Sphere 3D Prepares to Dilute Shareholders by Up to 50.9%

Sphere 3D, a Bitcoin miner, has quietly prepared to dilute its shareholders by up to 50.9% through an amended at-the-market stock-sale facility.

The company can issue up to $10.3 million in new shares, which would add approximately 4,382,978 common shares to the basic share count.

This move comes as Sphere 3D faces a severe cash crunch, with its latest available combined baseline showing only $3.38 million of cash and $2.06 million of digital currencies on hand as of March 31.

The company generated $2.79 million in Bitcoin-sale proceeds during the quarter but still reported a working-capital deficiency of C$4.35 million at Cathedra, its subsidiary.