Sphere 3D Reports Fiscal Year 2024 Financial Results and Operational Updates
Sphere 3D (NASDAQ: ANY) reported its fiscal year 2024 financial results, marking a year of transition following the Bitcoin halving. The company generated revenues of $16.6 million in 2024, down from $21.9 million in 2023, while reducing operating costs to $38.0 million from $51.9 million. Net loss decreased to $9.5 million ($0.48 per share) from $23.4 million in 2023.
Key developments include:
- Replacement of 25% of S19j Pro miners with newer S19 XPs and S21 Bitmain miners, increasing hashrate by 40-100%
- Registered direct offering of 4.2M common shares at $1.42 per share
- Partnership with Simple Mining for Iowa mining site development
- Settlement agreements with Core Scientific and Gryphon Digital Mining
- As of December 31, 2024, held 14.9 Bitcoin valued at approximately $1.4 million
Sphere 3D (NASDAQ: ANY) ha riportato i risultati finanziari per l'anno fiscale 2024, segnando un anno di transizione dopo il dimezzamento del Bitcoin. L'azienda ha generato ricavi di 16,6 milioni di dollari nel 2024, in calo rispetto ai 21,9 milioni di dollari del 2023, mentre ha ridotto i costi operativi a 38,0 milioni di dollari rispetto ai 51,9 milioni di dollari. La perdita netta è diminuita a 9,5 milioni di dollari (0,48 dollari per azione) rispetto ai 23,4 milioni di dollari del 2023.
Sviluppi chiave includono:
- Sostituzione del 25% dei miner S19j Pro con i più recenti miner S19 XP e S21 di Bitmain, aumentando il hashrate del 40-100%
- Offerta diretta registrata di 4,2 milioni di azioni comuni a 1,42 dollari per azione
- Partnership con Simple Mining per lo sviluppo del sito minerario in Iowa
- Accordi di risoluzione con Core Scientific e Gryphon Digital Mining
- Al 31 dicembre 2024, possedeva 14,9 Bitcoin valutati circa 1,4 milioni di dollari
Sphere 3D (NASDAQ: ANY) reportó sus resultados financieros para el año fiscal 2024, marcando un año de transición tras la reducción a la mitad de Bitcoin. La compañía generó ingresos de 16,6 millones de dólares en 2024, una disminución respecto a los 21,9 millones de dólares en 2023, mientras reducía los costos operativos a 38,0 millones de dólares desde 51,9 millones de dólares. La pérdida neta se redujo a 9,5 millones de dólares (0,48 dólares por acción) desde los 23,4 millones de dólares en 2023.
Desarrollos clave incluyen:
- Sustitución del 25% de los mineros S19j Pro por los más nuevos mineros S19 XP y S21 de Bitmain, aumentando la tasa de hash entre un 40-100%
- Oferta directa registrada de 4,2 millones de acciones comunes a 1,42 dólares por acción
- Asociación con Simple Mining para el desarrollo del sitio de minería en Iowa
- Acuerdos de liquidación con Core Scientific y Gryphon Digital Mining
- Al 31 de diciembre de 2024, poseía 14,9 Bitcoin valorados en aproximadamente 1,4 millones de dólares
Sphere 3D (NASDAQ: ANY)는 비트코인 반감기 이후 전환의 해를 맞이하며 2024 회계연도 재무 결과를 발표했습니다. 이 회사는 2024년에 1,660만 달러의 수익을 올렸으며, 이는 2023년의 2,190만 달러에서 감소한 수치입니다. 운영 비용은 3,800만 달러로 줄어들었으며, 이는 5,190만 달러에서 감소한 것입니다. 순손실은 950만 달러 (주당 0.48 달러)로 감소했으며, 이는 2023년의 2,340만 달러에서 줄어든 것입니다.
주요 발전 사항은 다음과 같습니다:
- S19j Pro 채굴기 25%를 최신 S19 XP 및 S21 Bitmain 채굴기로 교체하여 해시레이트를 40-100% 증가시켰습니다.
- 주당 1.42달러에 420만 주의 보통주를 등록된 직접 제공으로 발행했습니다.
- 아이오와의 채굴 사이트 개발을 위한 Simple Mining과의 파트너십을 체결했습니다.
- Core Scientific 및 Gryphon Digital Mining과의 합의 계약을 체결했습니다.
- 2024년 12월 31일 기준으로 약 140만 달러에 해당하는 14.9 비트코인을 보유하고 있었습니다.
Sphere 3D (NASDAQ: ANY) a publié ses résultats financiers pour l'exercice 2024, marquant une année de transition après la réduction de moitié du Bitcoin. L'entreprise a généré des revenus de 16,6 millions de dollars en 2024, en baisse par rapport à 21,9 millions de dollars en 2023, tout en réduisant ses coûts d'exploitation à 38,0 millions de dollars contre 51,9 millions de dollars. La perte nette a diminué à 9,5 millions de dollars (0,48 dollar par action) contre 23,4 millions de dollars en 2023.
Les développements clés incluent:
- Remplacement de 25 % des mineurs S19j Pro par de nouveaux mineurs S19 XP et S21 de Bitmain, augmentant le taux de hachage de 40 à 100 %
- Offre directe enregistrée de 4,2 millions d'actions ordinaires à 1,42 dollar par action
- Partenariat avec Simple Mining pour le développement du site minier en Iowa
- Accords de règlement avec Core Scientific et Gryphon Digital Mining
- Au 31 décembre 2024, l'entreprise détenait 14,9 Bitcoin d'une valeur d'environ 1,4 million de dollars
Sphere 3D (NASDAQ: ANY) hat seine finanziellen Ergebnisse für das Geschäftsjahr 2024 veröffentlicht, das ein Jahr des Übergangs nach der Bitcoin-Halbierung markiert. Das Unternehmen erzielte 2024 Einnahmen von 16,6 Millionen Dollar, ein Rückgang von 21,9 Millionen Dollar im Jahr 2023, während die Betriebskosten auf 38,0 Millionen Dollar von 51,9 Millionen Dollar gesenkt wurden. Der Nettoverlust verringerte sich auf 9,5 Millionen Dollar (0,48 Dollar pro Aktie) von 23,4 Millionen Dollar im Jahr 2023.
Wichtige Entwicklungen umfassen:
- Ersetzung von 25% der S19j Pro Miner durch neuere S19 XPs und S21 Bitmain Miner, was die Hashrate um 40-100% erhöht
- Registrierte Direktplatzierung von 4,2 Millionen Stammaktien zu 1,42 Dollar pro Aktie
- Partnerschaft mit Simple Mining zur Entwicklung des Bergbaustandorts in Iowa
- Vergleichsvereinbarungen mit Core Scientific und Gryphon Digital Mining
- Zum 31. Dezember 2024 hielt das Unternehmen 14,9 Bitcoin im Wert von etwa 1,4 Millionen Dollar
- Operating costs reduced by 26.8% to $38.0 million
- Net loss decreased by 59.4% to $9.5 million
- 40-100% hashrate increase from miner upgrade
- Successful $6 million capital raise at $1.42 per share
- Received $2.4 million settlement from Rebel Mining Company
- Revenue declined 24.2% to $16.6 million in 2024
- Bitcoin holdings relatively low at 14.9 BTC
- Potential shareholder dilution from 4.2M share offering
- Operating expenses still exceed revenue by significant margin
Insights
Sphere 3D's FY2024 results reflect an expected transitional period following the April 2024 Bitcoin halving, with revenue declining 24.2% to $16.6 million from $21.9 million in FY2023. However, the company managed to reduce its net loss to $9.5 million ($0.48 per share) from $23.4 million ($1.93 per share) year-over-year, demonstrating improved cost management despite challenging industry conditions.
The company's strategic pivot toward vertical integration through the Iowa facility partnership with Simple Mining represents a critical shift in their business model. By moving away from high-cost hosting providers, Sphere 3D aims to gain more control over operational expenses and improve margins. The recent $2.4 million settlement from Rebel Mining further validates this strategic direction.
Equipment modernization is underway with the replacement of approximately 25% of S19j Pro miners with newer S19 XPs and S21 models, increasing hashrate by 40-100% for the upgraded portion. This enhances computational efficiency per unit of energy consumed - crucial in the post-halving environment where mining rewards have been cut in half.
The November 2024 capital raise at
The succession of legal settlements (Core Scientific, Gryphon Digital Mining) clears potential liabilities and allows management to focus on operational transformation, though each took resources to resolve. The path to profitability remains challenging, requiring significant execution on their vertical integration strategy throughout 2025.
Sphere 3D's performance echoes the industry-wide adjustment following the April 2024 halving that reduced block rewards from 6.25 to 3.125 BTC. The company's decision to refresh 25% of their fleet with higher-efficiency S19 XPs and S21 miners represents a critical adaptation, increasing hashrate density by 40-100% for the upgraded machines while likely improving energy efficiency - the key determinant of mining profitability post-halving.
Their strategic pivot toward infrastructure ownership through the Iowa site (energized March 2025) marks a fundamental shift from a capital-light to a more capital-intensive but potentially more profitable operating model. This vertical integration approach aligns with industry best practices among top-tier miners, as controlling the full stack from energy procurement to mining operations typically yields 20-30% better margins than third-party hosting arrangements.
Holding just 14.9 BTC in treasury is notably conservative compared to peers, suggesting either immediate liquidation of mined coins to cover operational expenses or insufficient mining capacity to accumulate meaningful reserves. With Sphere 3D's $11.7M market cap, their Bitcoin holdings represent only about 12% of company value, providing minimal exposure to BTC price appreciation compared to larger miners who maintain 30-50% of their market cap in Bitcoin holdings.
The termination of the Rebel Mining relationship with a
Stamford, Connecticut--(Newsfile Corp. - March 28, 2025) - Sphere 3D Corp. (NASDAQ: ANY) ("Sphere 3D" or the "Company"), a Bitcoin mining company, is pleased to announce financial results for its fiscal year ended December 31, 2024.
COMMENTS FROM SPHERE 3D LEADERSHIP
2024 was a year of transition for Sphere 3D. Following the Bitcoin halving in the first half of the year, we focused on cycling out of high-cost hosting partners, streamlining SG&A expenses, and laying the groundwork for vertical integration. Every four years, the halving marks a pivotal moment for Bitcoin mining companies. As an operations-driven business, long-term strategies often take time to show results, but we are pleased with the direction we are heading. Our move toward owning and operating our own infrastructure marks a major milestone. The launch of our first site in March 2025 signals a meaningful shift in our strategic focus.
2024 HIGHLIGHTS
- During the fourth quarter of 2024, the Company replaced approximately
25% of its S19j Pro miners with newer generation S19 XPs and S21 Bitmain miners, which increased the nameplate hashrate related to those miners by40% and100% respectively. - In November 2024, the Company entered into a securities purchase agreement with a single institutional investor for the issuance and sale of 4,225,353 of its common shares in a registered direct offering at a purchase price of
$1.42 per share. In a concurrent private placement, the Company also agreed to issue to the same investor warrants to purchase up to 4,225,353 of its common shares the warrants have an exercise price of$1.50 per share. - In September 2024, the Company partnered with Simple Mining LLC to engineer, develop and operate a mining site in Iowa, signaling the transition to vertical integration, which was completed in March 2025.
- In April 2024, a Bitcoin halving event occurred on the Bitcoin network. Halving is a key part of the Bitcoin protocol and serves to control the overall supply and reduce the risk of inflation in digital assets using a proof-of-work consensus algorithm. The Bitcoin halving event reduced the block subsidy by half from 6.25 to 3.125 Bitcoin per block.
- In January 2024, we reached a settlement agreement with Core Scientific, which was approved by a United States Bankruptcy Judge on January 16, 2024 as part of Core Scientific's emergence from bankruptcy, for
$10.0 million of Core Scientific's equity.
BITCOIN ASSET AND VALUE
As of December 31, 2024, the Company had a self-mined Bitcoin balance of 14.9 with a carrying value of approximately
FISCAL YEAR 2024 FINANCIAL RESULTS
- The Company generated revenues of
$16.6 million in fiscal year 2024 compared to$21.9 million in fiscal year 2023 reflective of the Company's actions beginning in the third quarter of 2024, removing certain older mining equipment and replacing it with newer generation miners. This is expected to be an ongoing process through 2025, which may result in further fluctuations in exahash. There was also a decrease in revenues of$2.2 million related to the Company's former Service and Product segment which was sold in December 2023. - Operating costs and expenses for fiscal year 2024 decreased to
$38.0 million , compared to$51.9 million for fiscal year 2023. - The net loss available to common shareholders in fiscal year 2024 decreased to
$9.5 million , or a net loss of$0.48 per share, compared to a net loss available to common shareholders of$23.4 million , or a net loss of$1.93 per share, in fiscal year 2023.
RECENT CORPORATE DEVELOPMENTS
- In March 2025, we reached a settlement with Gryphon Digital Mining, Inc. to resolve all claims against each other on mutually satisfactory terms which resulted in the complete dismissal of outstanding litigation. Sphere 3D made no payments under the settlement agreement.
- In March 2025, our new hosting site in Iowa was fully energized, and Sphere entered into a Managed Services Agreement with Simple Mining to operate the site on our behalf.
- In January 2025, we ended our hosting agreement with Rebel Mining Company LLC and agreed to a termination and settlement amount of
$2.4 million payable to us in satisfaction of all obligations of the Rebel hosting agreement, and it constitutes a final settlement of all amounts owed by either party.
ABOUT SPHERE 3D
Sphere 3D Corp. (NASDAQ: ANY) is a cryptocurrency miner, growing its industrial-scale digital asset 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 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," "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, 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
| SPHERE 3D CORP. | ||||||
| CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||
| (In thousands of U.S. dollars, except share and per share amounts) | ||||||
| Year Ended | ||||||
| December 31, | ||||||
| 2024 | 2023 | |||||
| Revenues: | (Unaudited) | |||||
| Bitcoin mining revenue | $ | 16,608 | $ | 19,730 | ||
| Service and product revenue | - | 2,176 | ||||
| Total revenues | 16,608 | 21,906 | ||||
| Operating costs and expenses: | ||||||
| Cost of Bitcoin mining revenue (exclusive of depreciation and amortization | ||||||
| shown below) | 13,378 | 15,031 | ||||
| Cost of service and product revenue | - | 913 | ||||
| Sales and marketing | - | 948 | ||||
| Research and development | - | 1,026 | ||||
| General and administrative | 12,445 | 15,825 | ||||
| Depreciation and amortization | 7,113 | 6,190 | ||||
| Loss on disposal of property and equipment | 3,545 | 960 | ||||
| Impairment of property and equipment | 1,146 | - | ||||
| Impairment of other assets | 1,074 | - | ||||
| Change in fair value of Bitcoin | (682 | ) | - | |||
| Provision for losses on deposits due to vendor bankruptcy filings | - | 8,509 | ||||
| Impairment of acquired intangible assets | - | 2,952 | ||||
| Realized gain on sale of Bitcoin | - | (1,131 | ) | |||
| Impairment of Bitcoin | - | 682 | ||||
| Total operating expenses | 38,019 | 51,905 | ||||
| Loss from operations | (21,411 | ) | (29,999 | ) | ||
| Other income (expense): | ||||||
| Investment income | 8,980 | - | ||||
| Other income, net | 3,111 | 1,062 | ||||
| Gain on deconsolidation of SPAC | - | 6,140 | ||||
| Interest expense | - | (1,183 | ) | |||
| Gain on disposal of service and product segment - related party | - | 663 | ||||
| Loss before income taxes | (9,320 | ) | (23,317 | ) | ||
| Provision for income taxes | 150 | 13 | ||||
| Net loss | (9,470 | ) | (23,330 | ) | ||
| Less: Non-controlling interest - income | - | 76 | ||||
| Net loss attributable to common shareholders | $ | (9,470 | ) | $ | (23,406 | ) |
| Net loss per share: | ||||||
| Basic and diluted | $ | (0.48 | ) | $ | (1.93 | ) |
| Shares used in computing net loss per share: | ||||||
| Basic and diluted | 19,801,626 | 12,129,302 | ||||
| SPHERE 3D CORP. | ||||||
| CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||
| (In thousands of U.S. dollars) | ||||||
| December 31, | December 31, | |||||
| 2024 | 2023 | |||||
| (Unaudited) | (Unaudited) | |||||
| ASSETS | ||||||
| Cash and cash equivalents | $ | 5,425 | $ | 586 | ||
| Bitcoin | 1,394 | 986 | ||||
| Investment in equity securities | 7,530 | - | ||||
| Other current assets | 3,438 | 11,938 | ||||
| Total current assets | 17,787 | 13,510 | ||||
| Property and equipment, net | 21,967 | 24,166 | ||||
| Intangible assets, net | 3,095 | 4,581 | ||||
| Other non-current assets | 379 | 3,406 | ||||
| Total assets | $ | 43,228 | $ | 45,663 | ||
| LIABILITIES, TEMPORARY EQUITY AND SHAREHOLDERS' EQUITY | ||||||
| Current liabilities | $ | 3,895 | $ | 5,346 | ||
| Total temporary equity | 18 | 13,794 | ||||
| Total shareholders' equity | 39,315 | 26,523 | ||||
| Total liabilities, temporary equity, and shareholders' equity | $ | 43,228 | $ | 45,663 | ||
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/246514
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