Sphere 3D Corp. Reports Strong Bitcoin Mining Performance for December 2023

Bitcoin Mining Success in December 2023

Sphere 3D Corp. has reported substantial progress in its Bitcoin mining operations for December 2023, achieving a significant increase in production. The company mined 73.5 Bitcoin, marking a 311% year-over-year growth and a 3% rise from the previous month. Despite challenges with a 77% uptime at a hosting partner's site in Missouri, the firm maintained its operating hash rate at 1.3 EH/s, a fourfold increase from the prior year.

Key Metrics and Financial Performance

At the end of December, Sphere 3D's Bitcoin holdings stood at 41.2, with sales of 50.4 Bitcoin. The mining revenue reached $3.1 million, reflecting an upward trend. The deployed miners remained constant at approximately 12,800 units, contributing to the stable hash rate.

Strategic Developments and Settlements

Sphere 3D has entered a settlement with Core Scientific, resulting in a $10 million non-dilutive capital gain. This agreement, pending bankruptcy court approval, includes mutual release of claims and offers Sphere 3D potential equity in the reorganized Core Scientific. This capital is earmarked for strategic growth and enhancing mining capacity.

Gryphon Digital Mining Termination

The termination of the Master Services Agreement with Gryphon Digital Mining is expected to boost Sphere 3D's gross profit by 22.5%. The company is actively pursuing the recovery of approximately 21.6 Bitcoin held by Gryphon, exploring legal avenues to ensure the return of these funds.

Preparing for the Future

Sphere 3D is strategically positioning itself for future growth, anticipating the impact of the Bitcoin havning. The company is exploring various avenues, including organic expansion, mergers, and acquisitions, to boost its exahash capacity. By focusing on strategic opportunities and operational efficiency, Sphere 3D aims to capitalize on its strong position in the cryptocurrency mining industry as it moves into 2024.