Company: ANY
Filing Date: 2025-11-04
Form Type: 10-Q
Source: 0001591956-25-000014
Chunk: 68

Company: Sphere 3D Corp.
Filing Date: 2025-11-04
Form: 10-Q
Item: Part I, Item 8
Chunk 68
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 and 2024.

Loss on Disposal of Property and Equipment

Loss on disposal of property and equipment was $0.8 million and nil for the third quarter of 2025 and 2024, respectively, and related to the disposal of or sale of mining equipment.

Impairment of Property and Equipment

Impairment of property and equipment was $0.5 million and nil for the third quarter of 2025 and 2024, respectively, and related to unrepairable mining equipment. 

Change in Fair Value of Bitcoin

Change in fair value of Bitcoin was a gain of $0.1 million for the third quarter of 2025 and an immaterial loss for the third quarter of 2024. 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.

26

Non-Operating Income and Expenses

Investment Gain (Loss)

Investment gain (loss) was a loss of $0.2 million and gain of $2.4 million for the third quarter of 2025 and 2024, respectively, and related to realized and unrealized gains and losses on our equity investment in Core Scientific Inc.

Other Income, Net

Other income, net was immaterial and $2.9 million for the third quarter of 2025 and 2024, respectively. The third quarter of 2024 other income, net, is primarily related to the early termination of a hosting agreement.

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

Revenue

We generated revenues of $8.5 million and $14.0 million during the first nine months of 2025 and 2024, respectively. The $5.5 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, offset by an increase in the fair value of Bitcoin. 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 nine 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)

During the first nine months of 2025 and 2024, direct cost of revenues were $6.5 million and $11.0 million, respectively. The $4.5