---
schema_version: "secwatch.filing_event.v1"
accession: "0001144879-24-000063"
form_type: "8-K"
ticker: "APLD"
cik: "0001144879"
company_name: "Applied Digital Corp."
filed_at: "2024-04-05T23:59:59+00:00"
generated_at: "2026-06-04T01:40:47.613146+00:00"
event_type: "m_and_a"
sentiment: "neutral"
materiality_score: 0.75
calibrated_materiality_score: 0.75
confidence: "high"
source: SEC EDGAR
---

# Applied Digital closes $87.3M sale of Garden City data center to Marathon Digital; pro forma shows $24.8M loss on sale

## Summary
- Sale of Texas data center facility to Mara Garden City (Marathon subsidiary) completed April 1, 2024 for $87.3M plus $10.0M from security deposit surrender.
- Purchase price may be reduced by up to $34M if full additional megawatt energization not conditionally approved within 120 days.
- Pro forma balance sheet at Nov 30, 2023 shows cash increase to $36.5M from $9.2M; total assets decline to $417.8M from $480.7M.
- Pro forma net loss for FY2023 increased to $68.9M from $45.6M, including $27.7M loss on disposal of assets and debt extinguishment.
- Company used proceeds to repay debt secured by facility ($10.7M) and buy out finance lease liabilities not assumed by Marathon.

## SEC filing metadata
- accession: 0001144879-24-000063
- form_type: 8-K
- ticker: APLD
- cik: 0001144879
- company_name: Applied Digital Corp.
- filed_at: 2024-04-05T23:59:59+00:00
- event_type: m_and_a
- sentiment: neutral
- materiality_score: 0.75
- calibrated_materiality_score: 0.75
- confidence: high
- sec_items: 2.01, 9.01
- EDGAR index: https://www.sec.gov/Archives/edgar/data/1144879/000114487924000063/0001144879-24-000063-index.htm
- EDGAR primary document: https://www.sec.gov/Archives/edgar/data/1144879/000114487924000063/apld-20240401.htm

## Machine-readable alternates
- HTML: https://secwatch.observer/filing/0001144879-24-000063
- JSON: https://secwatch.observer/filing/0001144879-24-000063.json
- Plain text: https://secwatch.observer/filing/0001144879-24-000063.txt

## Key facts
- M&A Transactions
  Applied Digital Corp. completed a disposition involving Mara Garden City LLC (subsidiary of Marathon Digital Holdings, Inc.) for $87,328,675 (closed 2024-04-01).
  - Action: disposition
  - Counterparty: Mara Garden City LLC (subsidiary of Marathon Digital Holdings, Inc.)
  - Consideration: $87,328,675
  - Closing: 2024-04-01
  source text: On April 1, 2024, the Transaction was consummated pursuant to the terms of the Purchase and Sale Agreement (the “Closing”). The purchase price payable by Mara Garden City to Rattlesnake Den I under the terms of the Purchase and Sale Agreement is $87,328,675 (the “Purchase Price”), plus additional consideration of $9,971,235 received by the Company at Closing in connection with the surrender of Marathon’s security deposits under its existing agreements with the Company.
  evidence_url: https://www.sec.gov/Archives/edgar/data/1144879/000114487924000063/0001144879-24-000063-index.htm

This AI-assisted summary is a reading aid. Review the linked SEC EDGAR filing before relying on any specific claim.