DALLAS – Applied Digital Corporation (NASDAQ:APLD), a company specializing in the design and operation of digital infrastructure for High-Performance Computing (HPC), has announced the sale of its 200 megawatt campus in Garden City, TX, to Marathon Digital Holdings (NASDAQ:MARA).
The deal, valued at a net purchase price of approximately $87.3 million and a gross purchase price of $97.3 million after adjustments, also includes the release of $12 million in restricted cash previously tied up as collateral.
The transaction, subject to standard closing conditions, is slated for completion in the second quarter of 2024. This strategic move allows Applied Digital to concentrate its resources and efforts on its strategic HPC sites in North Dakota and to strengthen its balance sheet.
The Garden City campus, completed in 2023, has served blockchain mining clients through hosting agreements, with Marathon being one of the significant customers under a multi-year colocation hosting agreement. Despite the sale, Marathon will continue to be a customer of Applied Digital's North Dakota facilities.
Wes Cummins (NYSE:CMI), CEO and Chairman of Applied Digital, emphasized that the divestiture is part of a strategic pivot to enhance the company's financial and operational focus on key locations and to lay a foundation for sustained growth and operational excellence.
Fred Thiel, Marathon’s Chairman and CEO, acknowledged the value of the partnership with Applied Digital and expressed confidence in the transaction's contribution to both companies' long-term strategies.
Applied Digital operates next-generation data centers across North America, targeting the growing HPC industry. Marathon Digital Holdings is engaged in the digital asset technology space, working towards becoming one of the largest and most sustainably powered Bitcoin mining operations in North America.
The information for this article is based on a press release statement.
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