Sphere 3D Targets AI And HPC Conversion Of Bitcoin Mining Power Assets After Cathedra Combination

Sphere 3D is repositioning parts of its Bitcoin-mining infrastructure for AI and high-performance computing workloads after combining with Cathedra Bitcoin, seeking to capture more economic value from already-energized power capacity rather than using every available megawatt exclusively for cryptocurrency mining.

The Cathedra combination closed June 1, creating a platform with approximately 53 MW of operating capacity and more than 100 MW of potential expansion capacity. Sphere 3D is now evaluating which sites can support a broader digital-infrastructure strategy.

Management’s thesis centers on the scarcity of power that is already interconnected and available. Sphere 3D believes a megawatt deployed for AI or HPC can generate substantially more economic value than the same power used for digital-asset mining, creating an incentive to convert suitable facilities.

At Hopkinsville, Kentucky, Sphere 3D is evaluating conversion of an existing approximately 15 MW facility while planning around the potential development of a new 50 MW data center. The broader site plan contemplates a proposed 65 MW substation, along with possible incremental capacity elsewhere in the portfolio.

The company is also preserving flexibility in its existing mining infrastructure. It signed Bitdeer co-mining agreements covering 30 MW, structured so that sites can potentially be redirected toward AI or HPC uses in the future. One location had been installed, with the other two expected to be operating before November.