New York, June 1, 2026, 19:04 (EDT)
- Sphere 3D closed at $4.02, up 111.6% for the day. The stock was last seen at $4.95 after hours as of 7:01 p.m. EDT.
- Sphere 3D closed its transaction with Cathedra Bitcoin and brought online 53 megawatts of active data-center capacity, the company said.
- Cathedra shares will be pulled from the TSX Venture Exchange and OTCQB after trading wraps up June 2, reported.
Sphere 3D Corp stock shot up over 100% on Monday, reacting to news of its all-stock merger deal with Cathedra Bitcoin. Traders looked at the tie-up as a possible reset for the Nasdaq-listed bitcoin miner.
Shares jumped 111.6% to finish at $4.02. The stock started the day at $3.17 and reached as high as $4.83 before the close. Volume hit 118.7 million shares, well above the daily average from last week. In after-hours trading, the stock was recently quoted at $4.95, up 23.1%.
Sphere has dropped its label as a minor bitcoin miner tinkering with machines. The company said it now owns Cathedra outright, bringing managed power to 53 megawatts spread across five locations in Iowa, Kentucky and Tennessee. Installed proprietary mining hash rate stands at 1.2 exahashes per second—the amount of computing power used to mine bitcoin.
“Closing this combination marks a significant milestone for both companies and our shareholders,” Joel Block said in a statement after being named CEO of the merged group. According to Block, the merger puts Cathedra’s “energy-centric infrastructure platform” on Sphere’s public company base and taps into its balance sheet. TMX Newsfile
Sphere said once the deal is done, the merged company will get a pipeline topping 100 megawatts for expansion. The company is looking at moving into high-performance computing and AI infrastructure next. High-performance computing pulls large amounts of power and runs dedicated machines for demanding jobs like AI training, going beyond crypto mining.
Sphere’s latest move puts it alongside bigger crypto miners and utilities using energy for AI data-center expansion. Hut 8 last month signed a 15-year, $9.8 billion lease for an AI data center campus in Texas, Reuters reported. Core Scientific is pushing high-density computing as a main product.
Sphere is still small. Google Finance put the company’s market cap at $17.1 million and 4.24 million shares outstanding after Monday’s trading. That’s well under larger competitors like Hut 8 and Core Scientific, both of which had market caps north of $9 billion Monday, market data showed.
Cathedra’s shareholder base shifts in the deal. Holders of Cathedra subordinate voting shares picked up 0.123014 Sphere shares per Cathedra share. Multiple voting shareholders got 12.3014 Sphere shares for each multiple voting share. Some top Cathedra holders couldn’t go above a 7% stake after the deal. Their extra shares were converted to non-voting preferred stock.
Sphere reported first-quarter revenue of $1.9 million, down from $2.8 million the previous year. Net loss came in at $4.1 million, or $1.18 a share. CEO Kurt Kalbfleisch said in May that Sphere focused on mining efficiency and longer-term growth plans.
But there’s a catch. The risk section shows the deal could run into problems: integration might drag on, financing could get harder to secure, power could cost more or not deliver as expected, and bitcoin mining profits are tied to the coin’s price and network difficulty. Bitcoin traded around $71,309, down 3.5%, the data showed.
Sphere picked up some market attention for expanding its reach and coming out with a new pitch. Now traders are watching to see if the company can use its cheap power and recent Nasdaq listing to build consistent cash flow. Shares are still trading with the profile of a smaller player.
