- The Company produced 12.19 Bitcoin during the month
- Total Bitcoin holdings grew to 49.23 coins
- Operations achieved 128 BTC/EH efficiency
Sphere 3D Corp. ("Sphere 3D" or the "Company") (Nasdaq: ANY),
dedicated to becoming the leading carbon-neutral Bitcoin mining
company operating at an industrial scale, provides results of its
Bitcoin mining operation as of June 30, 2022.
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the full release here:
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CEO Comments
“The current political and economic environment is impacting
every financial market, including cryptocurrency. In June, the
price of Bitcoin fell to a low of about $17,500 according to the
Coinbase Exchange, the lowest level since late 2020. Some analysts
and pundits speculate that the recent price declines indicate that
we are entering a crypto bear market, and some are predicting
cryptocurrency prices could remain depressed for an extended
period.
“Even at the current Bitcoin trading price, it is still
profitable for Sphere 3D to continue mining. Sphere 3D's mining
fleet comprises the most efficient miners currently available, and
our favorable energy agreements will enable us to continue
producing even if Bitcoin prices slide further. If market
conditions persist, companies with less-efficient miners or
less-favorable energy agreements could be compelled to produce
Bitcoin at a loss or shut down their machines and wait for prices
to rebound.
“Lower crypto prices are already exerting considerable negative
pressure on the price of cryptocurrency mining machines. There are
reports that manufacturers have large stockpiles of miners that
have not been financed, which could put even more downward pressure
on the market. Consequently, we are working with our partner
BitFuFu Technology ('BitFuFu') to optimize the agreement we entered
into and announced in September 2021 to make it more equitable for
both organizations.
“The Sphere 3D team is evaluating every option to ensure our
mining operations’ long-term success and drive value for our
shareholders. Recent actions by the Federal Reserve to address
inflationary pressures have delayed our efforts to secure funding
for the balance of our mining fleet at favorable terms. While we
will continue to work with banking partners to arrange favorable
financing, we do not expect to reach an agreement before the end of
the fourth quarter which could result in pushing deliveries of
additional miners into the future, which we understand is
consistent with the steps taken by other crypto mining
companies.”
Bitcoin Production and Holdings
Update
From June 1, 2022, through June 30, 2022, Sphere 3D’s mining
operation produced 12.19 Bitcoin, or an average of 0.41 Bitcoin
daily. The daily production level remained flat compared to May
2022. The equivalent approximate valuation of the Company’s
production, based on a Bitcoin price of $19,889 on June 30, 2022,
totaled approximately $242,500 for the month.
Since the Company began 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 about $1.0
million based on the Bitcoin price of $19,889 on June 30, 2022.
The Company continues to employ a HODL strategy and has not
liquidated Bitcoin since commencing mining operations. The
difference between the number of Bitcoin mined versus its holdings
is the Bitcoin Sphere 3D used to pay operational expenses to
partners.
Miner Deliveries and Petahash
Capacity
As of June 30, 2022, the Company was operating approximately
1,000 S19j Pros miners delivering a production capacity of about
100 PH/s. Sphere 3D’s mining fleet operated at 128 BTC/EH
efficiency in June and averaged 97 percent uptime.
Sphere 3D expects to take delivery of about 4,000 (400 PH/s) new
S19j Pros from BitFuFu, the global strategic arm of Bitmain, during
July 2022. The miners are scheduled to arrive in multiple shipments
and ports in early July. Once received, teams will deploy the
miners as quickly as possible. The Company initially anticipated
the shipments would arrive in early June 2022 however, supply chain
and shipping issues delayed delivery. We are working closely with
our partners to ensure that future orders are shipped and received
on schedule.
While we expect to see an incremental production increase in
July 2022, all miners are not expected to be fully operational
during the month. August 2022 production should increase
significantly due to the addition of approximately 400 PH/s of
production to our mining operation between now and the end of
August, 2022. With the addition of the new miners, we anticipate
our production capacity to grow to about 500 PH/S.
NuMiner Global, Inc. (“NuMiner”) did not meet the June
30, 2022, deadline for delivering and testing the 12 pre-production
miners required in its contract with the Company. NuMiner
representatives stated that supply chain issues prevented them from
manufacturing the machines. As a result, we have canceled our order
and have requested the prompt return of the Company's $10 million
deposit.
Corporate Update
On June 20, 2022, the Company finalized an employment agreement
with Kurt Kalbfleisch to continue his employment as Chief Financial
Officer of Sphere 3D. The one-year agreement was effective as of
June 20, 2022. The contract will be automatically extended for an
additional one-year period unless terminated by either party not
less then 90 days prior to the renewal date.
On May 23, 2022, Patricia Trompeter, Sphere 3D's CEO,
participated in Maxim Group LLC's conference on Digital Assets:
Exploring The Metaverse And Crypto Assets. Ms. Trompeter was
featured on the Cryptocurrency Mining panel, where she shared her
insights on the current cryptocurrency markets, mining in a
turbulent, inflationary 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
website Brave New Coin.
Ms. Trompeter will be featured on the Women Powering Mining
panel at Mining Disrupt, the world's largest Bitcoin mining expo
being held July 26-29, 2022. She will be joining several other
women leaders in the mining industry as part of "an all-woman
unscripted discussion panel on woman powering and leading
innovation in the Bitcoin mining space."
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 ground that focused
on audit, process improvement, and turnarounds in various GE
businesses. We practically lived on the road, spending four months
at each business learning its inner workings, figuring out the
issues holding it back, making recommendations for enhancing its
value, and then assisting the management team in implementing the
recommendations.
“The next quarter, it was off to a different business, different
country/state/city working 12-15 hour days. It was the greatest job
ever, especially working on the companies GE had just acquired,
where our job was to take them apart, clean them up, leverage
synergies and put them back together to position them for
growth.
“It is with that same passion, energy, and drive that I am
approaching Sphere 3D. That is, determining what steps we take to
position the Company to be lean and agile, so we can easily
navigate the macroeconomic forces while positioning the
organization for rapid growth when the factors improve. I am
laser-focused on this challenge and on creating value for my fellow
shareholders. I will share more about our efforts in the coming
months. I am super excited about the challenge and the future of
Sphere 3D. Thank you for joining me on this journey.”
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 rapidly growing its
industrial-scale mining operation through the capital-efficient
procurement of next-generation mining equipment and partnering with
best-in-class data center operators. Sphere 3D has 6.0 EH/s of
capacity under contract for deliveries. Currently, the Company
operates a fleet of approximately 1,000 miners and expects delivery
of an additional 59,000 miners by year-end 2022 for a total hashing
capacity of 6.0 exahash. Sphere 3D is dedicated to growing
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 20-F and Form
6-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.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20220707005840/en/
Sphere 3D NMN Advisors
Sphere3d@nmnadvisors.com
Kurt Kalbfleisch Investor.relations@sphere3d.com
Sphere 3D (NASDAQ:ANY)
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