Sphere 3D: Strategic Cathedra Merger and Capacity Expansion Underpin Buy Rating and $3 Target

In a report released today, Kevin Dede from H.C. Wainwright maintained a Buy rating on Sphere 3D, with a price target of $3.00.

Kevin Dede has given his Buy rating due to a combination of factors tied to Sphere 3D’s strategic merger with Cathedra and its operational discipline. He views the combination as a logical step toward gaining scale in power access, with Sphere surviving the merger and Cathedra shareholders receiving a meaningful equity stake that should better position the combined company for growth and capital access.

Dede also highlights Sphere 3D’s recent financial performance, emphasizing modest mining revenue growth alongside significant cuts to SG&A that demonstrate disciplined expense management. He expects the combined leadership team and Cathedra’s 53MW of existing capacity plus a 100MW development pipeline to provide a solid foundation for both bitcoin mining and future high-performance computing and AI-related opportunities, supporting his maintained $3 price target and Buy rating.