Seeking Alpha
2021-10-05 23:32:52

If Sphere 3D Gets Into Cryptomining, The Upside Potential Is More Than 25%

ANY offers information technology solutions and the ability to connect to cloud services, like Microsoft Azure, among other hybrid cloud capabilities.In 2021, everybody seems to be buying shares of ANY because of the announcement of a merger with Gryphon Digital Mining, Inc.In order to follow the steps of the cloud service industry, I expect that the management will be able to design new products and services.ANY may not only grow because of its cloud services, the management may also grow because of the global cryptocurrency market growth.I believe that ANY could deliver 18.5% sales growth, and FCF/Sales would grow from 25% to 45%. My assumptions are very optimistic. Notice that I am using a WACC of only 5%, a terminal FCF of $15 million, and an exit multiple of 57.5x, which imply a target price of $10.

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