Sphere 3D will buy less BitFuFu hardware

Reducing the amount of equipment purchased is the last step to maintaining a healthy balance sheet.

Recent months have been particularly tough for mining companies due to the drop in the value of bitcoin and rising energy prices. To change the debt structure and pay the bills, miners have to sell their assets. For example, asics.

Many asic purchase contracts were signed back in 2021 at peak prices. Such was the case with the contract between Sphere 3D and BitFuFu. However, there were supply schedule violations on the part of the latter. It allowed renegotiating the deal on more favorable terms for Sphere 3D. The deposit of $106.9 million that was paid earlier will be set off by the delivery of the hardware with a hashrate of 1.7 EH/s. And the remaining 3.9 EH/s will not be redeemed.

Such restructuring allowed Sphere 3D to avoid high costs as the 60,000 miners specified in the contract were bought for 70% more than the current price.

According to the CEO of Sphere 3D:

Excluding the company from the contract is a critical event for the company, as the terms did not involve a market price adjustment.