Sphere 3D Corp. reported a revenue of $16.6 million for the fiscal year ending December 31, 2024, a decrease of 24% from $21.9 million in 2023. This decline was attributed to a $3.1 million drop in Bitcoin mining revenue, primarily due to the relocation of approximately 3,300 mining machines by a hosting provider, which took them offline. Additionally, the company sold its Service and Product segment in December 2023, resulting in a further $2.2 million decrease in revenue. The company recorded a net loss of $9.5 million for the year, reflecting ongoing challenges in the volatile cryptocurrency market.
In terms of operational changes, Sphere 3D has shifted its focus entirely to Bitcoin mining, having sold its Service and Product segment, which included HVE ConneXions and Unified ConneXions, for $1.00 and the transfer of liabilities. As of December 31, 2024, the company owned approximately 14,000 miners, with 6,300 in service, and a total hashrate capacity of 0.76 exahash per second (EH/s). The company is in the process of refreshing its mining fleet with newer-generation machines and has plans to vertically integrate by developing an 8 MW mining site in Iowa, which was energized in March 2025.
The company’s operational metrics indicate a significant decrease in Bitcoin production, with 286.3 Bitcoin mined in 2024, down 57.1% from 667.4 Bitcoin in 2023. This reduction was largely due to the halving event in April 2024, which cut the block reward from 6.25 to 3.125 Bitcoin, and the strategic decision to transition to lower-cost hosting sites. Sphere 3D anticipates increasing its total hashrate to approximately 1.5 EH/s in 2025 as it continues to deploy new miners.
Looking ahead, Sphere 3D faces substantial liquidity challenges, with management expressing doubt about the company's ability to continue as a going concern within the next 12 months without raising additional capital. The company has initiated an at-the-market offering program to raise up to $8 million and is focusing on reducing mining costs and enhancing operational efficiency. The ongoing volatility in Bitcoin prices and the competitive landscape of the cryptocurrency mining industry remain critical factors that could impact the company's future performance and financial stability.
About Sphere 3D Corp.
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