STAMFORD, Connecticut - Sphere 3D Corp. (NASDAQ: ANY), a company specializing in Bitcoin mining, has reported a significant increase in its fiscal year revenue for the period ending December 31, 2023. The revenue rose to $21.9 million, a substantial uplift from the $6.1 million recorded in the previous year. This growth is primarily attributed to the company's enhanced digital mining operations.
Throughout 2023, Sphere 3D achieved a mining output of 667 Bitcoin, marking a 409% increase from the prior year. The company's operating hashrate also expanded to 1.3 EH/s, up from less than 0.1 EH/s. These operational advancements contributed to the revenue spike, alongside the divestiture of non-core businesses and the payoff of all company debt.
Despite the revenue growth, Sphere 3D experienced a net loss of $23.4 million, or $1.93 per share, which is an improvement over the $192.8 million net loss, or $20.36 per share, from the previous year. The reduction in net loss is largely due to decreased operating costs and expenses, which fell from $163.7 million in 2022 to $51.9 million in 2023. The company cited decreases in impairments of mining equipment, intangible assets, and provisions for losses, among other factors.
In the fourth quarter of 2023, Sphere 3D terminated a Master Services Agreement with Gryphon Digital Mining, Inc., which positively impacted the company's gross margin. Additionally, the company sold its service and product segment, including HVE Inc. and Unified ConneXions, which resulted in a noncash gain.
Sphere 3D also reported a gain from the deconsolidation of Minority Equality Opportunities Acquisition Inc. (MEOA) after its shares were canceled, eliminating Sphere 3D's ownership in MEOA. Moreover, the company settled with Core Scientific, Inc., receiving equity as part of Core Scientific's bankruptcy emergence plan.
The company's leadership expressed optimism about achieving positive cash flows on an adjusted EBITDA basis, particularly in light of the recent rise in Bitcoin value. Sphere 3D is also preparing for the anticipated Bitcoin halving in the second quarter of 2024.
The information in this article is based on a press release statement from Sphere 3D Corp.
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