Applied Blockchain, which is building data centers leased to crypto miners, raised $40 million by offering 8.0 million shares at $5, below the downwardly revised range of $6 to $8. The company raised $20 million less in proceeds and sold 0.6 million fewer shares than indicated in its revised terms filed on Tuesday. Before that, it originally filed to raise $60 million by offering 3.2 million shares at a range of $16.54 to $20.54. At pricing, Applied Blockchain commands a fully diluted market value of $505 million.
Applied Blockchain had previously traded on the OTC Pink as Applied Science Products, and closed Tuesday at $10.20, converted for a 1-for-6 reverse stock split.
Applied Blockchain is developing hosting services offered to other crypto miners. 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 another 45MW expected to be brought online during the 2Q22. It is targeting 800MW online by May 2023. During the three months ended November 30, 2021, it booked $1.4 million in revenue.
Applied Blockchain plans to list on the Nasdaq under the symbol APLD. B. Riley Securities and Needham & Co. acted as joint bookrunners on the deal.
