Business
Applied Digital Announces Agreement to Sell Garden City Campus to Marathon Digital Holdings
• Divestiture Reflects Strategy to Focus on Strategic HPC Sites in North Dakota • Redirects Resources and Strengthens Balance Sheet DALLAS, March 15, 2024
About this update from Applied Digital Corporation
[{"type":"text","content":"• Divestiture Reflects Strategy to Focus on Strategic HPC Sites in North Dakota • Redirects Resources and Strengthens Balance Sheet DALLAS, March 15, 2024 (GLOBE NEWSWIRE) -- 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 CE...