Applied Blockchain, Inc. announced entry into the crypto hosting business after closing a private placement of $ 32.5 million on July 30, 2021. The private placement was led by Bitmain, a manufacturer of products for blockchain and artificial intelligence (AI) applications. The proceeds will fund the purchase of land, facility construction, component procurement, and other project costs related to the company’s hosting business in North America. Once built, the hosting facilities will accommodate up to 500 megawatts of power and enable the company to generate stable cash flow through long-term hosting contracts and reduce electricity costs for the company’s own mining operations. Bitmain joins SparkPool and GMR as the company’s strategic partner, helping to operate and develop its mining and hosting businesses, as well as identifying other strategic business initiatives. In addition to the strategic and equity partnerships, the company has long-term hosting agreements with Bitmain and GMR.