Applied Blockchain Provides Operational and Guidance Updates
July 18 2022 - 4:05PM
Applied Blockchain, Inc. (Nasdaq:
APLD) ("Applied Blockchain" or the
"Company") today provided updates on its operations and
financial guidance.
-
Updated fiscal fourth quarter 2022 (ended May 31, 2022) financial
guidance with revenue increasing at the midpoint from $5.95 million
to $7.20 million.
-
Datacenter in Jamestown, North Dakota is partially offline due to
unexpected equipment failure at the substation powering the
facility; the power provider is working diligently to restore
service, which is expected by early September.
-
Construction of Applied Blockchain’s 200-Megawatt (“MW”) facility
in Garden City, Texas is progressing with several buildings erected
and electrical equipment delivered.
- The
Company is in the design and pre-construction phase of a third
co-hosting datacenter in North Dakota; once operational, it is
expected to bring Applied Blockchain’s total hosting capacity to
500MW.
“Since we reported our fiscal third quarter 2022
results in mid-May, our operations have continued at or better than
expectations, driving our financial performance above the guidance
we previously communicated,” said Applied Blockchain Chairman and
CEO Wes Cummins. “While we have a short-term setback with part of
our capacity being offline in Jamestown for several weeks, the
Company has never been in a better position. Our new 200MW hosting
agreement with Marathon, announced separately today, not only
reinforces the high level of demand for hosting, but the structure
of the agreement allows us to accelerate our buildout without
equity dilution. Additionally, our third co-hosting datacenter is
expected to give us a clear path to 500 MWs online early next
calendar year, which we estimate can generate $100 million of
Adjusted EBITDA on an annual basis.”
Fiscal Fourth Quarter 2022 Guidance
UpdateThe Company provided fiscal fourth quarter 2022
financial guidance during its fiscal third quarter 2022 earnings
conference call, which included projected revenue of between $5.7
million and $6.2 million and projected Adjusted EBITDA of between
($4.0) million and ($4.6) million.
Since providing this guidance, performance from
Applied Blockchain’s first Next-Gen co-hosted datacenter in
Jamestown, North Dakota has been positive and better than
management’s assumptions supporting the original guidance.
Accordingly, the Company is updating its fiscal fourth quarter 2022
financial guidance for projected revenue to a range of $7.0 to $7.4
million. Since the Company is still finalizing its fiscal fourth
quarter financials, updated Adjusted EBITDA guidance cannot be
reasonably provided at this time, however, Adjusted EBITDA is
expected to be a narrower loss than original guidance given the
higher revenue.
Jamestown, North Dakota Co-Hosting
Facility Update (100MW)As previously reported, Applied
Blockchain’s first 100MW Next-Gen co-hosting facility in Jamestown,
North Dakota began energizing in late January 2022, and had over
90MW online as of June 2022. Recently there was an unexpected
equipment failure at the substation powering the facility,
resulting in a partial outage of approximately 50%. The Company is
engaging regularly with the power provider, who is diligently
working to remediate the equipment failure to restore full
capacity, which is expected by early September. The Jamestown
facility was not damaged and remains fully operational and capable
of hosting the entire 100MW of capacity when sufficient power is
available again.
Garden City, Texas Co-Hosting Facility
Update (200MW) Construction of Applied Blockchain’s second
datacenter began in late April 2022 as previously disclosed in its
fiscal third quarter earnings release issued on May 13, 2022. The
facility, co-located with a wind farm, is in Garden City, Texas
with planned capacity of 200MW. The first buildings have been
constructed and the majority of the electrical equipment required
is on site. The Company is planning to energize the Garden City
facility late in the third calendar quarter of 2022.
Third Co-Hosting Facility
Update The Company has executed a Letter of Intent (LOI)
with a utility and is in the late stages of design and
pre-construction for a third co-hosting facility, which will be
located in North Dakota. Groundbreaking is planned for the third
calendar quarter of 2022. A meaningful portion of the power
capacity at this site has already been contracted by Marathon
Digital Holdings, Inc. (Nasdaq: MARA), which is discussed in a
separate press release issued today.
About Applied BlockchainApplied
Blockchain, Inc. (Nasdaq: APLD) is a builder and operator of
next-generation data centers across North America, which provide
substantial compute power to blockchain infrastructure and support
Bitcoin mining. The Company has partnered with some of the most
recognized names in the industry to develop, deploy, and scale its
business. Find more information at www.appliedblockchaininc.com.
Follow us on Twitter at @APLDBlockchain.
Forward-Looking StatementsThis
release contains "forward-looking statements" as defined in the
Private Securities Litigation Reform Act of 1995 regarding, among
other things, future operating and financial performance, product
development, market position, business strategy and objectives.
These statements use words, and variations of words, such as
"continue," "build," "future," "increase," "drive," "believe,"
"look," "ahead," "confident," "deliver," "outlook," "expect," and
"predict." Other examples of forward-looking statements may
include, but are not limited to, (i) statements of Company plans
and objectives, including our evolving business model, or estimates
or predictions of actions by suppliers, (ii) statements of future
economic performance, and (iii) statements of assumptions
underlying other statements and statements about the Company or its
business. You are cautioned not to rely on these forward-looking
statements. These statements are based on current expectations of
future events and thus are inherently subject to uncertainty. If
underlying assumptions prove inaccurate or known or unknown risks
or uncertainties materialize, actual results could vary materially
from the Company's expectations and projections. These risks,
uncertainties, and other factors include: decline in demand for our
products and services; the volatility of the crypto asset industry;
the inability to comply with developments and changes in
regulation; cash flow and access to capital; and maintenance of
third party relationships. Information in this release is as of the
dates and time periods indicated herein, and the Company does not
undertake to update any of the information contained in these
materials, except as required by law.
Investor Relations ContactsJeff Grampp, CFA or
Matt GloverGateway Group, Inc.(949) 574-3860APLD@gatewayir.com
Media ContactCatherine Adcock Gateway Group,
Inc.(949) 574-3860APLD@gatewayir.com
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