Posted by MarketBeat News on Apr 9th, 2022
Applied Blockchain, Inc. (APLD) expects to raise $59 million in an IPO on Wednesday, April 13th, IPO Scoop reports. The company will be issuing 3,200,000 shares at $16.54-$20.54 per share.
In the last twelve months, Applied Blockchain, Inc. generated $2 million in revenue and had a net loss of $14.3 million. The company has a market-cap of $1.8 billion.
B. Riley Securities, Needham & Co., Craig-Hallum and D.A. Davidson & Co. served as the underwriters for the IPO and Lake Street and Northland Capital Markets were co-managers.
Applied Blockchain, Inc. provided the following description of their company for its IPO: “(Note: This is NOT an IPO. This is a NASDAQ uplisting from the OTC Pink Markets. This is a firm commitment public offering of 3,236,245 shares of our common stock, par value $0.001 per share. We expect the initial public offering price to be between $16.54 and $20.54 per share with an $18.54 assumed IPO price (which is the midpoint of the $16.54 and $20.54 range; this assumption is used throughout this preliminary prospectus. Our common stock currently trades on the OTC Pink under the symbol “APLD.” 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. “.
Applied Blockchain, Inc. was founded in 2001 and has 47 employees. The company is located at 3811 Turtle Creek Blvd., Suite 2100, Dallas, TX 75219 and can be reached via phone at 214-427-1704 or on the web at http://www.appliedblockchaininc.com/.
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