ANY Stock Price Increases Over 20% Pre-Market: Why It Happened

By Amit Chowdhry ● Aug 9, 2021
  • The stock price of Sphere 3D Corp (NASDAQ: ANY) increased by over 20% pre-market. This is why it happened.

The stock price of Sphere 3D Corp (NASDAQ: ANY) – a company delivering containerization, virtualization, and data management solutions – increased by over 20% pre-market. This is a continuation of momentum as the company stock price increased 41.28% in the previous trading session.

Investors are responding positively to Sphere 3D announcing it has entered into an agreement with Hertford Advisors Ltd., a privately-held company that provides turnkey mining solutions to provide a six-month exclusive right to assume all of Hertford’s rights to a number of bitcoin mining agreements.

Sphere 3D 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 with deliveries to commence in November 2021 and continue over the course of the next ten months. And upon completion of delivery, this will give Sphere 3D 5.7 Exahash of computing power.

In exchange for the assignment of the contracts from Hertford, for which Sphere 3D has the right, but not the obligation, to complete, and subject to receipt of all necessary regulatory approvals and execution of definitive agreements, Sphere 3D will issue to Hertford Common Shares, as well as shares of a new series of preferred stock in the Sphere 3D, based upon the achievement of certain milestones. And these milestones include the assumption of two additional contracts, outside of the 60,000 miner agreement previously mentioned, for the purchase of up to an additional 160,000 miners (for a total of 220,000), and 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, for which the lessor will contractually agree to offset all carbon emissions when grid power is utilized. 

If all of the contracts are executed, Sphere 3D will have 21.5 Exahash computing power. And upon assignment of the contracts, Sphere 3D will issue an aggregate of 4,500,000 Common Shares to Hertford Advisors, Ltd. And additional consideration will be granted as other key milestones are achieved. The shares issued by Sphere 3D shall be subject to lock up and leak out agreements with the initial release starting six months after issuance of the securities, and continuing until two years following the issuance of the securities.

As previously disclosed, Sphere 3D had also entered into a definitive merger agreement with Gryphon on June 3, 2021, which is expected to close in the 4th Quarter 2021. Gryphon is committed to 100% renewable Bitcoin mining and currently holds 720 PH/s computing power. And this agreement secures access to additional mining capacity and creates new revenue opportunities within Sphere 3D’s existing business.

Disclaimer: This content is intended for informational purposes. Before making any investment, you should do your own analysis.