Sphere 3D Corp. (NASDAQ: ANY) and Cathedra Bitcoin Inc. provided an update on their proposed business combination, which remains expected to close pending customary conditions and approvals, according to a company statement.

The combined company would initially operate 53 megawatts of managed power capacity across five data centers in Iowa, Kentucky, and Tennessee. The merger aims to create a digital infrastructure platform focused on power-optimized operations for compute-intensive applications.

Cathedra recently announced a hosting agreement that would utilize approximately 80% of the 15 MW capacity at its Shire site in Kentucky, representing roughly 25% of Cathedra's current hosting capacity. This agreement establishes what management described as a stable revenue stream.

The transaction is designed to combine Sphere 3D's Bitcoin mining operations with Cathedra's data center infrastructure. Cathedra currently operates four data centers totaling 45 megawatts in Tennessee and Kentucky, along with Bitcoin mining equipment producing approximately 400 PH/s of hash rate.

"Digital infrastructure is increasingly being defined by access to power, deployment agility, and capital discipline," said Kurt Kalbfleisch, CEO of Sphere 3D. "We believe the proposed combination positions the company to compete more effectively in this environment."

The companies plan to focus on integration execution and asset optimization following the transaction's completion. The combined entity would pursue opportunities across high-performance computing, artificial intelligence infrastructure, and other digital infrastructure applications.

Sphere 3D operates as a Bitcoin miner focused on expanding its digital asset mining operations. Cathedra develops and operates digital infrastructure assets across North America with operations aimed at maximizing per-share Bitcoin holdings.