Applied Digital Announces Agreement to Sell Garden City Campus to Marathon Digital Holdings

Core Insights - Applied Digital Corporation has entered into a definitive agreement to sell its 200 MW campus in Garden City, TX to Marathon Digital Holdings for a net purchase price of approximately $87.3 million, with a gross purchase price of $97.3 million after adjustments [1][2] - The transaction will release $12 million of restricted cash previously committed as collateral for the site's letter of credit, and is expected to close in the second quarter of calendar 2024 [1][2] - This divestiture reflects the company's strategy to focus on strategic high-performance computing (HPC) sites in North Dakota, redirecting resources and strengthening its balance sheet [1][2] Company Strategy - The sale allows Applied Digital to allocate financial and operational resources toward its strategic sites in North Dakota, reinforcing its commitment to building HPC data centers [2] - The company emphasizes its focus on infrastructure and support services, without owning any equipment at the Garden City facility, which has been primarily used for blockchain mining clients [2] Customer Relationship - Marathon Digital has been a significant customer at the Garden City campus, operating under a multi-year colocation hosting agreement, and will continue to be a customer at Applied Digital's North Dakota blockchain hosting facilities [2][3] - Both companies express confidence that this transaction will enable them to advance their long-term strategies effectively [3]