9/24/21
Sphere 3D Corp. (NASDAQ: ANY)
Undervalued. A gift. Massive profit potential.
These are the opinions of many in the Cryptocurrency sector who believe the present price ($5.88) of Sphere 3D Corporation (ANY) shares doesn’t reflect the true value of a future diamond.
The opinion of undervalued revolves around the merger of ANY with a non-publicly traded company, Gryphon Digital Mining. The merger will take place sometime in Q4 of this year, according to a recent press release.
Gryphon brings an inroad to hosting Bitcoin miners to ANY. ANY, who wants to transform their business model from data storage to mining Bitcoin, brings Gryphon a quick path to NASDAQ with a simplified entry to the stock market.
As part of the proposed deal, ANY will issue 111 million new shares. Warrants will also be issued and are marked at $9.50/share. Gryphon insiders will control 27% of the company. ANY shareholders will control 73%, but all shares will trade on a single ticker symbol and be valued the same.
The proposed merger is also subject to “adjustments,” should market conditions change, or other factors come into play.
Gryphon seems to be wasting little time in preparation of being a publicly traded company.
ANY, which will mine bitcoin using renewable energy provided by a Gryphon deal with Core Scientific, just secured the largest single order of Bitcoin miners. 60,000 mining rigs will eventually be added to the company’s arsenal during 2022. Currently there are 7200 mining rigs running, which will bring their total to 67,200 mining rigs when this latest order is filled.
6000 mining rigs are due to be delivered in November, with batches of 6000 delivered each month until the order is complete.
Estimates given indicate 67,200 miners would generate 1300 Bitcoins per month, at current difficulty rates.
Gryphon said it plans on having more than 220,000 Bitcoin miners by 2025, which would make the merged companies the largest bitcoin miner in the world, surpassing all other Bitcoin companies currently mining.
More than one analyst has predicted ANY at more than $20/share when the merger takes place, and possibly $70/share late next year.
That, of course, depends largely on the price of Bitcoin, which can be volatile, the amount of mining machines installed and running as planned, the efficiency at which they mine Bitcoin, and possible delays in the merger being finalized.
At the time of this post Bitcoin was at $43,000 per coin.
NOV. UPDATE: The merger has been delayed until Q1 2022.
JAN. UPDATE: Management approves merger. Shareholders to receive proxy for merger vote.
Notice: Any and all discussion of a stock should not be considered financial advice and is for entertainment purposes only. I have a position in the stock discussed, unless otherwise declared. I often lose my car keys and forget where I parked my car. I am not a financial advisor.