Applied Digital Corporation
07/02/2024 | Press release | Distributed by Public on 07/02/2024 06:11
Material Event Form 8 K
Item 8.01. Other Events
Operational Update
As previously disclosed, on January 18, 2024, Applied Digital Corporation (the "Company") began experiencing a power outage at our Ellendale datacenter hosting facility (the "Ellendale Facility"), resulting in a complete outage by January 19, 2024. These outages were due to transformers not meeting industry standards. The Company had successfully procured new transformers and related components from North American industry-leading manufacturers and began re-energizing. As of June 28, 2024, the upgrades to the Ellendale Facility's equipment were completed, and the Ellendale Facility has been restored to full operating capacity at 180 MW. The reduced capacity had no impact on our HPC hosting data centers, which are designed to provide higher levels of availability in accordance with industry standards, or 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.