Company: ANY
Filing Date: 2025-08-05
Form Type: 10-Q
Source: 0001591956-25-000009
Chunk: 32

Company: Sphere 3D Corp.
Filing Date: 2025-08-05
Form: 10-Q
Item: Part I, Item 1
Chunk 32
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 fees, and a $0.1 million decrease in insurance and property tax expenses. These decreases were offset by an increase of $0.3 million in costs related to strategic business growth efforts.

Depreciation and Amortization Expense

Depreciation and amortization expense was $1.7 million and $1.8 million for the second quarter of 2025 and 2024, respectively. The decrease of $0.1 million was primarily due to less depreciation related to our Bitcoin mining machines due to the disposal of machines.

Impairment of Property and Equipment

Impairment of property and equipment was nil and $0.9 million for the second quarter of 2025 and 2024, respectively, and the prior year related to idle mining equipment not expected to return to use. 

Loss on Disposal of Property and Equipment

Loss on disposal of property and equipment was $0.1 million and $0.7 million for the second quarter of 2025 and 2024, respectively, and related to the disposal of or sale of mining equipment.

Change in Fair Value of Bitcoin

Change in fair value of Bitcoin was a gain of $0.5 million and a loss of $0.1 million for the second quarter of 2025 and 2024, respectively. The gain or loss was the change in fair value of Bitcoin held, as well as the gains and losses from when Bitcoin was sold.

Non-Operating Income and Expenses

Investment Gain

Investment gain was $4.3 million and $7.8 million for the second quarter of 2025 and 2024, respectively, and related to realized and unrealized gains on our equity investment in Core Scientific Inc.

The First Six Months of 2025 Compared with the First Six Months of 2024

Revenue

We generated revenues of $5.8 million and $11.6 million during the first six months of 2025 and 2024, respectively. The $5.8 million decrease in revenue is primarily due to the April 2024 halving event, and the process of removing our older mining equipment and replacing them with newer generation machines. The refreshing of our mining equipment is expected to be an ongoing process through 2025 which may result in further fluctuations in exahash. During the first six months of 2025 and 2024, all of our revenue was derived from Bitcoin mining. 

Operating Expenses

Cost of Revenue (exclusive of depreciation and amortization expense)

Direct cost of