Shareholder equity diluted by approximately 50.9% as Bitcoin miner Sphere 3D plans to sell up to $10.3 million in stock

Odaily News: Bitcoin miner Sphere 3D, facing severe cash flow shortages, has amended its at-the-market equity offering program, authorizing the sale of up to $10.3 million in stock for working capital. Based on an assumed price of $2.35 per share, a full issuance would add approximately 4.38 million shares, increasing total shares outstanding from about 8.62 million to roughly 13 million, representing a dilution of approximately 50.9%. The company may also sell Bitcoin mined from its operations as needed. As of March 31, the company held $3.15 million in cash and 26.2 BTC, with a fair value of approximately $1.79 million, and generated $2.79 million from Bitcoin sales in the first quarter. Both Sphere 3D and Cathedra have flagged going concern risks in their audit reports, with Cathedra reporting net operating cash outflows of C$1.17 million in the first quarter.