Wes Cummins

Our business is a capital-intensive business.

So trying to do both of those just requires so much capital.

So this spin-out, it's its own separate company now, has its own capital stack, can raise its own capital to grow its business, and isn't applied digital, just constantly feeding all of this capital in.

So separate capital stack, big, big, big improvement for us and I think for our shareholders.

Two, a lot of the customers that we look to have or potential customers, so all of the ones that I mentioned,

some of those it's we've went through the process some of those have a sensitivity to us having a business that looks like their business right so they they're they have a cloud business right uh so aws uh microsoft has azure right they contract gpus and tpus and all of that but they also have that business so this keeps us from having that conflict

when we're trying to sign data center leases with them, sometimes that is viewed as a conflict.

Now that's gone.

So the conflict is gone.

The capital stack is there.

Applied Digital right now owns 97% of Chronoscale.

So our shareholders are going to benefit from the growth that I think is there.

And the reason we did spin it out is because I think there's a massive opportunity in that market and that business can grow in a huge way outside of Applied Digital and maybe be a data center customer for Applied Digital.

So there's a big, big opportunity, in my opinion, for the ChronoScale business.

Applied Digital shareholders get to participate in a big way because we own the majority of ChronoScale, but it lets it go and grow.

We've hired new management there.

I'm super excited about the talent that we're attracting.

We're gonna announce some more people that are joining ChronoScale.

We had a really good experience on attracting

really, really high quality executives to come to, uh, to, to that company.