Sphere 3D Acquires Exclusive Rights to Hertford Advisors’ Crypto Mining Assets
Sphere 3D has already bought 60,000 mining machines and plans to buy 160,000 more.
Aug 6, 2021 at 3:44 p.m. UTCUpdated Sep 14, 2021 at 1:36 p.m. UTC
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Sphere 3D, a Nasdaq-listed data-management company that’s being bought by Gryphon Digital Mining, has acquired exclusive rights to the bitcoin mining assets of Hertford Advisors.
- Hertford is a privately held company that provides a wide range of financial management services.
- The deal gives Sphere 3D a six-month exclusive right to some of Hertford’s bitcoin mining agreements.
- Toronto-based Sphere 3D Corp. said it has completed its first agreement and bought 60,000 new bitcoin mining machines. Delivery will start in November and take 10 months.
- Other milestones in the contract include the purchase of an additional 160,000 mining machines and securing a long-term contract for a 200,000-square-foot crypto mining facility.
- While the company didn’t give a value for the transaction, it said it will issue 4.5 million shares to Hertford once those two targets are achieved. Based on Sphere 3D's closing price on Thursday, that would be $15.5 million. It will also issue shares in a new series of preferred stock, and further “consideration” will be issued as the relationship progresses.
- In June, Sphere 3D agreed to be acquired by Gryphon Digital Mining in a reverse takeover. That deal is due to be completed in the fourth quarter, the company said.
- Sphere 3D shares rose as much as 78% to $6.13 Friday, and at press time were trading up 30% at $4.50.
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