The transaction was pre-announced, so the closing is largely expected. Monitor ChronoScale's initial trading and public filings for revenue and utilization metrics, which will indicate the cloud business's standalone performance. Applied Digital retains controlling stake, so any future dilution or capital raises at ChronoScale could impact APLD's ownership value.
Price Chart
Executive Summary
Applied Digital completed the spin-off of its cloud business into a new public company, ChronoScale (CHRN), retaining ~97% ownership and investing $15.75M. The transaction separates Applied Digital's core data center hosting from the cloud compute layer, allowing each to pursue independent growth strategies.
Key Financial Metrics
Key Facts
- Applied Digital contributed its cloud business to Ekso Bionics, which renamed to ChronoScale Corporation, effective May 5, 2026.
- Applied Digital received ~138 million shares of ChronoScale, representing approximately 97% ownership.
- Applied Digital also invested $15.75 million in cash via a private placement at $12.01 per share for ~1.4 million additional shares.
- ChronoScale began trading on Nasdaq under ticker CHRN on May 5, 2026.
- Applied Digital entered into an Investor Rights Agreement granting significant governance and registration rights.
- Applied Digital will provide management and corporate services to ChronoScale under a fee arrangement (1% of gross revenue management fee).
Financial Impact
Applied Digital invested $15.75 million in cash and contributed its cloud business for ~97% ownership of ChronoScale; management fee of 1% of ChronoScale's gross revenue.
Risk Factors
- Integration of cloud business with legacy Ekso operations may face execution challenges.
- ChronoScale's ability to scale capacity and secure customers independently is unproven.
- Potential for future dilution if ChronoScale raises additional capital.
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 5 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001493152-26-021333 |
| Exhibit: ex10-2.htm | 0001493152-26-021333 |
| Exhibit: ex10-3.htm | 0001493152-26-021333 |
| Exhibit: ex99-1.htm | 0001493152-26-021333 |
| Document: form8-k.htm | 0001493152-26-021333 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Jul 27, 2026 9w ago | 8-K | $26.62 $28.85 | ▲ +8.38% | ▲ +5.00% | $25.21 (−5.30%) |
Jun 26, 2026 13w ago | 8-K | $37.77 $27.19 | ▼ −28.01% | ▼ −27.73% | $25.21 (−33.25%) |
Jun 16, 2026 15w ago | 8-K | $45.57 $26.44 | ▼ −41.98% | ▼ −43.30% | $25.21 (−44.68%) |
Jun 12, 2026 16w ago | Institutional Cluster | $42.70 $31.15 | ▼ −27.05% | ▼ −28.83% | $25.21 (−40.96%) |
Jun 11, 2026 16w ago | Institutional Cluster | $41.47 $32.29 | ▼ −22.14% | ▼ −24.03% | $25.21 (−39.21%) |
Jun 9, 2026 16w ago | 8-K | $41.91 $30.71 | ▼ −26.72% | ▼ −28.17% | $25.21 (−39.85%) |
May 5, 2026 21w ago | 8-K | $44.24 $44.71 | ▲ +1.06% | ▼ −1.72% | $25.21 (−43.02%) |
Apr 27, 2026 22w ago | Insider Cluster | $33.67 $45.14 | ▲ +34.07% | ▲ +29.11% | $25.21 (−25.13%) |
Apr 23, 2026 23w ago | 8-K | $36.35 $39.52 | ▲ +8.72% | ▲ +4.09% | $25.21 (−30.65%) |
Apr 23, 2026 23w ago | Press Release | $36.35 $39.52 | ▲ +8.72% | ▲ +4.09% | $25.21 (−30.65%) |
US Market Status
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