Applied Blockchain Provides Operational and Guidance Updates

DALLAS, July 18, 2022 (GLOBE NEWSWIRE) -- Applied Blockchain, Inc. (Nasdaq: APLD) ("Applied Blockchain" or the "Company") today provided updates on its operations and financial guidance.

• Updated fiscal fourth quarter 2022 (ended May 31, 2022) financial guidance with revenue increasing at the midpoint from $5.95 million to $7.20 million.
• Datacenter in Jamestown, North Dakota is partially offline due to unexpected equipment failure at the substation powering the facility; the power provider is working diligently to restore service, which is expected by early September.
• Construction of Applied Blockchain’s 200-Megawatt (“MW”) facility in Garden City, Texas is progressing with several buildings erected and electrical equipment delivered.
• The Company is in the design and pre-construction phase of a third co-hosting datacenter in North Dakota; once operational, it is expected to bring Applied Blockchain’s total hosting capacity to 500MW.

“Since we reported our fiscal third quarter 2022 results in mid-May, our operations have continued at or better than expectations, driving our financial performance above the guidance we previously communicated,” said Applied Blockchain Chairman and CEO Wes Cummins. “While we have a short-term setback with part of our capacity being 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 our buildout without equity dilution. Additionally, our third co-hosting datacenter is expected to give us a clear path to 500 MWs online early next calendar year, which we estimate can generate $100 million of Adjusted EBITDA on an annual basis.” 

Fiscal Fourth Quarter 2022 Guidance Update
The Company provided fiscal fourth quarter 2022 financial guidance during its fiscal third quarter 2022 earnings conference call, which included projected revenue of between $5.7 million and $6.2 million and projected Adjusted EBITDA of between ($4.0) million and ($4.6) million.

Since providing this guidance, performance from Applied Blockchain’s first Next-Gen co-hosted datacenter in Jamestown, North Dakota has been positive and better than management’s assumptions supporting the original guidance. Accordingly, the Company is updating its fiscal fourth quarter 2022 financial guidance for projected revenue to a range of $7.0 to $7.4 million. Since the Company is still finalizing its fiscal fourth quarter financials, updated Adjusted EBITDA guidance cannot be reasonably provided at this time, however, Adjusted EBITDA is expected to be a narrower loss than original guidance given the higher revenue.