Applied Digital Completes Separation of Cloud Business, Establishing ChronoScale as Independent Public Company

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Applied Digital contributed its cloud business to Ekso Bionics Holdings, Inc., receiving approximately 138 million shares of ChronoScale common stock. Additionally, Applied Digital invested $15.75 million in ChronoScale, acquiring an additional 1.4 million shares. Applied Digital retains approximately 97% ownership of ChronoScale. ChronoScale will focus on providing an accelerated compute platform for artificial intelligence workloads. The transaction reflects Applied Digital's strategy to separate its data center hosting platform from its cloud compute layer.

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About Applied Digital Corporation

Applied Digital Corporation specializes in digital infrastructure provision, focusing primarily on the management and operation of next-generation data centers. These facilities are optimized for high-performance computing applications, which are critical for areas such as artificial intelligence, machine learning, and blockchain technologies. As the demand for computational power grows across various industries, Applied Digital plays a pivotal role in facilitating the infrastructure that powers advanced technological developments. This company is notable for its energy-efficient solutions and scalable architecture, catering to sectors requiring substantial processing capabilities. Operating in the rapidly evolving landscape of tech infrastructure, Applied Digital is positioned to impact diverse fields, from finance and healthcare to scientific research and entertainment. By providing robust and flexible infrastructure, it enables organizations to expand their digital capabilities, highlighting its importance in the global push towards greater computational efficiency and innovation.