Slide 1: Investor Presentation May 2022
INVESTOR PRESENTATION PRESENTATION May 2022
Slide 2: Disclaimer
DISCLAIMER This presentation has been designed to provide general information about Applied Blockchain, Inc. (“APLD” or the “Company”). Any information contained or referenced herein is suitable only as an introduction to the Company. The information contained in this presentation is for information
Slide 3: Investment Highlights
INVESTMENT HIGHLIGHTS 3 Strategic Partnership with Industry Leader Bitmain affiliate AntPool JV to receive financing from Bitmain affiliate AntPool to develop up to 1.5GW of hosting capacity Dedicated power/ infrastructure team with deep expertise in building Next - Gen data centers Rapid developmen
Slide 4: Experienced Leadership Team
EXPERIENCED LEADERSHIP TEAM 4 POWER & INFRASTRUCTURE DEVELOPMENT TEAM Wes Cummins, Chairman & CEO • B. Riley Asset Management, 2021 – Present, President • 272 Capital L.P., 2020 – Present, Founder and CEO • Nokomis Capital, 2012 – 2020, Research Analyst • B. Riley & Co, 2002 – 2011, President • Curr
Slide 5: Board of Directors
BOARD OF DIRECTORS 5 Wes Cummins • B. Riley Asset Management, 2021 – Present, President • 272 Capital L.P., 2020 – Present, Founder and CEO • Nokomis Capital, 2012 – 2020, Research Analyst • B. Riley & Co, 2002 – 2011, President • Current Board Member at Vishay Precision Group, Inc. (NYSE: VPG), and
Slide 6: Overview
6 o Infrastructure and colocation provider of next generation datacenters o High Performance Computing (HPC) to process intensive applications including Bitcoin mining o 55MW online - 45MW under development o 5GW planned over next 5 years o Bitmain/AntPool JV – Develop up to 1.5GW of hosting capacit
Slide 7: Recent Events
RECENT EVENTS 7 2021 2022 MARCH 2021 GMR partnership APRIL 2021 $16.5M preferred stock JUNE 2021 Developed Hosting strategy JULY 2021 $32.5M preferred stock AUGUST 2021 100MW ESA Executed SEPTEMBER 2021 Regulatory approval for long - term ESA OCTOBER 2021 185MW in hosting contracts 800MW by May 2023
Slide 8: Next-Gen Datacenters
NEXT - GEN DATACENTERS o Focused on computing power intensive applications o Require significant energy consumption, better suited for more remote geographies o Vastly different designs for cooling/layout o Do not require ultra high speed, low latency data connections 8 o Ultra high speed, low laten
Slide 9: Datacenter Construction
9 DATACENTER CONSTRUCTION
Slide 10: Market Opportunity
MARKET OPPORTUNITY 10 o 6+ GW 1 of Bitcoin mining capacity expected to move from China - $4.3B 1 in annual hosting demand o North America expected to be main beneficiary given reliable power options & strong hosting demand Near to Medium Term Tailwinds Long - Term Tailwinds o Next - Gen datacenters
Slide 11: Blue Chip Blockchain Partnerships Assist in Goal of Becoming Largest Provider
Blue Chip Blockchain Partnerships Assist in Goal of Becoming Largest Public Third - Party Next - Gen Datacenter Provider 11 o Leading designer of ASIC chips for bitcoin mining o Provides Applied Blockchain with financial resources o Funding evidenced by ownership in JV, and ultimately convertible in
Slide 12: Well-positioned to become largest public third-party Next-Gen hosting provider
Well - positioned to become largest public third - party Next - Gen hosting provider Strong demand for hosting and co - location services No direct competition with customers – APLD does not mine in Company - owned facilities 12
Slide 13: Site Level Strategy
SITE LEVEL STRATEGY Blue chip anchor tenant at each facility with a 3 - 5 year term Remaining capacity targets smaller - scale tenants with higher pricing and 18 - 36 month term 13 o Revenues are based on fixed USD price, not contractually linked to cryptocurrency prices o Long - term contracts prov
Slide 14: Large, Diversified Construction & Procurement Pipeline
LARGE, DIVERSIFIED CONSTRUCTION & PROCUREMENT PIPELINE 14 55MW currently online, 100MW expected online in 1H22 Planned expansion requires construction completion of additional buildings on our Jamestown, ND property and entry into second energy services agreement for 100MW by December 2022 Plans to
Slide 15: Site Selection Criteria
SITE SELECTION CRITERIA 15 GEOGRAPHICALLY DIVERSE ATTRACTIVE RETURN ON INVESTMENT LONG - TERM AGREEMENTS ENVIRONMENTALLY - CONSCIOUS Attractive locales with inexpensive/stranded, stable energy Favorable political and regulatory climates Minimize concentration risk Strict underwriting standards to ac
Slide 16: Example Hosting Economics
EXAMPLE HOSTING ECONOMICS 16 1. Actual results may vary significantly from illustrative and forward - looking figures presented herein, which are based on assumpt ions. 2. Hosting EBITDA is Hosting revenue less Hosting direct costs excluding depreciation and amortization related to our Hosting op er
Slide 17: Illustrative 5GW Annual Operating Model
Illustrative 5GW Annual Operating Model 1 Assumptions MW Live 5,000 Hosting Revenue ($’000) $2,715,600 Hosting Direct Costs ($’000) 1,629,900 % of Revenue 60.0% Target Hosting EBITDA 2,3 ($’000) $1,085,700 Margin 40% UNDERWAY 4 5GW GOAL TO DEVELOP 5 GW OF HOSTING CAPACITY OVER 5 YEARS 1. Actual resu
Slide 18: Real Estate Investment Trust (REIT) Transition
REAL ESTATE INVESTMENT TRUST (REIT) TRANSITION o APLD’s business model as a Next - Gen datacenter operator is intended to be conducive to a REIT structure o Comparable to REIT datacenter operators like Digital Realty Trust (DLR) and Equinix (EQIX), and specialty REIT operator Innovative Industrial P
Slide 19: Capitalization
Capitalization 19 In millions, except share price Pro Forma Stock Ownership Converted Preferred Stock Management Other IPO Shares GMR SparkPool Bitmain Share Price $3.54 Shares Outstanding 99.2 Market Capitalization $351.2 Debt $7.5 Cash $51.1 Preferred Stock $0.0 Net Debt ($43.6) Enterprise Value $
Slide 20: Investor Relations Contacts
20 INVESTOR RELATIONS CONTACTS