Company: ANY
Filing Date: 2025-11-04
Form Type: 10-Q
Source: 0001591956-25-000014
Chunk: 50

Company: Sphere 3D Corp.
Filing Date: 2025-11-04
Form: 10-Q
Item: Part I, Item 8
Chunk 50
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observable inputs (Level 3). 

4.Bitcoin

The following table presents the activities of Bitcoin (in thousands):Balance at January 1, 2025$1,394 Revenue recognized from Bitcoin mined8,458 Proceeds from sale of Bitcoin(7,637)Change in fair value of Bitcoin373 Balance at September 30, 2025$2,588 The following table presents Bitcoin holdings (in thousands except for number of Bitcoin):September 30,2025December 31,2024Number of Bitcoin held22.714.9Carrying basis of Bitcoin$2,586 $1,450 

13

For the three months ended September 30, 2025 and 2024, the Company had a realized gain of $0.2 million and $2,000, respectively, on the sale of Bitcoin. For the nine months ended September 30, 2025 and 2024, the Company had a realized gain of $0.3 million and $0.6 million, respectively, on the sale of Bitcoin. All additions of Bitcoin were generated by the Company’s Bitcoin mining operations. All dispositions of Bitcoin were the result of sales on the open market and used to fund the Company’s operations. The Company's Bitcoin holdings are not subject to sale restrictions and do not serve as collateral for any agreements. As of September 30, 2025 and December 31, 2024, the Company held no other cryptocurrency.

5.    Note Receivable

Rainmaker Promissory NoteIn September 2020, the Company entered into a Senior Secured Convertible Promissory Note with Rainmaker Worldwide Inc. (the “Rainmaker Note”), pursuant to which the Company loaned Rainmaker Worldwide Inc. (“Rainmaker”) the principal amount of $3.1 million. The Rainmaker Note is secured as a registered lien under the Uniform Commercial Code and the Personal Property Security Act (Ontario) against the assets of Rainmaker and bears interest at the rate of 10.0% per annum. In January 2025, the Company and Rainmaker entered into Amendment No. 4 to the Rainmaker Note and the principal amount was revised to $4.6 million and the due date was extended to January 14, 2026, at which time all principal and accrued interest is due and payable. The Company has the right, at any time, to convert all or any portion of the then outstanding and unpaid Rainmaker