Applied Blockchain, Inc. announced it is entering the crypto hosting business, following the closing of a $32.5 million private placement on July 30, 2021. The private placement was led by Bitmain, a producer of products for blockchain and artificial intelligence (AI) applications. The proceeds will fund the acquisition of land, construction of facilities, component procurement and other project costs related to the Company's hosting business in North America. Once constructed, the hosting facilities will house up to 500 megawatts of power and will enable the Company to generate a stable cash flow stream through long-term hosting agreements and lower the cost of power for the Company's own mining operations. Bitmain joins SparkPool and GMR as strategic partners for the Company, assisting in the operation and development of its mining and hosting businesses as well as the identification of other strategic business initiatives. In addition to the strategic and equity partnerships, the Company has secured long term hosting agreements with Bitmain and GMR.