Sphere 3D plans to issue additional shares to raise $10.3 million, with shareholder equity facing a dilution of approximately 50.9%

According to CryptoSlate, Bitcoin mining company Sphere 3D has revised its on exchange stock issuance plan due to cash flow shortages and plans to sell up to $10.3 million worth of stocks. Calculated at $2.35 per share, the full issuance will add approximately 4.38 million shares, increasing the total share capital to approximately 13 million shares, with a dilution rate of approximately 50.9%. As of March 31st, Sphere 3D held cash of $3.15 million and 26.2 bitcoins, and earned $2.79 million in the first quarter through the sale of bitcoins. The audit reports of Sphere 3D and Cathedral mention ongoing operational risks, with Cathedral experiencing a net cash outflow of CAD 1.17 million in the first quarter.