Sphere 3D Corp. Provides Bitcoin Production and Mining Updates for June 2022 - Seite 2

Bitcoin Production and Holdings Update

From June 1, 2022, through June 30, 2022, Sphere 3D’s mining operation produced 12.19 Bitcoin, or an average of 0.41 Bitcoin daily. The daily production level remained flat compared to May 2022. The equivalent approximate valuation of the Company’s production, based on a Bitcoin price of $19,889 on June 30, 2022, totaled approximately $242,500 for the month.

Since the Company began its mining operations during the first quarter of 2022, it has produced 55.26 coins and held 49.23 Bitcoin on June 30, 2022. This represented a valuation of about $1.0 million based on the Bitcoin price of $19,889 on June 30, 2022.

The Company continues to employ a HODL strategy and has not liquidated Bitcoin since commencing mining operations. The difference between the number of Bitcoin mined versus its holdings is the Bitcoin Sphere 3D used to pay operational expenses to partners.

Miner Deliveries and Petahash Capacity

As of June 30, 2022, the Company was operating approximately 1,000 S19j Pros miners delivering a production capacity of about 100 PH/s. Sphere 3D’s mining fleet operated at 128 BTC/EH efficiency in June and averaged 97 percent uptime.

Sphere 3D expects to take delivery of about 4,000 (400 PH/s) new S19j Pros from BitFuFu, the global strategic arm of Bitmain, during July 2022. The miners are scheduled to arrive in multiple shipments and ports in early July. Once received, teams will deploy the miners as quickly as possible. The Company initially anticipated the shipments would arrive in early June 2022 however, supply chain and shipping issues delayed delivery. We are working closely with our partners to ensure that future orders are shipped and received on schedule.

While we expect to see an incremental production increase in July 2022, all miners are not expected to be fully operational during the month. August 2022 production should increase significantly due to the addition of approximately 400 PH/s of production to our mining operation between now and the end of August, 2022. With the addition of the new miners, we anticipate our production capacity to grow to about 500 PH/S.

NuMiner Global, Inc. (“NuMiner”) did not meet the June 30, 2022, deadline for delivering and testing the 12 pre-production miners required in its contract with the Company. NuMiner representatives stated that supply chain issues prevented them from manufacturing the machines. As a result, we have canceled our order and have requested the prompt return of the Company's $10 million deposit.