Bitcoin miner Sphere 3D disclosed that it could face approximately $2.2 million in supplemental US tariffs, before statutory interest, regarding Bitcoin mining equipment purchased in 2022 by a subsidiary it now owns.
According to an Aug. 24 filing, US Customs and Border Protection (CBP) treated the equipment as Chinese-origin goods. Sphere 3D stated that seller-provided import documents included a certificate of origin and a certificate of manufacture certifying that the miners were not of Chinese origin. The company called the allegation meritless and announced its intention to protest, though the exact amount payable remains uncertain.
The filing did not disclose CBP's origin analysis, the specific subsidiary or seller involved, the miner models, or the certificates themselves. It also left out whether Sphere 3D has accrued, paid, or bonded any amount, as well as the exact procedural trigger and protest deadline.
Liquidity and Financial Position
The potential $2.2 million charge represents about 77% of Sphere 3D's June 30 cash balance of over $2.8 million and roughly 11 times its reported working capital of $0.2 million. As of that date, the company also reported $5.9 million in current liabilities and held 20.5 Bitcoin valued at nearly $1.2 million. Subsequent to the balance sheet date, the company received $1.7 million in additional proceeds via an at-the-market equity program.
The company's financial disclosures also highlighted ongoing cash burn, noting over $9 million in first-half operating cash use. Management previously stated that recurring losses and negative operating cash flow created substantial doubt about the company's ability to continue operations without securing additional funding.
Separately, Sphere 3D continues to trade under the ticker ANY. Its previously approved corporate name change to DarkHorse Technologies and proposed DRK ticker remain pending.
