Sphere 3D Shares Jump 30% After Bitcoin Miner Deal

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By Chris Wack

Sphere 3D Corp. shares were up 30% to $3.01 after the company said it is buying 60,000 units of new NM440 bitcoin miners from NuMiner Global Inc.

At 1:40 pm EST, Bitcoin was trading at $40,354.12, up almost 10% in the last 24 hours.

The company said the NM440 was introduced to the market for the first time Friday, and based on current delivery schedules, it will receive 12 pre-production NM440s for final evaluation and testing to completed on or before June 1.

Upon the successful completion of the final evaluation and testing, deployment will consist of 1,000 miners in June and 10,000 NM440s a month from September 2022 to February 2023. Sphere 3D was also granted an option to acquire an additional 26.4 EH/s of production at the same commercial terms as well as the exclusive right of first refusal on all future NuMiner products and software enhancements.

The purchase terms for the 60,000 NM440s amount to a maximum purchase price of $1.7 billion, including $429 million in down payments, including $400 million in common and preferred stock, and $29 million in cash.

As part of the transaction, Anthony Melman, chairman of the NuMiner Global board of directors, will be appointed to the Sphere 3D board, which is seen to be effective in March.

Write to Chris Wack at [email protected]

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