Sphere 3D restructures bitcoin miner deal with BitFuFu

Sphere 3D (NASDAQ:ANY) said Thursday it restructured its purchase agreement for 6.0 EH/s of capacity, or ~60K S19j Pros, with Fufu Technologies (BitFuFu).The restructured deal will apply all prepaid deposits - $106.9M paid to date - to BitFuFu toward immediate delivery of ~1.7 EH/s of S19j Pros to the Sphere 3D (ANY) during 2022.It also relieves the cryptocurrency miner from obligations of the old contract requiring it to buy an additional 3.9 EH/s of capacity, ~39K miners, at rates higher than current market prices.The restructuring eliminates substantial penalties due to BitFuFu from Sphere 3D (ANY).The original deal was for 6.0 EH/s of Bitmain Antminer S19J & Pro Series. While miners began shipping in Dec., they were repeatedly delayed due to operational issues at BitFuFu.The miners due to Sphere 3D (ANY) under the restructured deal will arrive at the end of Nov., with anticipated installation in Dec."The contract was signed in late 2021 as a fixed price contract with no allowances for market price adjustments. The price of S19j Pros has since decreased over 70%. In light of the sharp reduction in the price of miners, the drop in bitcoin price, and recent pending advancements in miner technology, it was critical to extricate the company from this contract," said Sphere 3D (ANY) CEO Patricia Trompeter.