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    Weird Moves of Sphere 3D Corp. (ANY) After Scrapping Merger with Gryphon Digital Mining

    By Gule Rukhsar

    Apr 05,2022

    11:37 PM UTC

    Sphere 3D Corp. (ANY) stock had a weird after-market session on Monday with the stock initially sinking by over 25% only to later surge by 32.26%. Luckily, the stock closed the day at a price of $2.87 per share with a nice gain. This downfall-then-converted-into-upsurge followed a slight decline of 1.81% at $2.17 in the prior session.

    What’s Going on with ANY?

    After the bell on Monday, the company shared that it has scrapped the long-awaited merger with Gryphon Digital Mining Inc. The merger termination was a mutually agreed-upon decision of both companies.

    Source: Unsplash

    Previously announced in June 2021, the merger agreement was then amended in December 2021, to be finally canceled on Monday. The companies deemed changing market dynamics, their financial positions, and the large passage of time among others as the factors driving the termination. While having terminated the merger, the companies still declared to proceed with their Master Services Agreement as previously planned and disclosed. Both the companies will continue to leverage each other for driving growth and focus on strategic opportunities.

    Crypto Mining Industry

    The industry has remained highly volatile with its stocks being on a roller-coaster ride. While the crypto boom imparted nice gains, bearishness was prevailed due to the debate about its huge costs and energy use. As expectedly crypto industry moves into consolidation over the coming years, and most miners are recasting themselves as eco-friendly. With most crypto mining stocks being undervalued, there is a huge potential for future bullish trends in the sector.

    ANY’s Future Outlook

    The recent public debutant due to its 2021 IPO and increased operating costs, reported a decline in its revenue as well as earnings. But this does not mark the stock for further decline altogether. With the purchase and delivery of a huge number of Bitcoin miners still ongoing in 2022, ANY seems to be on track for a hit year. If fully operational, the new wave of miners will significantly improve the company’s 2022 earnings and revenue.

    Conclusion

    The termination news when shared caused a frenzy in ANY investors as a sell-off was initiated in the aftermarket. Soon after the news, the stock plunged down by more than 25% as investors responded in a confusion. But slowly as the haze cleared and investors gained some sense, it seems they found the termination and continued MSA of the companies a rather wise move. Thus, the stock eventually made a recovery and went up by over 32%.

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