Leading the Future
of Bitcoin Mining

Sphere 3D’s operations are growing at rapid deployment. In 2023, we plan to deploy 1.6 EH/s of one of the top efficient Bitcoin miners prioritizing sustainability-focused hosting facilities.

Sphere 3D

What is Bitcoin Mining?

Bitcoin is a decentralized digital currency that is exchanged on a peer-to-peer global network. Bitcoin Mining is the process that verifies all network transactions using sophisticated hardware, or “Miners”. All transactions are recorded in a publicly distributed ledger called a blockchain.

How does Bitcoin Mining work?

A Block is Formed

A Block is Formed

Multiple peer-to-peer Bitcoin transactions are pooled together to form a “block”.

Solving the Block

Solving the Block

Sophisticated hardware, or “miners”, compete to verify the block by solving a complex puzzle.

Verification

Verification

Once a miner has solved the block, all of the Bitcoin transactions in that block are now verified by the network.

Blockchain

Blockchain

The verified block attaches to a chain of already verified blocks called a blockchain.

Reward

Reward

The successful miner is rewarded with newly issued Bitcoin.

What is involved in a Bitcoin mining business?

Revenue Streams

On average, a block is solved every 10 minutes on the Bitcoin network. This presents tremendous opportunity to scale mining operations for exponential returns. Revenue is made up by two streams: block rewards and transaction fees collected for each block.

Mining Costs

Variable costs for Bitcoin mining include the electricity required to operate the hardware, and fees paid to hosting providers. Fixed costs include acquisition of mining hardware.

Bitcoin Miner Profitability

Mining hardware’s energy consumption is measured in joules per terahash (J/Th), and a hashing speed measured in terahashes per second (Th/s).

Miner profitability threshold represents the maximum miner efficiency in J/T to profitably operate. Alternatively, this threshold can be viewed as a miner’s breakeven operating efficiency.

Sphere 3D Mining Operations

Sphere 3D has the ability to control:

Corporate Expenses

Corporate Expenses

Hash Rate

Hash Rate

Cost of Electricity ($/kWh)

Cost of Electricity ($/kWh)

Power Usage Effectiveness (PUE)

Power Usage Effectiveness (PUE)

Through strong relationships with premier hosting providers and negotiating power from scale, we can reduce PUE and electricity costs to extend the profitable life of our hardware.

Factors that are out of our control include:

Price of Bitcoin

Price of Bitcoin

Block Rewards and Blocks Per Year

Block Rewards and Blocks Per Year

Network hash rate

Network hash rate