Today, investors in Sphere 3D (NASDAQ:ANY) are seeing impressive gains. Shares of ANY stock are currently up nearly 30% on more than four times the average daily volume today.
This move is impressive and follows similar spikes in this stock in the past. On a year-to-date basis, ANY stock has been a four-bagger for patient investors. Today, it appears investors are pricing in two key catalysts as reasons to own this stock today.
As a data management and virtualization company, Sphere 3D has seen a lot of investor interest of late. This small cap company currently holds an equity valuation of only $150 million after today’s rise. Accordingly, investors bullish on the potential of Sphere 3D’s underlying business model appear willing to take a flyer on this company. This is a high-risk, high-reward play in a hypergrowth tech segment. Accordingly, given the risk-on sentiment in the market in recent days, it’s unsurprising to see this rise.
That said, let’s dive into the two key catalysts investors are watching with Sphere 3D today.
ANY Stock Higher on Key Catalysts
The first key catalyst investors are looking at with Sphere 3D is the company’s involvement in a newly listed special purpose acquisition company (SPAC). Sphere 3D has an indirect interest in Minority Equality Opportunities Acquisition (NASDAQ:MEOAU). This past week, shares of MEOAU stock began publicly trading, providing Sphere 3D investors with essentially a call option on how this SPAC performs.
Now, given the recent turmoil in the SPAC and de-SPAC space, perhaps there’s nothing to see here. However, investors looking for equality-based investment opportunities may view ANY stock as a way to gain exposure to this growing trend.
Secondly, Sphere 3D has become the latest company to pursue a merger with a crypto miner. The company announced earlier in June that it would be merging with Gryphon Digital Mining in a deal that is expected to close this coming quarter. Investors seem eager to buy into Sphere 3D ahead of this merger. Indeed, given the momentum the crypto space has seen of late, today’s price action makes sense. Additionally, Gryphon’s focus on sustainable crypto mining (using renewable energy) is of increased attractiveness to investors today.
On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
