- Sphere 3D announces huge agreement to acquire Bitcoin mining machines…
- Agreement builds on upcoming merger with Global Digital Mining…
- Sykes pinpoints ANY stock as a “morning panic” dip buy…
Sphere 3D Corp (NASDAQ: ANY) popped at the open today following news of a big Bitcoin-related agreement.
ANY stock surged 55% at the start of trading today and closed 41% at $4.86 per share.
Today’s rally comes after Sphere 3D announced it has “entered into an agreement with Hertford Advisors Ltd… to provide a six-month exclusive right to assume all of Hertford’s rights to a number of bitcoin mining agreements.”
Self-made trading millionaire, philanthropist, and educator Timothy Sykes included this stock on his daily watchlist today as a “higher priced spiker worth watching.”
Sykes said it was a “potential dip buy into any big morning panics”.
That was a nod to what he calls “one of the best patterns for newbies and traders with small accounts.”
And 45 minutes after spiking at the open, ANY stock was trading just 27% higher before rallying again to a 50% gain in the early afternoon.
Table of Contents
Details of the Agreement
ANY said it “has successfully assumed and executed the first Bitcoin Agreement directly with the manufacturer, for the purchase of up to 60,000 new bitcoin mining machines (“miners”), with deliveries to commence in November 2021 and continue over the course of the next ten months.”
The agreement will give Sphere 3D 5.7 Exahash of computing power upon completion of that delivery.
Sphere 3D’s CEO Peter Tassiopoulos said, “We are pleased to have the opportunity to place Sphere 3D as a leader in the space with state of the art miners, in a very competitive market where time to delivery is paramount. We continue to look for ways to increase shareholder value while remaining true to our commitment to ESG principles. We believe that this series of transactions could have significant revenue and cost synergies across our value chain.”
As part of the transaction, Hertford will receive common shares of ANY stock “as well as shares of a new series of preferred stock in the Company, based upon the achievement of certain milestones.”
“Upon assignment of the contracts, the Company will issue an aggregate of 4,500,000 Common Shares to Hertford Advisors, Ltd. Additional consideration will be granted as other key milestones are achieved.”
The required milestones of the agreement are:
- The assumption of two additional contracts for the purchase of up to an additional 160,000 miners (totaling 220,000 miners)
- The right to complete negotiations to secure a long-term contract for a 200,000 square foot crypto mining facility to be supplied with up to 1GW of carbon-neutral power and 1GW of power from the grid as backup
ANY said the initial release of shares will start “six months after issuance of the securities, and continue until two years following the issuance of the securities.”
Sphere 3D said it will have 21.5 Exahash of computing power after all contracts in the agreement are executed.
Focus on Renewable Crypto Mining
This agreement builds on Sphere 3D’s merger with Gryphon Digital Mining Inc which was announced in June.
That merger is expected to close in the fourth quarter of this year and the combined company will be known as Gryphon Digital Mining Inc.
Gryphon Digital is “a privately-held company focused on the mining of bitcoin using renewable energy.”
Gryphon said the combined company “will focus on expanding Gryphon’s digital mining operations and utilize Sphere 3D’s proprietary enterprise solutions to optimize Gryphon’s processes.”
Renewable mining has been a hot topic since Tesla CEO Elon Musk started sounding the alarm about the energy consumption of Bitcoin mining back in May.
Sphere 3D’s CEO said, “Gryphon’s future focus on mining using 100% renewable energy will set the bar for mining companies of the future. We have been engineering GPU-based converged systems for many years and are excited to leverage our experience to enhance the performance of Gryphon’s operations.”
Gryphon CEO Rob Chang said, “Sphere 3D’s IT engineering team is a natural fit with our exceptional bitcoin mining expertise as we look to build upon our platform. Additionally, we look forward to leveraging Sphere’s deep datacenter expertise as we expand our operations into building large-scale, renewable, cryptocurrency mining solutions in the future.”
Quick Six About ANY Stock
- Sphere 3D was founded in 2009 and is headquartered in Toronto, Canada.
- It describes itself as “a company delivering containerization, virtualization, and data management solutions”.
- ANY stock closed at $3.44 per share on Thursday.
- The stock opened today’s session at $5.35 per share and quickly hit a daily high of $5.61 per share.
- Trading volume jumped above 106 million shares, which is 1,468% average.
- Sphere 3D has a market cap of $67.94 million.