Applied Digital Corporation
04/29/2024 | Press release | Distributed by Public on 04/29/2024 07:16
Material Event - Form 8-K
Item 8.01 Other Events.
Applied Digital Corporation (the "Company") continues to accelerate restoring capacity at its Ellendale data center hosting facility as additional North American-sourced transformers are brought on line. The Ellendale facility is currently operating at approximately 80 MW and the Company expects to continue to ramp capacity ahead of the schedule as reported in its earnings release filed on April 11, 2024. The company confirms that it expects the Ellendale facility to be operating at 65% to 75% of capacity by the end of its current fiscal year.
All equipment needed to bring the Ellendale facility to full operating capacity is on site and is in the process of being installed. The Company currently estimates the impact of this downtime on the Company's revenues will continue to be material until all the transformers not meeting industry standards are replaced. The reduced capacity has no impact on our HPC hosting data centers under construction, which are being designed to provide higher levels of availability in accordance with industry standards. The reduced capacity also has no impact on our Cloud services business, as those services are provided using third-party facilities.
This Current Report on Form 8-K contains "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995 regarding, among other things, future operating and financial performance, product development, market position, business strategy and objectives. These statements use words, and variations of words, such as "continue," "build," "future," "increase," "drive," "believe," "look," "ahead," "confident," "deliver," "outlook," "expect," and "predict." Other examples of forward-looking statements may include, but are not limited to, (i) statements of Company plans and objectives, including our evolving business model, or estimates or predictions of actions by suppliers, (ii) statements of future economic performance, and (iii) statements of assumptions underlying other statements and statements about the Company or its business. You are cautioned not to rely on these forward-looking statements. These statements are based on current expectations of future events and thus are inherently subject to uncertainty. If underlying assumptions prove inaccurate or known or unknown risks or uncertainties materialize, actual results could vary materially from the Company's expectations and projections. These risks, uncertainties, and other factors include: decline in demand for our products and services; the volatility of the crypto asset industry; the inability to comply with developments and changes in regulation; cash flow and access to capital; and maintenance of third party relationships. Information in this release is as of the dates and time periods indicated herein, and the Company does not undertake to update any of the information contained in these materials, except as required by law.