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Sphere 3D faces possible $2.2M US tariff claim on 2022 Bitcoin miners

The potential charge would be about 77% of the company’s reported cash as of June 30, and Sphere 3D said it plans to protest.

Reported · Written up by our desk · Market Structure

Crypto miner Sphere 3D said it could face about $2.2 million in supplemental US tariffs, before interest, tied to Bitcoin miners purchased in 2022 by a subsidiary it now owns, according to an Aug. 24 filing covered by CryptoSlate.

The company said US Customs and Border Protection treated the equipment as Chinese-origin goods, while Sphere 3D argued the allegation is meritless. It stated that seller-provided import documents included a certificate of origin and a certificate of manufacture certifying the miners were not of Chinese origin, and said it plans to protest.

In its June 30 balance sheet, Sphere 3D reported over $2.8 million in cash, about $0.2 million in working capital, and roughly $5.9 million in current liabilities, with 20.5 BTC valued at nearly $1.2 million. CryptoSlate reported that the $2.2 million possible charge before interest equals about 77% of cash, and roughly 11 times working capital.

Sphere 3D also disclosed it received $1.7 million of additional proceeds through its at-the-market equity program, after noting recurring losses and negative operating cash flow had raised substantial doubt about its ability to continue without more funding. The filing did not quantify statutory interest or specify a protest deadline, though federal customs rules generally provide importers 180 days after a protestable CBP decision.

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