Applied Blockchain, Inc. Launches Ethereum and Altcoin Mining Business via Strategic Partnership with Industry Leaders SparkPool and GMR

DALLAS, April 16, 2021 /PRNewswire/ — Applied Blockchain, Inc. (“Applied Blockchain” or the “Company”) (OTC: APLD), right this moment introduced it has entered the Ethereum and Altcoin mining market by means of strategic partnerships with trade main corporations SparkPool and General Mining Research (“GMR”). The Company efficiently accomplished an oversubscribed non-public funding  of $16.5 million in proceeds, earlier than charges and bills.

Business Highlights

  • Creates pure play publicly traded Ethereum mining firm
  • Strategic Partnership with SparkPool (the biggest Ethereum mining pool on the planet) and GMR will allow APLD to scale shortly with trade main effectivity
  • SparkPool and GMR every take a 9.9% fairness stake in APLD and have executed a three-year companies settlement with one yr auto renewals
  • Strong institutional backing with $16.5 million non-public placement
  • Expects preliminary mining capability to return on-line in May 2021
  • Goal is to scale mining shortly and then develop into Decentralized Finance (DeFi) and Non-fungible tokens (NFTs)
  • The Company plans to record on the Nasdaq Capital Market as quickly as potential

Strategic Partnership and Services Agreement

Applied Blockchain has entered right into a strategic partnership with SparkPool and General Mining Research (GMR) whereby each will every take a 9.9% possession stake in Applied Blockchain, Inc. The corporations have additionally signed a three-year companies settlement the place SparkPool and GMR will present all features required to scale a bigger Ethereum and Altcoin mining operation together with entry to {hardware}, internet hosting, {hardware} administration, mining optimization by means of proprietary software program and asset administration. All companies can be supplied to Applied Blockchain, Inc. at SparkPool and GMR’s prices, which is able to permit the corporate to leverage the massive scale and confirmed effectivity of our companions. Importantly, the settlement can even permit Applied Blockchain, Inc. precedence entry to mining {hardware} at favorable pricing.  The settlement consists of one yr auto renewals after the preliminary three-year time period.

“Ethereum represents one of the crucial engaging funding alternatives within the blockchain ecosystem with utilization of the community hitting an inflection level within the final twelve months and transaction volumes rising over 1,000% yr over yr,” stated Applied Blockchain, Inc.’s CEO and Chairman Wes Cummins. “Our strategic partnership with SparkPool, the biggest Ethereum mining pool on the planet, and GMR, a pacesetter in mining operations, asset deployment and administration, will permit us to shortly scale a big operation with trade main effectivity.  Our companions have efficiently deployed a whole lot of hundreds of thousands of {dollars} into cryptocurrency mining operations and their proprietary quantitative algorithms calculate essentially the most worthwhile mining methods in real-time and regulate mining hash energy accordingly. Importantly, our companions operations are established and effectively working with low-cost hydroelectricity that circumvents the facility technology challenges that many miners face right this moment whereas additionally operating essentially the most environment friendly mining software program guaranteeing 99%+ uptime and the very best mining rewards. Importantly, the multi-year companies agreements present us with scarce operational experience. Through these partnerships now we have strategically aligned our collective pursuits round a typical objective of deploying capital quickly to develop mining operations and seize a significant share of the Ethereum/Altcoin mining market.”

Mr. Cummins continued, “The success of our non-public placement is indicative of the curiosity and pleasure round Ethereum and the rising demand for distributed permissionless platforms with out centralized toll takers. The Ethereum community is on tempo to seize practically $4 billion in payment income in 2021. Through these partnerships we consider we may be an instantaneous and lively participant within the area and present engaging returns for our traders.”  

Key Details of the Private Placement

The firm has closed on a $16.5 million fairness funding lead by institutional and accredited traders. The firm bought 660,000 shares of convertible most popular inventory that convert into 132,000,000 shares of widespread inventory upon registration. This represents roughly 31.2% possession of The Company. The Company expects to make use of the proceeds from the providing to acquire GPU mining {hardware} and for basic company functions.

B. Riley Securities, Inc. served as sole placement agent for the financing.

Establishment of Board of Advisors

Upon closing of the financing, the principals of SparkPool and GMR will be a part of our new established Board of Advisors.  

Board of Advisors

Xin Xu is the co-founder and CEO of SparkPool. Xin graduated from Becknell University with a Computer Science diploma and was beforehand an early-stage investor within the TMT trade, and led the seed spherical funding of imToken, the world’s largest Ethereum cellular pockets. After becoming a member of the Ethereum neighborhood, Xin led EthFans to assist  the Ethereum Foundation rising the technical consciousness of Ethereum expertise in China. In late 2017, Xin co-founded SparkPool specializing in Ethereum mining service and led it to be the world’s largest Ethereum mining pool. He is taken into account as one of the crucial well-connected Ethereum infrastructure operators within the world neighborhood.

Guo Chen is the co-founder and CEO of General Mining Research (GMR). GMR is concentrated on mining Bitcoin, Ethereum, and a wide range of different altcoins. Guo is without doubt one of the earliest individuals within the institutionalization of the cryptocurrency trade. Before crypto, Guo labored at a technology-focused funding financial institution referred to as China Renaissance. Guo holds twin grasp’s diploma from Peking University and Hong Kong University.

Bo Dong is the co-founder of General Mining Research (GMR), a analysis pushed crypto mining agency. Bo can be a seasoned dealer and earlier crypto investor. Before becoming a member of crypto area in 2016, Bo was a cofounder of a fintech startup in China. Bo graduated from MIT with a grasp’s diploma in engineering.

Pre-recorded Management Discussion

Management will publish a pre-recorded message on Tuesday, April 20, 2021 at 9 a.m. Eastern Time to debate the corporate’s launch, enterprise plans and accomplished financing. To entry the recording, please dial: 

Within the United States:    

1-888-506-0062

International:      

1-973-528-0011

Please reference entry code:

592400

The message can be obtainable for replay till Friday, April 30, 2021 and may be accessed by dialing:

Within the United States:  

1-877-481-4010

International:  

1-919-882-2331

Please reference replay passcode:   

40831

The message can even be obtainable on-line at https://www.webcaster4.com/Webcast/Page/2686/40831.

About Applied Blockchain

Applied Blockchain Inc is an Ethereum targeted firm that’s looking for to shortly scale a big Etherium/Altcoin mining operation by means of strategic partnerships with two of the world’s largest and most skilled Ethereum corporations.
www.appliedblockchaininc.com   

About SparkPool

SparkPool is concentrated on skilled mining pool companies and the steady operation of public chain networks with the biggest Ethereum mining pool globally. The firm is devoted to optimizing expertise and companies, whereas offering protected and steady companies for hundreds of customers day-after-day. With a robust fame in neighborhood, steady mining pool companies and honest allocation of rewards, it’s a main pool globally.

About General Mining Research (GMR)

General Mining Research is a analysis pushed hash fee buying and selling firm with mining expertise in Ethereum and Bitcoin. The firm’s proprietary algorithm optimizes mining in real-time to maximise returns of deployed property.

Forward-Looking Statements

This launch comprises “forward-looking statements” as outlined within the Private Securities Litigation Reform Act of 1995 concerning, amongst different issues, future working and monetary efficiency, product growth, market place, enterprise technique and goals. These statements use phrases, and variations of phrases, equivalent to “proceed,” “construct,” “future,” “improve,” “drive,” “consider,” “look,” “forward,” “assured,” “ship,” “outlook,” “anticipate,” and “predict.” Other examples of forward-looking statements might embody, however aren’t restricted to, (i) statements of Company plans and goals, together with the introduction of recent merchandise, or estimates or predictions of actions by clients or suppliers, (ii) statements of future financial efficiency, and (III) statements of assumptions underlying different statements and statements concerning the Company or its enterprise. You are cautioned to not depend on these forward-looking statements. These statements are primarily based on present expectations of future occasions and thus are inherently topic to uncertainty. If underlying assumptions show inaccurate or recognized or unknown dangers or uncertainties materialize, precise outcomes might differ materially from the Company’s expectations and projections. These dangers, uncertainties, and different elements embody: value competitors; the choices of consumers or shoppers; the actions of rivals; modifications within the pricing of commodities; the results of presidency regulation; potential delays within the introduction of recent merchandise; and buyer acceptance of merchandise and companies. Information on this launch is as of the dates and time intervals indicated herein, and the Company doesn’t undertake to replace any of the data contained in these supplies, besides as required by regulation.

Investor Relations Contacts

Brett Maas • Managing Partner, Hayden IR
[email protected] • (646) 536-7331

Wes Cummins • Chief Executive Officer, Applied Blockchain
(214) 556-2465

SOURCE Applied Blockchain, Inc.

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