholders' equity | $ | 41,950 | $ | 45,663 | |||
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/208970
FAQ
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