Applied Blockchain, which is building data centers leased to crypto miners, lowered the proposed range for its upcoming IPO on Tuesday. The company is currently listed on the OTC (APLD).
The Dallas, TX-based company now plans to raise $60 million by offering 8.6 million shares at a price range of $6 to $8. The company had previously filed to offer 3.2 million shares at a range of $16.54 to $20.54. At the midpoint of the revised range, Applied Blockchain would raise the same amount in proceeds and command a market value of $698 million (-60% from original terms).
Applied Blockchain is actively mining cryptoassets and developing hosting services offered to other crypto miners. Its initial mission was to quickly scale a large mining operation focused on mining Bitcoin and Ethereum. As a result of changes to Chinese regulations of crypto mining, the company decided to locate its mining hardware in North America and also began to explore other co-hosting locations. By July 2021, Applied Blockchain entered into a co-hosting agreement with Coinmint, had its initial order of mining equipment delivered and installed at Coinmint's co-hosting facility, and began its mining operations. The company's first facility was constructed in North Dakota and as of February 2, 2022 is online and providing 55MW of energy and services to customers, with the remaining 45MW expected to be brought online during the 2Q22.
Applied Blockchain was founded in 2001 and booked $2 million in revenue for the 12 months ended November 30, 2021. It plans to list on the Nasdaq under the symbol APLD. B. Riley Securities and Needham & Co. are the joint bookrunners on the deal. It is expected to price during the week of April 11, 2022
