Company: ANY
Filing Date: 2025-08-05
Form Type: 10-Q
Source: 0001591956-25-000009
Chunk: 64

Company: Sphere 3D Corp.
Filing Date: 2025-08-05
Form: 10-Q
Item: Part I, Item 8
Chunk 64
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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 revenues during the first six months of 2025 and 2024 were $4.5 million and $8.3 million, respectively, representing a decrease of $3.8 million was primarily due to lower hosting fees related to machines taken offline to be relocated and the transition of removing older mining machines and replacing them with newer generation machines.

25

General and Administrative Expense

General and administrative expenses were $5.3 million and $6.4 million for the first six months of 2025 and 2024, respectively. The decrease of $1.1 million was primarily due to a decrease of $1.5 million in share-based compensation primarily related to forfeited awards, a decrease of $0.4 million in employee and related expenses primarily related to a decrease in headcount, a $0.3 million decrease in insurance and property tax expenses, and a $0.2 million decrease in director fees. These decreases were offset by an increase of $0.8 million in costs related to strategic business growth efforts and an increase in legal fees of $0.4