Sphere 3D (NASDAQ:ANY) has become one of the hottest stocks in the market of late. Indeed, this company is now increasingly viewed as a roundabout ways of investing in the cryptocurrency sector. Via an upcoming merger with Gryphon Digital, Sphere 3D appears to be looking to shift its business model in a completely different direction. Accordingly, retail investors have targeted ANY stock lately for a number of reasons.
First, Sphere 3D is a company with a core business model of providing data management and application virtualization services to clients. A high-tech business, this company’s growth profile fits with that of retail investors.
Secondly, this is a company that has held a higher-than-average short interest for some time. Accordingly, as a potential short-squeeze candidate, ANY stock has surged and fallen numerous times this year.
However, it’s that aforementioned merger with Gryphon Digital that investors are looking at today. Let’s dive into why ANY stock is down approximately 15% today.
ANY Stock Sinks on Delays to Crypto-Related Merger
Today, a number of reports highlight the unfortunate reality that Sphere 3D will be delaying its merger with Gryphon Digital. Sphere 3D announced that this merger is likely to be delayed one quarter. Effectively, investors won’t see the merger take place until some time in the first quarter of next year.
What’s problematic about this delay is that it’s not the first one. Investors may note that, as per the company’s original filing, this deal was supposed to close in Q3. It was subsequently delayed to Q4, until this delay pushed the merger to next year.
For those looking for some sort of closure with this whole deal, these delays aren’t good. Additionally, investors may feel the need to speculate for reasons as to why this deal hasn’t gone through already.
The reasons for merger delays can vary. In this case, it appears the complex nature of the deal, as well as the time needed to secure regulatory and shareholder approvals, is to blame. Accordingly, perhaps there’s nothing to see here.
That said, ANY stock is definitely volatile. Accordingly, investors may want to take a prudent approach to sizing such positions in a well-diversified portfolio.
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.
