The company said that this investment positions it as a critical compute provider for Telegram’s Cocoon AI.
- The company said the transaction will be financed through a strategic capital structure comprising $30 million in equity capital from AlphaTON.
- A total of $70 million of high-value Nvidia hardware assets has been added to the company’s balance sheet.
- The company said that CUDO Compute, a European NVIDIA Cloud Partner, will serve as the primary deployment and operations partner for the GPU infrastructure.
AlphaTON Capital Corp. (ATON) said on Wednesday that it has entered into agreements to acquire and deploy a 1,000-plus Nvidia B200 Graphics Processing Unit (GPU) high-performance compute cluster valued at about $68 million.
The company said that this investment positions AlphaTON as a critical compute provider for Telegram’s Cocoon AI, a decentralized, privacy-preserving artificial intelligence network, while creating a diversified revenue stream through high-performance compute and GPU rental services.
However, shares of AlphaTON were down nearly 15% in early trading after the company on November 25 filed with the SEC a prospectus supplement for the offer and sale of up to $15.31 million of its shares.
Funding Details
The company said the transaction will be financed through a strategic capital structure comprising $30 million in equity capital from AlphaTON and $52.5 million in debt financing to be provided by Vertical Data’s GPU Financing division.
AlphaTON added that the total project capitalization was about $82.5 million, including additional working capital and deployment costs. A total of $70 million of high-value Nvidia hardware assets has been added to the company’s balance sheet.
The company noted that the debt facility, facilitated by Vertical Data, is to be fully amortized over 36 months.
Infrastructure Partners Of AlphaTON
AlphaTON has assembled a consortium of infrastructure partners to deploy and operate the GPU cluster. The company noted that CUDO Compute, a European NVIDIA Cloud Partner (NCP), will serve as the primary deployment and operations partner for the GPU infrastructure.
CUDO will lead cluster installation, orchestration, workload management, and lifecycle operations, while also providing the commercialization engine through its GPU marketplace and AI services platform.
AlphaTON added that SNET Energy UK would provide expertise in sustainable power data center development and AI infrastructure optimization.
Retail sentiment on AlphaTON remained unchanged in the ‘extremely bullish’ territory, with message volumes at ‘extremely high’ levels, according to data from Stocktwits.
Shares of AlphaTON have fallen by over 63% this year.
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