Sphere 3D (NASDAQ:ANY) is inching higher today, as it appears that retail investors are trying to short squeeze the stock. A rapidly increasing trading volume and ANY stock’s short interest are adding up to a possible price mooning.
Sphere 3D is a Canadian cloud-based data management company. Recently, the company announced that it would be joining Gryphon Digital Mining in a merger. Gryphon, a Bitcoin (CCC:BTC-USD) mining operation, is looking to utilize Sphere’s data containerization to streamline its mining processes.
Investors can look for the merger to close at the end of Q3.
Yesterday, Gryphon announced a hefty purchase of crypto mining products. The $48 million transaction is landing Gryphon 7,200 S19J Pro mining rigs from Bitmain Technologies. This purchase will vastly increase Gryphon’s hashing power. With this news, ANY stocked jumped nearly 30%.
ANY Stock Looks to Continue Gains With a Short Squeeze
These pieces of optimistic news are doing well to boost ANY in the short term while it nears the actualization of its merger with Gryphon. However, institutions are quite bearish on the stock. Right now, ANY stock has a short volume ratio of over 34%.
Retail traders are taking notice, and as a result, trading volume of ANY is up huge today. Nearly 12 million shares are trading hands in the first hours of today’s session, as compared to the average daily volume of 6.5 million. Buyers are priming a short squeeze, likely thanks to a shout out from stock market influencer Will Meade. However, investors should note that there is not much chatter around Sphere 3D over on r/WallStreetBets.
$ANY closed above the important $3.20 resistance level yesterday if volume comes in today this will go to $5, especially since $ANY has 36% short interest. pic.twitter.com/vI2gYm5ypP
— Will Meade (@realwillmeade) July 9, 2021
Investors shall wait and see where the price goes throughout the afternoon. As of right now, ANY is up over 4% on the day.
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On the date of publication, Brenden Rearick 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.
