Sphere 3D Corp. (ANY) Stock Price and Forecast: Is Sphere 3D ANY good?

• Sphere 3D is one of the retail trader's newest stocks to play.
• Nasdaq: ANY is highly volatile with a low market cap.
• ANY stock has spiked from $5 to over $11 in a number of days.

3D Sphere is one of the new names picked up on by retail traders, possibly due to several leading influencers on social media talking up prospects for the stock. ANY stock trended heavily on Twitter last week as the stock swung around wildly. The stock did manage to spike above $11 before coming back down to trade around $5. So what is Sphere 3D? Sphere 3D is thus described from its own investor relations website: Sphere 3D "delivers containerization, virtualization and data management solutions via hybrid cloud, cloud and on-premise implementations."

Sphere 3D (ANY) stock news

The most interesting aspect that appears to have grabbed the attention of retail investors is the company's move into crypto currency mining, in particular Bitcoin. Sphere 3D has a merger with Gryphon Digital Mining to tie up, and this will bring ANY into the world of crypto and Bitcoin mining. Gryphon also boasts an impressive list of executives that come with an elite corporate pedigree. 

• CEO and Director Rob Chang - Former CFO of Riot Blockchain & former MD at Cantor Fitzgerald
• President Dan Tolhurst - Former senior strategist at Netflix & Disney
• Chair of the Board Brittany Kaiser - Blockchain regulatory expert & congressional subcommittee member
• Independent Director Richard Cooperstein - Partner at Media Investment Group & former head of International Business Development at Facebook
• Independent Director Joseph Nejman - Entrepreneur in residence at Tomorrow Ventures & former strategic partner of development at Google.

As part of the deal Gryphon investors will get 111 million shares in Sphere 3D. The transaction has been approved by both companies already and is set to close in Q3 2021. On Tuesday, Sphere 3D announced it had secured an order for 60,000 Antminers, which is a huge order by the standards of the Bitcoin mining industry. "We have raised in excess of $200 million dollars over the last few weeks and are deploying a portion of that capital toward our initial purchase of miners in order to establish ourselves as a top miner in the industry," says Peter Tassiopoulos, Sphere 3D's CEO.  "With the first miners up and running at Gryphon and a total of 7,200 being delivered to them, the combined company has 67,200 state-of-the-art machines in que for delivery, which will make us one of the top miners measured by exahash in the industry."

Sphere 3D stock technical analysis

The stock did have an impressive spike on September 2, closing over 40% higher. Some popular Twitter accounts talked positively about the stock with many comparing it to SPRT. This is where caution is needed. Just remember that short positions in a merger usually roll into the new entity. SPRT merged to become part of a much larger entity, so a short squeeze was avoided. Could this also be the case here?

Currently, ANY has a free float of 54 million shares but Gryphon investors are due to get 111 million shares in ANY. According to Reuters, "Upon completion of the merger, Gryphon shareholders will be issued 111,000,000 common shares of Sphere 3D, subject to adjustment." If you are trading purely for a short squeeze, then caution is needed.

From the chart, the recent fall has seen some stabilisation around the $5 to $6 zone. This is not a bullish sign as a continuation of a spike generally will form a flag pattern toward the high end of the flagpole. In this case, our flag is at half-mast, so not bullish but also not bearish. The current range has support at $5.50 with resistance at $7.50. Volume thins out below or above those levels, making volatility possible and likely in this one. Please use stops or manage risk carefully.