Sphere 3D Reports Third Quarter 2023 Financial Results and Operational Updates
- Revenue increased by 322% year-over-year to $5.7 million, showcasing significant growth.
- Bitcoin production saw a substantial 396% increase, with 181.7 Bitcoin mined in Q3 2023.
- Digital mining revenue surged by 537% to $5.1 million, indicating a strong performance in this sector.
- Operating costs and expenses remained relatively stable, showing efficient cost management.
- The net loss attributable to common shareholders from operations decreased significantly, indicating improved financial health.
- None.
Toronto, Ontario--(Newsfile Corp. - November 13, 2023) - Sphere 3D Corp. (NASDAQ: ANY) ("Sphere 3D" or the "Company"), dedicated to becoming the leading carbon-neutral Bitcoin mining company operating at an industrial scale, today reported financial results for the third quarter ended September 30, 2023.
Q3 2023 Highlights
- Revenue increased
322% year-over-year to$5.7 million . - Mined 181.7 Bitcoin, representing a
396% increase year-over-year. - As of September 30, 2023, the Company had Bitcoin holdings of 16.5 with a market value of
$0.4 million .
CEO Comments
"I'm pleased to report that once again we delivered very strong results and made significant progress in our operations during the quarter," said Patricia Trompeter, CEO of Sphere 3D. "We increased our operating hashrate to 1.3 EH/s at the end of September 2023 from just under 0.1 EH/s in the same period last year. This resulted in an almost
Q3 2023 Financial Results:
- Bitcoin production was 181.7 Bitcoin, compared to 36.6 Bitcoin for Q3 2022, an increase of
396% .
- Total revenue was
$5.7 million , compared to$1.4 million for Q3 2022, an increase of307% .
- Digital mining revenue was
$5.1 million , compared to$0.8 million for Q3 2022, an increase of537% .
- Operating costs and expenses were
$12.1 million , compared to$11.7 million for Q3 2022.
- Cost of digital mining revenue was
$4.3 million , compared to$0.6 million for Q3 2022.
- Depreciation and amortization was
$2.0 million , compared to$7.4 million for Q3 2022.
- Net loss attributable to common shareholders from operations was
$6.3 million , or a net loss of$0.50 per share, compared to a net loss from operations of$20.5 million , or a net loss of$2.14 per share, for Q3 2022.
Nine Months Ended September 30, 2023 Financial Results:
- Bitcoin production during the first nine months of 2023 was 470.3 Bitcoin, compared to 91.9 Bitcoin for the first nine months of 2022, an increase of
412% . - Total revenue was
$14.2 million the first nine months of 2023, compared to$4.6 million for the first nine months of 2022, an increase of209% . - Digital mining revenue for the first nine months of 2023 was
$12.6 million , compared to$2.7 million for the first nine months of 2022, an increase of367% . - Operating costs and expenses for the first nine months of 2023 were
$29.1 million , compared to$45.5 million for the first nine months of 2022, a reduction of36% . - Cost of digital mining revenue for the first nine months of 2023 was
$10.3 million , compared to$1.5 million for the first nine months of 2022. - Depreciation and amortization, included in operating costs, was
$4.4 million for the first nine months of 2023, compared to$21.3 million for the first nine months of 2022. - Net loss attributable to common shareholders from operations was
$14.6 million , or a net loss of$1.29 per share for the first nine months of 2023, compared to a net loss from operations of$75.9 million , or a net loss of$8.08 per share, for the first nine months of 2022.
About Sphere 3D
Sphere 3D Corp. (NASDAQ: ANY) is a net carbon-neutral cryptocurrency miner with decades of proven enterprise data-services expertise. The Company is 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 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 | Nine Months Ended | ||||||||||||
| September 30, | September 30, | ||||||||||||
| 2023 | 2022 | | 2023 | 2022 | |||||||||
| Revenues: | (Unaudited) | (Unaudited) | |||||||||||
| Digital mining revenue.............................................................. | $ | 5,102 | $ | 787 | $ | 12,592 | $ | 2,745 | |||||
| Service and product revenue..................................................... | 622 | 569 | 1,624 | 1,904 | |||||||||
| Total revenues......................................................................... | 5,724 | 1,356 | 14,216 | 4,649 | |||||||||
| Operating costs and expenses: | |||||||||||||
| Cost of digital mining revenue................................................. | 4,292 | 553 | 10,331 | 1,527 | |||||||||
| Cost of service and product revenue........................................ | 221 | 296 | 728 | 996 | |||||||||
| Sales and marketing.............................................................. | 217 | 236 | 768 | 731 | |||||||||
| Research and development.................................................... | 362 | 139 | 859 | 392 | |||||||||
| General and administrative..................................................... | 3,399 | 2,930 | 10,504 | 19,687 | |||||||||
| Depreciation and amortization................................................ | 2,028 | 7,408 | 4,428 | 21,257 | |||||||||
| Impairment of acquired intangible assets................................. | 1,231 | - | 1,231 | - | |||||||||
| Loss on disposal of property and equipment............................ | 315 | - | 566 | - | |||||||||
| Realized gain on sale of digital assets..................................... | (136 | ) | (10 | ) | (908 | ) | (10) | ||||||
| Impairment of digital assets.................................................... | | 199 | 138 | 549 | 908 | ||||||||
| Total operating expenses | 12,128 | 11,690 | 29,056 | 45,488 | |||||||||
| Loss from operations............................................................... | (6,404 | ) | (10,334 | ) | (14,840 | ) | (40,839) | ||||||
| Other income (expense): | |||||||||||||
| Interest expense................................................................... | (10 | ) | - | (1,183 | ) | - | |||||||
| Interest income and other expense, net................................... | 100 | (68 | ) | 1,464 | 677 | ||||||||
| Provision for losses on deposit for mining equipment................ | - | (10,000 | ) | - | (10,000) | ||||||||
| Forgiveness of note receivable................................................ | - | - | - | (13,145) | |||||||||
| Impairment of investments...................................................... | - | - | - | (12,429) | |||||||||
| Loss before income taxes………………………………………….... | (6,314 | ) | (20,402 | ) | (14,559 | ) | (75,736) | ||||||
| Provision for income taxes….................................................... | - | 121 | 4 | 121 | |||||||||
| Net loss………………………………………………………………… | (6,314 | ) | (20,523 | ) | (14,563 | ) | (75,857) | ||||||
| Less: Non-controlling interest - (loss) income…………………… | (7 | ) | - | 76 | - | ||||||||
| Net loss attributable to common shareholders…………………… | $ | (6,307 | ) | $ | (20,523 | ) | $ | (14,639 | ) | $ | (75,857) | ||
| Net loss per share: | |||||||||||||
| Basic and diluted…………………………………………………… | $ | (0.50 | ) | $ | (2.14 | ) | $ | (1.29 | ) | $ | (8.08) | ||
| Shares used in computing net loss per share: | |||||||||||||
| Basic and diluted.................................................................. | 12,653,413 | 9,574,867 | 11,340,973 | 9,383,266 | |||||||||
SPHERE 3D CORP.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands of U.S. dollars)
| September 30, | December 31, | ||||||
| 2023 | | 2022 | |||||
| (Unaudited) | (Unaudited) | ||||||
| ASSETS | |||||||
| Cash and cash equivalents...................................................................... | $ | 613 | $ | 1,337 | |||
| Digital assets, net........................................................................................ | 425 | 1,695 | |||||
| Other current assets..................................................................................... | 4,195 | 7,252 | |||||
| Total current assets......................................................................... | 5,233 | 10,284 | |||||
| Property and equipment, net.................................................................................... | 26,682 | 34,259 | |||||
| Intangible assets, net.................................................................................... | 6,678 | 9,477 | |||||
| Funds held in trust account.................................................................................... | - | 10,297 | |||||
| Other assets............................................................................................. | | 20,503 | 18,699 | ||||
| Total assets.................................................................................... | $ | 59,096 | $ | 83,016 | |||
| LIABILITIES, TEMPORARY EQUITY AND SHAREHOLDERS' EQUITY | |||||||
| Current liabilities.................................................................................. | $ | 6,687 | $ | 6,200 | |||
| Other long-term liabilities..................................................................... | 4,823 | 5,784 | |||||
| Total temporary equity.................................................................................... | 15,597 | 36,467 | |||||
| Total shareholders' equity......................................................................... | 31,989 | 34,565 | |||||
| Total liabilities, temporary equity, and shareholders' equity.......................................................... | $ | 59,096 | $ | 83,016 | |||
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/187224
FAQ
What were Sphere 3D Corp.'s Q3 2023 financial highlights?
How did Sphere 3D Corp.'s financial results compare to Q3 2022?
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How did Sphere 3D Corp.'s Bitcoin production change in the first nine months of 2023 compared to the same period in 2022?
What was the net loss attributable to common shareholders from operations in the first nine months of 2023?
