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In the past, Canada-based Sphere 3D (NASDAQ:ANY) was primarily known as a software business. As such, the company didn’t generate much buzz on Wall Street and the daily trading volume of ANY stock was fairly low.
Source: Mark Agnor / Shutterstock.com
Sphere 3D’s somewhat-outdated investor relations page insists that the company “delivers containerization, virtualization, and data management solutions via hybrid cloud, cloud and on-premise implementations.”
That’s still true, but financial traders are looking at the company very differently in 2021’s second half. That’s because Sphere 3D is now aggressively entering the Bitcoin (CCC:BTC-USD) mining market.
The company has also announced a merger with a major Bitcoin mining operation — and furthermore, it’s one with zero carbon footprint. Even beyond that, Sphere 3D’s recent mining rig order is a real head-turner. It’s a sign that the company is ready not just to compete, but also to win.
ANY Stock at a Glance
Now that Sphere 3D is heavily involved in cryptocurrency mining, traders will need to adjust their strategies accordingly. Specifically, ANY stock is likely to be correlated to Bitcoin’s price. That shouldn’t be a problem if you’re bullish on crypto in general.
Like Bitcoin, the Sphere 3D share price is subject to some volatility. Therefore, it might not be appropriate for large position sizes.
We’ve already seen some wild price moves this year. ANY stock traded for $1.44 at the beginning of 2021, yet by early August, it was already up to $5.40. Then, amazingly, the stock leaped to a 52-week high of $11.98 in early September. However, that move turned out to be too much, too fast.
Folks who chased ANY stock near $12 were promptly punished. The share price dropped below $6 in late September and settled at $6.20 on Oct. 5.
The next target for buyers should be $9.50 and, naturally, the prior short-term peak of $12, which could offer some resistance.
An ESG-Focused Miner
Some folks might criticize cryptocurrency miners because they have a reputation for using up so much energy. That’s a fair criticism in some instances. However, it’s doesn’t necessarily apply to each and every crypto mining company.
Sphere 3D is setting out to break the mold while building a reputation for Environmental, Social and Governance (ESG) compliance.
The company’s stated objective is to become one of the carbon-neutral leaders in the Bitcoin mining industry “through deployment of state-of-the-art crypto mining equipment powered by renewable energy.”
In that vein, Sphere 3D entered into a merger agreement with Gryphon Digital Mining. With that, the two combined companies seek to “bring the first 100% renewable energy Bitcoin mining company to the public markets.”
It’s commendable that some cryptocurrency miners are gradually offsetting their carbon footprints. Gryphon, on the other hand, chose to have zero carbon footprint from the start.
Sphere 3D’s Major Hash Power
Gryphon’s mining is hydro-electric-powered, and the company plans to expand to other renewable energy sources. These include nuclear, wind and solar power.
Just because the combined business plans to be ESG compliant, that doesn’t mean that there will be a loss of hash power.
In fact, the combined companies expect to have a total capacity of 6.7 exahash. This means that together, they’ll be capable of producing in excess of 1,300 Bitcoin per month based on current difficulty rates.
And speaking of major hash power, Sphere 3D just secured an order for an incredible 60,000 Bitcoin mining rigs.
These will be Antminer S19j Pros, which are viewed as an industry-leading mining rig. The delivery of these mining rigs will commence in November 2021.
Meanwhile, 7,200 miners are being delivered to Gryphon. Hence, the combined company has 67,200 state-of-the-art cryptocurrency mining machines in queue for delivery, according to Sphere 3D CEO Peter Tassiopoulos.
The Takeaway on ANY Stock
With big-time hash power and an ESG angle, Sphere 3D isn’t the same company it was just a year ago. But that’s not a bad thing at all, especially if you’re bullish on Bitcoin and the machines that mine it.
So, you might consider a position in ANY stock today. Just be sure to keep your eye on the Bitcoin price and any new developments from this ambitious crypto-mining start-up.
On the date of publication, neither Louis Navellier nor the InvestorPlace Research Staff member primarily responsible for this article held (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
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