Applied Digital Announces Agreement to Sell Garden City Campus to Marathon Digital Holdings
March 15 2024 - 8:00AM
Applied Digital Corporation (Nasdaq: APLD) ("Applied Digital" or
the "Company"), a designer, builder, and operator of
next-generation digital infrastructure designed for
High-Performance Computing (“HPC”) applications, today announced
that it has entered into a definitive agreement to sell its 200
megawatt ("MW") campus in Garden City, TX to Marathon Digital
Holdings (Nasdaq: MARA) (“Marathon”) for a net purchase price of
approximately $87.3 million, with a gross purchase price of $97.3
million after adjustments contemplated in the purchase agreement.
In addition to the purchase price, this transaction will release
$12 million of restricted cash previously committed as collateral
for the site's letter of credit. The transaction is subject to
customary closing conditions and is expected to close in the second
quarter of calendar 2024.
Completed in 2023, Applied Digital's Garden City
campus provides hosting agreements for blockchain mining clients,
such as Marathon, under third-party arrangements. Applied Digital
exclusively focuses on infrastructure and support services and does
not currently own any equipment placed in the facility. Marathon
has been a significant customer at the Garden City campus,
operating under a multi-year colocation hosting agreement, and will
remain a customer at our North Dakota blockchain hosting
facilities.
"This strategic transaction represents a
purposeful pivot, equipping the Company to allocate financial and
operational resources toward strategic sites in North Dakota, as
well as bolstering our Balance Sheet strength. With a focused
emphasis on the building of our HPC data centers, we reinforce our
groundwork for enduring growth and operational excellence," said
Wes Cummins, CEO and Chairman of Applied Digital.
"Applied Digital has proven to be an invaluable partner,
exemplifying excellence in both the construction and management of
their data centers. As we anticipate the finalization of this
mutually beneficial transaction, we are confident it will enable
both companies to advance our long-term strategies with greater
efficacy, fostering a path towards continued success," said Fred
Thiel, Marathon’s Chairman and CEO.
About Applied DigitalApplied
Digital (Nasdaq: APLD) designs, develops, and operates
next-generation data centers across North America to provide
digital infrastructure solutions to the rapidly growing
high-performance computing (HPC) industry. Find more information at
www.applieddigital.com. Follow us on X (formerly Twitter) at
@APLDdigital.
About Marathon Digital HoldingsMarathon is a
digital asset technology company that focuses on supporting and
securing the Bitcoin ecosystem. The Company is currently in the
process of becoming one of the largest and most sustainably powered
Bitcoin mining operations in North America.
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," “project” 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 ContactsMatt Glover or Alex
KovtunGateway Group, Inc.(949) 574-3860APLD@gateway-grp.com
Media ContactBrenlyn Motlagh or Diana Jarrah
Gateway Group, Inc.(949) 899-3135APLD@gateway-grp.com
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