Sphere 3D Corp. announces its agreement with Hertford Advisors Ltd. to provide a six-month exclusive right to assume all of Hertford’s rights to a number of bitcoin mining agreements.
“This is a significant milestone for Sphere 3D as we look to the future,” says Peter Tassiopoulos, Sphere 3D’s CEO.
The Company has successfully assumed and executed the first Bitcoin Agreement directly with the manufacturer. The agreement is for the purchase of up to 60,000 new bitcoin mining machines. The deliveries of these machines will commence in November 2021. The deliveries will continue over the course of the next ten months. Upon completion of delivery, this will give Sphere 3D 5.7 Exahash of computing power.
Sphere 3D will issue Hertford Common Shares in exchange for the assignment of contract from Hertford. Sphere 3D will also issue shares of a new series of preferred stock in the Company, based upon the achievement of certain milestones. If all contracts are executed, Sphere 3D will have 21.5 Exahash computing power. Upon assignment of the contracts, the Company will issue an aggregate of 4,500,000 Common Shares to Hertford Advisors, Ltd. The shares issued by the Company shall be subject to lock up and leak out agreements, with the initial release starting six months after issuance of the securities, and continuing until two years following the issuance of the securities.
As previously disclosed, the Company entered into a definitive merger agreement with Gryphon on June 3, 2021. Gryphon is committed to 100% renewable Bitcoin mining and currently holds 720 PH/s computing power. This agreement secures access to additional mining capacity and creates new revenue opportunities within Sphere 3D’s existing business.