Applied Digital spins off cloud unit to form ChronoScale as Ekso Bionics stock surges 54%

Why Is Ekso Bionics Stock Soaring Tuesday? - Applied Digital (NASDAQ:APLD), Ekso Bionics Holdings (NASDAQ:EKSO)

Ekso Bionics Holdings, Inc. (NASDAQ:EKSO) stock rose Tuesday after the company disclosed a non-binding term sheet with Applied Digital Corporation (NASDAQ:APLD) for a proposed business combination on Monday. As per the deal, Applied Digital will merge its cloud computing unit with Ekso to form ChronoScale Corporation, an accelerated compute platform designed for AI workloads. With enterprise and AI demand for GPU-accelerated cloud infrastructure growing rapidly, the transaction aims to establish a dedicated platform to deliver high-performance compute at scale in a capacity-constrained market. Business Separation Rationale The Proposed Transaction separates the accelerated compute platform from Applied Digital's data center ownership and development business, enabling each to scale independently, pursue distinct growth strategies, and gain greater strategic and capital flexibility. ChronoScale is being built for customers seeking predictable performance, infrastructure control, and rapid deployment without the limitations of generic cloud services. The platform is expected to leverage Applied Digital Cloud's established operations to quickly deploy and scale GPU-based compute infrastructure optimized for advanced AI training and inference workloads. Ownership And Operations Post closure, Applied Digital would hold around 97% of ChronoScale. Both Applied Digital Cloud and Ekso businesses will continue operations, while Ekso intends to explore strategic options for a potential sale of all or substantially all of its existing business. ChronoScale is expected to leverage Applied Digital's growing portfolio of AI factory campuses, gaining faster access to infrastructure, accelerating deployment, and reducing execution risks as GPU demand rises. Applied Digital Cloud was among the first platforms to deploy NVIDIA's H100 GPUs at scale in 2023, demonstrating its ability to source, integrate, and operate next-generation GPU infrastructure ahead of broader market adoption. The business generated approximately $75.2 million in twelve-month revenue as of August 31, 2025, reflecting strong and growing demand from enterprise and AI-native customers for dedicated, accelerated compute delivered through cloud-based platforms. Deal Timeline The Proposed Transaction is anticipated to close in the first half of 2026, pending regulatory and shareholder approvals, and satisfaction of closing conditions. Price Action: Ekso Bionics Holdings shares were up 54.03% at $8.41 during premarket trading on Tuesday, according to Benzinga Pro data. Applied Digital shares were up 1.81%. Read Next: Ex-Bitcoin Miners Turn Power Providers In 'Sputnik-Like' Race For AI Supremacy Photo by PJ McDonnell via Shutterstock APLDApplied Digital Corp$25.261.81%OverviewEKSOEkso Bionics Holdings Inc$8.5556.6%Market News and Data brought to you by Benzinga APIs

Applied Digital stock rises after announcing cloud business spinoff By Investing.com

Investing.com -- Applied Digital (NASDAQ:APLD) stock rose 1.2% in after-hours trading Monday following the announcement of a proposed business combination that would spin off its cloud computing business. The company plans to combine Applied Digital Cloud with EKSO Bionics Holdings (NASDAQ:EKSO) to create a new entity called ChronoScale Corporation, which will focus on providing accelerated compute infrastructure for artificial intelligence workloads. Upon completion of the transaction, Applied Digital would own approximately 97% of the combined company. The spinoff aims to create a focused platform that can deliver high-performance computing at scale in what the company describes as a "capacity-constrained market." By separating the accelerated compute platform from Applied Digital's data center business, each entity will be able to scale independently and pursue distinct growth strategies. Applied Digital Cloud has already demonstrated its capabilities in the AI infrastructure space, having been among the first platforms to deploy NVIDIA's H100 GPUs at scale in 2023. The business generated approximately $75.2 million in revenue for the twelve months ending August 31, 2025. "ChronoScale is intended to bring together a proven operating platform and a clear mandate: deliver accelerated compute at scale for the most demanding AI workloads," said Wes Cummins, Chairman and CEO of Applied Digital. Meanwhile, EKSO plans to continue exploring strategic transactions for the possible sale of its current business following the combination. The proposed transaction is expected to close in the first half of 2026, subject to due diligence, final agreements, and regulatory and shareholder approvals. This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.