Sphere 3D shares surge 45.90% after-hours after announcing all-stock merger with Cathedra Bitcoin, expanding into AI/HPC.

Sphere 3D (NASDAQ: ANY) surged 45.90% in after-hours trading following the announcement of a merger with Cathedra Bitcoin (TSX-V: CBIT) in an all-stock transaction. The combined entity will retain Sphere 3D’s Nasdaq listing and name, with Cathedra shareholders receiving 49% of the merged company’s issued shares. The deal integrates Cathedra’s energy-efficient bitcoin mining operations and infrastructure expertise with Sphere 3D’s public market access and liquidity, while positioning the firm to expand into AI/high-performance computing (HPC) services. Cathedra’s CEO Joel Block will lead the new entity, signaling a strategic shift toward diversified revenue streams beyond bitcoin mining. The merger aligns with broader industry trends toward capitalizing on AI demand and optimizing energy infrastructure, driving optimism about the combined company’s growth potential and operational scalability.