Sphere 3D faces $2.2 million U.S. tariff claim over hardware origin

Bitcoin mining company Sphere 3D has disclosed a potential $2.2 million supplemental tariff claim from U.S. Customs and Border Protection. The claim involves Bitcoin mining hardware purchased in 2022 by a subsidiary now owned by the company.

U.S. Customs and Border Protection has classified the equipment as being of Chinese origin. Sphere 3D has labeled this allegation “meritless,” stating that the import documents provided by the seller included certificates of origin and manufacture certifying the hardware was not from China. The company intends to protest the claim.

The potential charge, which does not include statutory interest, represents approximately 77% of the company’s reported cash balance as of June 30. This contingency poses a significant liquidity risk, as the amount is roughly 11 times the company’s reported working capital.