Sphere 3D Corporation has announced that it has reached an agreement to purchase 60,000 Numiner NM440 cryptocurrency miners. This is a big step for Sphere 3D, which had previously only mined with its own mining rigs. Based on the current mining capacity of the Numiner NM440, Sphere 3D will have a total computing power of 32 exahash per second. This shows that Sphere 3D is committed to becoming one of the top ten Bitcoin mining pools in the world.
- Upon full deployment, Sphere 3D will be one of the largest carbon neutral bitcoin miners in the world.
- A contract has been signed between Sphere 3D and NuMiner for the purchase of 60,000 of its next-generation bitcoin miners operating at 440 TH/s for a total capacity of 26.4 EH/s. Sphere 3D had previously contracted to purchase 60,000 ANTMINER S19j Pro bitcoin miners totaling 6.0 EH/s for delivery by the year 2022.
- NuMiner machines will be purchased for a total of $1.9 billion, which includes $1.1 billion in vendor purchase financing, $400 million of Sphere 3D capital stock, $29 million in cash, and up to $185 million of additional milestone payments, as discussed below.
The Sphere 3D Corporation (Nasdaq: ANY) (“Sphere 3D” or the “Company”), has entered into agreement with NuMiner Global Corporation (“NuMi”) to purchase 60,000 NM440 bitcoin mining systems.
The NM440 was introduced to the market for the first time today and features a hash rate of 440 TH/s and a power efficiency ratio of 20.2 J/T.
NM440s will be received by the Company on or before June 1, 2022, based on current schedules for delivery..In June 2022, 1,000 NM440’s will be deployed and almost 10,000 by February 2023, following the successful completion of the final evaluation and testing.
As part of the agreement, the Company has also been granted the exclusive right of first refusal over all future NuMiner products and software enhancements as well as an option to acquire an additional 26.4% of production at the same commercial terms.
The purchase terms for the 60,000 NM440s amount to a maximum purchase price of $1.7 billion including:
- Sphere 3D will make a down payment of $429 million, including $400 million in common and preferred stock, subject to regulatory approval, and $29 million in cash; NuMiner is expected to provide Sphere 3D with vendor financing of $1.1 billion at the option of Sphere 3D, subject to more definitive agreements.
- NM440 milestone payments in the amount of approximately $185 million based on a sliding scale based on reducing the number of units delivered below the current 20.2 units per month.
Sphere 3D’s Board of Directors will be reconstituted, with Anthony Melman, Chair of NuMiner Global’s Board of Directors, being appointed to the Board by March 2022.
The agreement to purchase the NM440 will allow Sphere 3D to increase our EH/s capacity on order by 440% over the next 13 months. We continue to focus on the growth of our mining operations.The NM440 should also enhance our overall efficiency, which will improve margins and profitability as we expand our mining operations,” said Peter Tassiopoulos, CEO of Sphere 3D. “The reduction in energy consumption per TH/s further exemplifies our shared collaboration,” he said.
Tony Melman, who has extensive experience in technology, M&A, and governance, will be a welcome addition to the Board of Sphere 3D.
Sphere 3D will become one of the largest carbon neutral bitcoin miners with this purchase. If fully deployed today, the Company’s contracted deliveries would represent approximately 14% of the global network hashrate.
In addition, 120,000 miners will comprise 60,000 NM440s, which represent 26.4 EH/s, and 60,000 ANTMINER S19j Pros. Sphere 3D’s proposed merger partner, Gryphon Digital Mining, Inc., has currently deployed 3,000 machines, and Gryphon will deploy 500 more by the end of the month on behalf of Sphere 3D.
In a statement, NuMiner Global CEO, Iain Kennedy, stated, “Our agreement with Sphere 3D provides a deployment path for our next generation bitcoin miners. We are accelerating a move toward renewable and sustainable energy by reducing the cost and energy consumption of bitcoin mining.ws Sphere 3D to rapidly expand its hashrate and become one of the world’s largest bitcoin miners.@
Rob Chang, CEO of Gryphon Digital Mining, said: “We are looking forward to joining the Sphere team and working with NuMiner on the NM440’s cutting-edge technology.” In addition to this collaboration, Gryphon Digital Mining supports NuMiner’s commitment to focusing on customers that are the most efficient miners available on the market.”
About Anthony Melman
Dr. Anthony Melman is a financial industry veteran and is currently the Board Chair and CEO of Nevele Inc., a private consulting firm that specializes in mergers and acquisitions and financing.Dr. Melman most recently served as Managing Director and Partner at Onex Corporation for more than 22 years, prior to joining Nevele. Besides serving on the board of CP Rail and as Chair of its Finance Committee, he has served on the boards of the Ontario Lottery and Gaming Corporation and the University of Toronto.
Currently, if all miners were deployed, they would represent about 14% of the total network hash rate. The total network hash rate data is calculated by a third-party, and you can access it here: //www.blockchain.com/charts/hash-rate. Data from these sources has not been independently verified.
Via this site.