Sphere 3D and Cathedra announced that their proposed business combination remains on track to close in the near term upon satisfaction of customary closing conditions and required approvals. The transaction aims to merge digital infrastructure assets and management teams to create a unified, power-optimized platform.

Upon closing, the combined company will operate 53 MW of managed power capacity across five data centers in Iowa, Kentucky and Tennessee. Cathedra’s new hosting agreement will utilize approximately 80% of its 15 MW Shire site—representing 25% of its current hosting capacity—and establish a stable, long-term revenue stream.

The merged platform will adopt a modular, capital-disciplined infrastructure model optimized for fast deployment, power efficiency and flexibility. Management expects this architecture to support AI, high-performance compute and other high-density workloads, improving infrastructure utilization and capital efficiency.

Following closing, leadership will focus on integrating operations, optimizing assets and refining power strategies. The company will evaluate new workload opportunities and potential expansions while providing updates on the closing date and other material developments.