DALLAS, JULY 18, 2022 (GLOBE NEWSWIRE) – Applied Blockchain, Inc. (Nasdaq: APLD) (“Applied Blockchain” or “The Company”) provided today updates on operations and financial guidance.
- Updated financial guidance for the fourth quarter of 2022 (ended May 31, 2022) with a mid-range revenue increase from $ 5.95 million to $ 7.20 million.
- The data center in Jamestown, North Dakota, is partially offline due to unexpected equipment failure at the substation that powers the plant; The power supplier is working hard to restore the service, which is expected in early September.
- Construction of the Applied Blockchains 200-Megawatt (“MW”) facility in Garden City, Texas continues with several buildings erected and electrical equipment delivered.
- The company is in the design and pre-construction phase of a third co-hosting data center in North Dakota; when operational, it is expected to bring Applied Blockchain’s total hosting capacity to 500MW.
“Since we reported our third quarter 2022 accounting results in mid-May, our operations have continued at or exceeded expectations, driving our financial results above the guidance we previously communicated,” said Applied Blockchain Chairman and CEO Wes Cummins. “Although we have a short-term setback in that parts of our capacity have been offline in Jamestown for several weeks, the company has never been in a better position. Our new 200MW hosting agreement with Marathon, announced separately today, not only reinforces the high level of demand for hosting, but the structure of the agreement allows us to accelerate the development without equity dilution.In addition, our third co-hosting data center is expected to give us a clear path to 500 MW online early next calendar year, which we estimate can generate $ 100 million in adjusted EBITDA on an annual basis. »
Guidance update for the fourth quarter of 2022
The company provided financial guidance for the fourth quarter of 2022 during its third quarter 2022 revenue conference, which included estimated revenues of between $ 5.7 million and $ 6.2 million and estimated adjusted EBITDA of between ($ 4.0) million and ($ 4.6) million .
Since providing this guidance, the performance of Applied Blockchain’s first Next-Gen co-hosted data center in Jamestown, North Dakota, has been positive and better than management’s assumptions supporting the original guidance. As a result, the company is updating its fourth quarter 2022 financial guidance for estimated revenue to a range of $ 7.0 to $ 7.4 million. As the company is still in the process of completing its financial statements for the fourth quarter, updated adjusted EBITDA guidance cannot be reasonably given at this time, but Adjusted EBITDA is expected to be a smaller loss than the original guidance given higher revenue.
Jamestown, North Dakota Co-Hosting Facility Update (100MW)
As previously reported, Applied Blockchain’s first 100MW Next-Gen co-hosting facility in Jamestown, North Dakota, began providing power at the end of January 2022, and had over 90MW online from June 2022. Recently, there was an unexpected equipment failure at the substation operating plant, resulting in a partial interruption of about 50%. The company has regular contact with the electricity supplier, who is working hard to rectify the equipment failure to restore full capacity, which is expected in early September. The Jamestown plant was not damaged and remains fully operational and able to host as much as 100 MW of capacity when sufficient power is available again.
Garden City, Texas Co-Hosting Facility Update (200MW)
Construction of Applied Blockchain’s second data center began in late April 2022, as previously revealed in the third quarter financial report issued on May 13, 2022. The facility, co-located with a wind farm, is in Garden City, Texas with a planned capacity of 200MW. The first buildings have been erected and most of the electrical equipment required is on site. The company plans to energize the Garden City facility late in the third quarter of 2022.
Third Co-Hosting Facility Update
The company has executed a letter of intent (LOI) with a tool and is in the late stages of design and pre-construction for a third co-hosting facility, which will be located in North Dakota. Breakthroughs are planned for the third quarter of 2022. A meaningful portion of the power capacity at this location has already been contracted by Marathon Digital Holdings, Inc. (Nasdaq: MARA), which is featured in a separate press release released today.
About Applied Blockchain
Applied Blockchain, Inc. (Nasdaq: APLD) is a builder and operator of next-generation data centers across North America, providing significant computing power to blockchain infrastructure and supporting Bitcoin mining. The company has partnered with some of the most reputable names in the industry to develop, distribute and scale the business. Find more information at www.appliedblockchaininc.com. Follow us on Twitter at @APLDBlockchain.
Future-oriented statements
This publication contains “forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995 regarding, among other things, future operating and financial performance, product development, market position, business strategy and goals. These statements use words and variations of words, such as “continue”, “build”, “future”, “increase”, “drive”, “believe”, “see”, “ahead”, “secure”, “deliver”, “outlook”, “expect” and “predict”. Other examples of forward-looking statements may include, but are not limited to, (i) statements about the company’s plans and objectives, including our evolving business model, or estimates or forecasts of actions by suppliers, (ii) statements about future financial performance, and (iii ) statements about assumptions that form the basis for other statements and statements about the company or its activities. You are warned against trusting these forward-looking statements. These statements are based on current expectations of future events and are therefore inherently subject to uncertainty. If the underlying assumptions turn out to be inaccurate or known or unknown risks or uncertainties materialize, actual results may deviate significantly from the company’s expectations and estimates. These risks, uncertainties and other factors include: decline in demand for our products and services; the volatility of the cryptocurrency industry; inability to follow developments and changes in regulation; cash flow and access to capital; and maintenance of third party relationships. The information in this release applies to the dates and time periods set forth herein, and the Company does not undertake to update any of the information in this material, except as required by law.
Investor Relations contacts
Jeff Grampp, CFA or Matt Glover
Gateway Group, Inc.
(949) 574-3860
[email protected]
Media contact
Catherine Adcock
Gateway Group, Inc.
(949) 574-3860
[email protected]
