Applied Digital Completes AI Cloud Spinout Into New Nasdaq Firm ChronoScale
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Key Takeaways
- Applied Digital retains approximately 97% ownership of ChronoScale and invested $15.75 million in cash at closing.
- ChronoScale will focus on GPU-based infrastructure for AI workloads, separating the cloud compute layer from Applied Digital’s data center hosting business.
Applied Digital has completed the spinout of its cloud services business into a separately traded company, marking the latest move by a bitcoin mining-era infrastructure operator to reshape itself around the booming AI compute market.
The company said Tuesday that its previously announced transaction with EKSO Bionics Holdings has closed, resulting in the creation of a new Nasdaq-listed entity called ChronoScale Corporation, which began trading under the ticker CHRN on May 5.
As part of the transaction, Applied Digital contributed its cloud business into EKSO in exchange for about 138 million shares of ChronoScale stock, while also investing an additional $15.75 million in cash through a concurrent private placement. Following the deal, Applied Digital owns roughly 97% of ChronoScale’s outstanding shares.
The transaction effectively separates Applied Digital’s business into two distinct layers of the AI infrastructure stack: the long-term data center leasing and hosting business on one side, and the shorter-duration GPU cloud computing business on the other.
