Applied Digital has sold a cryptomining data center campus in Garden City, Texas.
The company sold the facility to cryptominer Marathon Digital Holdings for $87.3 million, with a gross purchase price of $97.3 million after adjustments. The sale will also 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.
Applied does not mine crypto itself, but provides hosting agreements to miners. Marathon has been "a significant customer" at the 200MW Garden City campus, as well as at Applied's North Dakota facility.
While it plans to continue to develop data centers for crypto audiences, it plans to develop facilities targeting high-performance computing (HPC) and AI customers.
"This strategic transaction represents a purposeful pivot, equipping the Company to allocate financial and operational resources toward strategic sites in North Dakota, as well as bolstering our Balance Sheet strength," said Wes Cummins, CEO and chairman of Applied Digital.
"With a focused emphasis on the building of our HPC data centers, we reinforce our groundwork for enduring growth and operational excellence."
In February, the company obtained a $20 million unsecured loan to fund its HPC build-out. Later that month, it warned investors that a lengthy outage at its data center in Ellendale, North Dakota, would impact company revenues.
