Sphere 3D Corp. reported its financial results for the third quarter and the nine months ended September 30, 2024, highlighting significant changes in revenue, profitability, and strategic developments compared to the previous fiscal period.

For Q3 2024, Sphere 3D generated total revenues of $2.4 million, a decrease from $5.7 million in Q3 2023. The decline was primarily attributed to 22% of mining machines being offline for relocation and the removal of older equipment. Bitcoin mining revenue specifically fell to $2.4 million from $5.1 million in the same quarter last year. However, for the nine months ended September 30, 2024, total revenues were $14.0 million, slightly down from $14.2 million in 2023, with an increase in Bitcoin mining revenue offsetting the loss from the sold Service and Product segment.

Operating costs and expenses for Q3 2024 were $7.5 million, down from $12.1 million in Q3 2023, reflecting a strategic focus on reducing costs. The company reported a loss from operations of $5.2 million for Q3 2024, an improvement from a loss of $6.4 million in Q3 2023. Net income for Q3 2024 was $104,000, a significant turnaround from a net loss of $6.3 million in the prior year. For the nine-month period, the net loss narrowed to $2.2 million from $14.6 million in 2023.

The company’s cash position improved markedly, with cash and cash equivalents rising to $5.0 million as of September 30, 2024, compared to $0.6 million at the end of 2023. Total current assets also increased to $14.5 million from $13.5 million. The reduction in total current liabilities to $3.5 million from $5.3 million further strengthened the balance sheet.

Strategically, Sphere 3D sold its Service and Product segment on December 28, 2023, which has allowed it to focus solely on Bitcoin mining operations. The company has also been transitioning to lower-cost hosting sites and refreshing its mining fleet with newer-generation machines. As of September 30, 2024, the company owned approximately 15,000 miners, with about 6,400 in service.

In terms of operational efficiency, the average energy efficiency of miners improved to 28.4 J/th. The company is also exploring new opportunities, including a letter of intent to acquire a 12.5 MW site in Iowa with favorable energy costs.

Overall, Sphere 3D's financial results reflect a strategic pivot towards enhancing its Bitcoin mining operations while managing costs and improving cash flow, despite challenges in the broader cryptocurrency market.