Applied Digital to sell Garden City campus to Marathon Digital for $97.3M

Applied Digital Corporation (APLD) announced that it has entered into a definitive agreement to sell its 200 megawatt campus in Garden City, TX to Marathon Digital Holdings (MARA) for a net purchase price of approximately $87.3 million, with a gross purchase price of $97.3 million after adjustments contemplated in the purchase agreement. In addition to the purchase price, this transaction will release $12 million of restricted cash previously committed as collateral for the site’s letter of credit. The transaction is subject to customary closing conditions and is expected to close in the second quarter of calendar 2024. Completed in 2023, Applied Digital’s Garden City campus provides hosting agreements for blockchain mining clients, such as Marathon, under third-party arrangements. Applied Digital exclusively focuses on infrastructure and support services and does not currently own any equipment placed in the facility. Marathon has been a significant customer at the Garden City campus, operating under a multi-year colocation hosting agreement, and will remain a customer at our North Dakota blockchain hosting facilities.