Applied Digital Completes Separation of Cloud Business, Launches ChronoScale

The transaction involved the contribution of Applied Digital's cloud business to what was previously known as EKSO Bionics Holdings, Inc., which has now rebranded as ChronoScale Corporation. Beginning today, shares of ChronoScale will trade on the Nasdaq Capital Market under the ticker symbol "CHRN." The transition symbolizes a new chapter for ChronoScale, aimed at catering to the demands of high-performance computing, particularly in the rapidly evolving artificial intelligence sector.

As part of the transaction, Applied Digital received approximately 138 million shares of ChronoScale common stock. Furthermore, the company committed $15.75 million in cash, resulting in an additional acquisition of roughly 1.4 million shares of ChronoScale at market value in a concurrent private placement. Following these transactions, Applied Digital holds approximately 97% of the outstanding shares of ChronoScale, ensuring a strong influence over its strategic direction.

ChronoScale will operate as an accelerated compute platform specifically designed to support demanding artificial intelligence workloads. The company aims to deliver scalable, GPU-based infrastructure optimized for AI training, inference, and high-performance computing tasks. With a focus on large-scale deployments, ChronoScale plans to provide dedicated compute environments that ensure performance, consistency, and long-term operational execution. This structure allows ChronoScale to scale its capacity in response to the surging demand for AI technologies.

Wes Cummins, Chairman and CEO of Applied Digital, commented on the strategic separation, emphasizing the distinct operational characteristics of both businesses. "Our data center hosting platform is built on long-duration contracts and predictable infrastructure returns, while the cloud compute layer operates on shorter cycles with a different risk profile. We believe separating these businesses allows each to be capitalized and scaled appropriately," Cummins stated.

He further elaborated on the potential for both entities, saying, "Applied Digital remains focused on delivering large-scale AI infrastructure with stable, long-term cash flows. At the same time, we believe ChronoScale is positioned to participate in the growth of the cloud compute layer, where we expect demand to continue to accelerate and capacity to remain constrained, which we expect to support strong utilization and favorable pricing dynamics."

The separation comes at a time when demand for AI infrastructure is experiencing unprecedented growth. Cloud compute platforms are facing increasing utilization rates and evolving workload requirements. This independent operational model is expected to provide ChronoScale with enhanced flexibility to access capital, expand its capacity, and pursue growth opportunities autonomously.

Legal advisory for the transaction was provided by Lowenstein Sandler LLP for Applied Digital and Wilson Sonsini Goodrich & Rosatti LLP for EKSO. Financial advisory services were rendered by Lake Street to EKSO.

As ChronoScale embarks on its journey as an independent entity, it stands poised to capitalize on the growing demand for AI-capable infrastructure. The strategic separation from Applied Digital allows both companies to focus on their core competencies, presenting new opportunities for investors and stakeholders in the rapidly evolving technology landscape.