Sphere 3D Corp., operating under the name DarkHorse Technologies (NASDAQ: ANY), said it expects to raise $5 million through a private placement of 1,666,661 units priced at $3.00 per unit, while simultaneously agreeing to sell its Iowa site for $1.5 million and a legacy fleet of roughly 5,500 mining machines for approximately $3 million.
Each private-placement unit includes one common share and a five-year warrant to purchase one additional share at $3.50. Three directors, including Board Chairman Timothy Hanley and CEO Joel Block, subscribed for 333,332 units totaling about $1 million. The securities are subject to a six-month contractual lock-up period, and the transaction is expected to close on or about Thursday, subject to customary closing conditions.
In addition to the asset sales, the company expects to recover approximately $500,000 in utility deposits and prepayments associated with the Iowa facility. Following the sale, Sphere 3D will own and operate roughly 50 megawatts of energized capacity across four sites in Tennessee and Kentucky.
The company also secured an option to acquire approximately 20 acres in Hopkinsville, Kentucky, where it plans to develop a proposed 50-megawatt data center supported by a 65-megawatt substation. The company estimates the development will cost between $8 million and $10 million, though the proposal has not yet received all requisite regulatory approvals.
Funds from the private placement and the various asset sales will be directed toward AI and high-performance computing development in the Tennessee Valley Authority region, marking a strategic shift away from the company's earlier cryptocurrency mining operations.
