Applied Blockchain, Inc.

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General Information
Business:
(Note: This is NOT an IPO. This is a NASDAQ uplisting from the OTC Pink Markets. Applied Blockchain revised the terms of its public offering to 8.57 million shares – up from 3.24 million shares – and cut the price range to $6 to $8 – down from its initial price range of $16.54 to $20.54 – in an S-1/A filing dated April 12, 2022. On April 7, 2022, the last reported sale price of our common stock on the OTC Pink was $18.84 per share, as adjusted for a reverse stock split of 1-for-6.)
We are building Next-Gen datacenters, which are designed to provide massive computing power. Our first facility was constructed in North Dakota, and as of Feb. 2, 2022, is online and providing 55MW of energy and services to customers, with the remaining 45MW expected to be brought online during the second calendar quarter of 2022. We signed an energy services agreement with a utility to power this facility. The company pays for energy from part of the revenue from customers. Initially, these datacenters will primarily host servers securing the Bitcoin network but can also host hardware for other applications such as artificial intelligence, machine learning and other blockchain networks in the future. We have a colocation business model where our customers place hardware they own into our facilities, and we provide full operational and maintenance services for a fixed fee. We typically enter into long-term fixed-rate contracts with our customers.
Our mission includes building co-hosting facilities in which our customers will lease space and access to electricity to mine crypto assets. We are targeting bringing 800MW online by May 2023, 1.8GW by May 2024 and 5GW over the next five years.
We are building Next-Gen datacenters which are designed to provide massive computing power. Initially, these datacenters will primarily host servers securing the Bitcoin network but can also host hardware for other applications such as artificial intelligence, machine learning and other blockchain networks in the future. We have a colocation business model where our customers place hardware they own into our facilities, and we provide full operational and maintenance services for a fixed fee. We typically enter into long-term fixed-rate contracts with our customers.
We have purchased property in North Dakota on which we constructed our first co-hosting facility. We have also entered into an Amended and Restated Energy Services Agreement with respect to 100 megawatts to be used by our co-hosting customers. We have also entered into agreements with four customers (JointHash Holding Limited (a subsidiary of GMR), Bitmain Technologies Limited, F2Pool Mining, Inc. and Hashing LLC) which will account for the total available energy under the Amended and Restated Energy Services Agreement at our first facility and 85MW of energy at our second facility once built and able to provide such energy. The company pays for energy from part of the revenue from customers.
Industry: SERVICES-COMPUTER PROGRAMMING, DATA PROCESSING, ETC.
Employees: 47
Founded: 2001
Contact Information
Address 3811 Turtle Creek Blvd., Suite 2100, Dallas, TX 75219
Phone Number 214-427-1704
Web Address http://www.appliedblockchaininc.com/
View Prospectus: Applied Blockchain, Inc.
Financial Information
Market Cap $1750.92mil
Revenues $2.04 mil (last 12 months)
Net Income $-14.27 mil (last 12 months)
IPO Profile
Symbol APLD
Exchange NASDAQ
Shares (millions): 8.0
Price range $5.00 - $5.00
Est. $ Volume $40.0 mil
Manager / Joint Managers B. Riley/ Needham & Co./ Craig-Hallum/ D.A. Davidson & Co.
CO-Managers Lake Street/ Northland Capital Markets
Expected To Trade: 4/13/2022
Status: Priced
Quiet Period Expiration Date:
Lock-Up Period Expiration Date:
SCOOP Rating
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