Sphere 3D Equity Dilution Hits 50.9% on $10.3M Stock Sale Plan

Bitcoin miner Sphere 3D authorizes $10.3M stock sale, diluting equity by 50.9%. With $3.15M cash and going concern risks flagged, liquidity pressure intensifies.

Woofun AI reports that Bitcoin miner Sphere 3D has amended its at-the-market equity offering to authorize the sale of up to $10.3 million in stock for working capital. Based on a $2.35 per share assumption, full issuance adds 4.38 million shares, raising total outstanding shares from 8.62 million to roughly 13 million, resulting in approximately 50.9% dilution.

The company may also sell mined Bitcoin as needed. As of March 31, Sphere 3D held $3.15 million in cash and 26.2 BTC valued at $1.79 million, having generated $2.79 million from Bitcoin sales in Q1. Both Sphere 3D and Cathedra have flagged going concern risks in audit reports, with Cathedra reporting C$1.17 million in net operating cash outflows for the quarter.