Sphere 3D Prices $5M Financing, Sells Mining Assets to Fund AI Push
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Key Takeaways
- Sphere 3D sold its Iowa site to Simple mining, LLC for $1.5 million and its 5,500-machine legacy fleet to RepairBit, LLC for $3.1 million.
- The Iowa site sale includes a $300,000 cash payment and a $1.2 million interest-free promissory note payable through November 2027.
- The company is set to recover $525,000 in utility prepayments and security deposits from the Iowa site.
- Ownership of the mining machines remains with Sphere 3D until payments are received during the 90-day delivery window.
Sphere 3D has priced a $5 million private placement and agreed to sell non-core mining assets for another $5 million as it redirects capital toward AI and high-performance computing infrastructure in Tennessee and Kentucky.
The company said on Monday that selling its Iowa site, recovering deposits, and disposing of about 5,500 mining machines would generate roughly another $5 million. The financing is expected to close Sept. 11.
In terms of the private placement, investors will pay $3 per unit for a share and a five-year warrant exercisable at $3.50. Three company directors subscribed for about $1 million. The securities carry a six-month lockup.
Sphere 3D shares closed at $2.45 on Monday, up 5.6%, before the announcement was released after regular trading ended. Market data subsequently showed an after-hours price of $2.79, a further 13.9% gain.
