Sphere 3D Seeks Lifeline with Up to 50% Share Sale

Sphere 3D, a Bitcoin miner, is facing a severe cash crunch and has prepared to dilute its shareholders by up to 50.9% through an amended at-the-market (ATM) stock-sale facility.

The company can sell up to $10.3 million worth of shares under the facility, which would add 4,382,978 common shares to its basic share count.

This represents about 33.7% of the resulting basic total, leaving shares already outstanding at around 66.3%. However, this figure excludes stock options and other equity awards that could further dilute shareholder value.

Sphere 3D estimates approximately $9.9 million of net proceeds from the sale, after a 3% sales-agent commission and estimated offering expenses.