Facing a severe cash crunch, Bitcoin miner Sphere 3D quietly prepares to dilute its shareholders by a staggering 50%
Sphere 3D filed an amended at-the-market equity program allowing up to $10.3 million in stock sales for working capital, replacing its prior ATM. At the July 31 assumed price of $2.35 per share, full use would issue 4,382,978 shares and raise basic shares outstanding from 8,619,150 to 13,002,128, a 50.9% increase. The facility is only authorization; the agents do not have to sell any minimum amount, and actual issuance will depend on market prices. Estimated net proceeds are about $9.9 million after fees. The company also says it may sell mined Bitcoin for working capital or growth, and it already used the prior ATM by selling 2,172,789 shares for $5.13 million in gross proceeds. Liquidity remains tight: prior filings showed low cash and digital assets, and audit reports included going-concern warnings. As of the latest SEC feed check, no sales under the amended program had been disclosed.
