Applied Digital Launches Independent Fund to Acquire Distressed Cryptocurrency Assets
DALLAS, Nov. 21, 2022 (GLOBE NEWSWIRE) -- Applied Digital Corporation (Nasdaq: APLD) ("Applied Digital" or the "Company"), a designer, builder and operator of next-generation digital infrastructure that is designed for High Performance Computing (“HPC”) applications, has launched an independent fund aimed at acquiring distressed cryptocurrency assets, which may include mining hardware and digital infrastructure assets. The fund and any acquired assets will be managed by a newly formed entity, Highland Digital, which is a 50/50 joint venture between Applied Digital and GMR Limited (“GMR”). The independent fund is targeting raising capital of up to $100 million from outside investors. Applied Digital does not anticipate issuing any equity to raise capital for the fund, nor does it plan on directly owning any mining hardware.
The new fund combines Applied Digital’s best-in-class digital infrastructure assets and GMR’s in-depth experience of managing mining hardware through cryptocurrency market cycles to take advantage of the current distressed environment. GMR is a current customer of Applied Digital.
“Additionally, this fund structure allows the Company’s shareholders to participate in the value creation potential of Highland Digital without any capital required from Applied Digital given the external funding plans. However, any successful acquisitions by Highland Digital may provid opportunities for Applied Digital to grow its hosting customer base. We have a strong balance sheet coupled with a high-quality asset base and will keep a disciplined filter on the opportunities assessed by Highland Digital to ensure they maintain these tenants while increasing the value of our company to generate even greater shareholder value.”
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