Sphere 3D Corp. Provides October 2024 Update

Core Insights - Sphere 3D Corp. provided a strategic and operational update for October 2024, highlighting an increase in Bitcoin production and ongoing developments in mining operations [1] Production Metrics - 11.7 Bitcoin were mined in October 2024, showing a slight increase from previous months [2] - The month-end deployed hash rate was 0.8 EH/s, down from 1.3 EH/s in October 2023 [2] - Bitcoin mined in October 2023 was 69.2, which decreased to 9.2 in September 2024 before rising to 11.7 in October 2024 [2] Financial Performance - Mining revenue for October 2024 was $0.8 million, compared to$2.0 million in October 2023 and $0.6 million in September 2024 [2] - Bitcoin sold in October 2024 was 12.0, up from 10.0 in September 2024 [2] Operational Developments - The company initiated development on a new 12.5 MW hosting site in Iowa, with a long-term power contract under$0.04 per kWh starting January 1, 2025 [2][5] - The CEO noted that 875 of the planned 1,000 new generation Bitmain S21 machines were brought online, with an additional 1,000+ expected in Q1 2025 [3][6] Strategic Focus - The company aims to maximize production levels while managing operating costs, transitioning to lower-cost facilities to enhance profitability [4] - Discussions with potential merger partners are advancing as operations improve [8] Future Outlook - Production is expected to rebound in late December/early January as machines are redeployed to lower-cost facilities [9] - The recent increase in Bitcoin prices and political developments are anticipated to provide a more stable environment for Bitcoin [9]