Project Report: Applied Blockchain Inc

Company Overview:

The primary mission of Applied Blockchain Inc. is to develop patented technology for a broad

range of applications, for instance, tailored plasma gas chemistry. In May 2001, this company

was founded in Dallas, Texas. In addition to building and operating next generation

datacenters across North America, this company also provides substaintial computer power to

cryptocurrency blockchains and supports bitcoin mining. Moreover, this company seeks to

maximize shareholder value by implementing exceptional business practices, ensuring strong

governance, maintaining consistent reporting, and engaging and communicationg effectively.

In addition to providing timely reporting and relavent presentations, the company also

provides investors with important financial data and filings. With underwriters Riley

Securities and Needham & Co., this company plans to sell up to 3,236,245 shares at an

estimated price range of 16.54 dollars to 20.54 dollars a share in its IPO. This company

primarily plans to trade on the Nasdaq under the proposed name "APLD." In order to secure

the bitcoin BTCUSD, +0.12 percent network, this company is building data centers. As well

as AI, machine learning and other blockchain networks, the company plans to host hardware

for other applications. In 2021, Wes Cummins will take over as CEO of the company, having

sold 272 Capital LP to B. Riley Financial Inc. RILY, -4.81 percent previously.

Role of Investment Banks:

Investing in the financial markets is a complex process, so investment banks act as

intermediaries. Investors are usually involved in corporate mergers and initial public offerings

(IPOs) of start-up companies. As a broker or advisor to large institutions, it plays a key role in

the market. Most investment banks provide access to financial markets on behalf of

corporations. Corporations rely on them for their IPOs or additional stock offerings.
Additionally, they source large-scale investors to purchase corporate bonds and lend to

corporations. Advisory services provided by investment banks begin with pre-underwriting

advice and continue after securities are distributed. Before securities can be purchased,

investors receive a prospectus in which the offer is described in detail and a company's

financial statements are inspected for accuracy. 

The potential investors should invest their money in the Applied Blockchain company due to

some special reasons. Healthcare is one of many industries that could benefit from blockchain

technology. The United States ranks third in the number of deaths caused by medical errors,

many of which are linked to poor communication between providers. In a world where

healthcare is fragmented, privacy regulations are strict, and data breaches are costly,

blockchain is a promising solution to disrupt the healthcare industry. By creating secure

blocks of data that are only available to authorized individuals, blockchain eliminates the risk

of data theft associated with traditional data-sharing methods. Patient records can be added to

the health history of those they choose and share with their health care providers.

Supply chains across the globe are becoming more complex and opaque, which is one of the

biggest challenges manufacturers face today. There are dozens of parts in one iPhone made in

different parts of the world. An accelerometer made by Bosch in Taiwan, an audio chip

produced in Singapore, and a battery made in China could all be included. Due to this, it's

extremely difficult for companies to know exactly where their products come from, making

unethical and illegal practices possible. In addition, the changing technology has made it

difficult for companies to keep track of products and locate those that go missing. Companies

such as Walmart, Nestlé, and Tyson are already implementing blockchain to address these

issues. The blockchain, on the other hand, gives you complete access to supplier records,

government data, insurer information, and prior verifications made by trusted parties, all in

one place. Blockchain facilitates tracking, agreements, and secure payment because it is
essentially a decentralized digital ledger. Because the chain of ownership can be viewed on a

single ledger by every supplier and producer, Blockchain eliminates supply chain disputes.

Media buying can also be done using blockchain, which was originally developed to fight

fraud in banking. Approximately $42 billion will be lost to fraud this year, according to

Juniper Research. Using blockchain technology to manage marketing spend in a fraud-free

manner can lower this click fraud. Advertising agencies are able to track their investments

over time thanks to the blockchain's open and distributed ledger. Until both parties have

agreed to use the technology, advertisers won't be able to take advantage of this perk.

Accounting practices can also be automated through blockchain in areas other than

advertising. Financial auditors are able to focus more on anomalies with the help of

technology. The blockchain allows all transactions to be visible to authorized users, which can

lead to a reduction in auditors' time spent sampling and verifying transactions.

Challenges and Risks:

For blockchains to be effective, they must be widely adopted. The number of organizations

coming together to form collaborative blockchain working groups is on the rise, so they can

gain insight into common problems while developing solutions that benefit everyone without

disclosing proprietary information. There are few skills to develop and use blockchain, which

is why it is still very much an emerging technology. In addition, blockchain users lack

confidence in the technology. There are two challenges in this regard: Organizations have

concerns about technology security, and they may have concerns about trusting other parties

with a blockchain. All transactions in blockchains are considered safe, private, and trusted. As

a result, the transactions are validated and verified in spite of the absence of a central

authority. In addition, blockchain adoption is restricted by financial constraints. Many

organizations have been severely impacted by the pandemic and disruption of 2020, and

blockchain implementation is not free. Despite this, another lesson that organizations and IT
departments have learned from the pandemic is that they can change more quickly than

previously predicted. 

Investment banks operations:

The investment banks have the capability of providing strategic advice on diverse financial

issues as their clients include large institutional investors. Their unique approach combines a

comprehensive understanding of their clients' objectives, industries, and global markets with

the strategic vision necessary to recognize and evaluate opportunities and challenges in both

the short-term and long-term. The role of an investment bank is to facilitate mergers and

acquisitions. Investment banks help negotiate fair prices for acquisitions and estimate their

value. Furthermore, it facilitates the acquisition process so that the deal runs smoothly.  

Research:

In addition to offering investment advice to clients, the research department of an investment

bank also facilitates trades through the trading desk of the bank, thus generating revenue for

the bank. Among the research functions of investment banks are credit research, fixed income

research, macroeconomic research, and quantitative analysis, all of which are useful for

advising clients both internally and externally. An investment bank's global network enables it

to connect buyers and sellers around the world, where size matters. The R&D department of

investment banks also provide information about the new trends, progress, challenges, and

possible solutions. The clients will investment on a large scale if they find more prospects and

huge returns.

Giving advice:

Capital market securities are not issued very frequently by most firms. Profits retained from

past periods are used to finance over 80% of corporate expansion. Due to this, most firms do
not have a clear idea of how to deal with a new security offering. Investing bankers provide

valuable insight into this market, since they participate in it every day. An organization might

not know whether it should raise capital through stock sales or bond sales. In this case,

investment bankers may be able to assist by pointing out, for example, that stocks in the firm's

industry are currently fetching high prices (historically high PE ratios), and that bonds are

currently trading at relatively low prices due to relatively high interest rates. Securities

offerings may also require advice for firms. Firms want to time the market to sell stock when

it is going to obtain the highest price, so it may be best to wait before trying to sell when

competitors have recently released earnings reports showing poor profits. The interaction that

investment bankers have every day with the securities markets should allow them to advise

firms on when to launch their offerings. Investment bankers often have to give clients advice

about what price to sell securities at. Despite their different motives, the investment banker

and the issuance firm share some similarities. An investment bank that prices an issue too

high will have difficulty reselling it, and will incur a loss. A firm's prior issues, called

seasoned issues, that are currently selling in the market make pricing securities not too

difficult. IPOs of a company are much more challenging to determine than when a company is

issuing stock for the first time. The investment banker may assist the issuing firm with the

next step, which is filing all the required documents if they can agree on the price.  

Equity sales:

Investors banks are also able to help sell companies. When selling equity in a business, the

first step is determining its value for the seller. The investment banker will use sophisticated

models to establish the value of the company by providing a detailed analysis of the current

market for other companies. Company value is determined by the purpose for which it is used

by the buyer. In the event of only physical assets being sold, the value of the firm will be one.

In that case, the price will be much higher if the buyer sees this as a chance to take advantage
of synergies with another firm. Although the yardstick can be ephemeral, investment bankers

have developed a number of tools to provide owners of businesses with a range of valuations.

A great deal depends on who will be bidding for the firm as to how much cash flows will need

to be discounted. Investing bankers are invaluable in this regard. Inquire discreetly to feel out

who might be interested in the marketplace. An agreement must be signed by prospective

buyers stating that they will not use the information for competitive purposes or disclose it to

third parties. In order to protect the confidentiality of information, the investment bank will

screen prospective clients. A prospective buyer will then issue a letter of intent in order to

proceed with the equity sale. It outlines the conditions of a potential purchase and signals a

desire to move forward.

Audiance:

Going public is not a simple and easy task that a company can accomplish it in a day or a

month. However, it requires long-term planning and a longer period of time, e.g., one year or

more years. This pre-IPO planning is very essential to effectively prepare for the sale of

shares and to demonstrate the underwriters that the company is ready to be a public company.

The better prepared a company are from the beginning of the IPO process, the more quickly

the company can respond to bright opportunities that arise in the capital market. Hence, the

preparation for the IPO can build investor and underwriter confidence, which can increase the

likelihood of a smooth IPO process.

Capital Structure:

Some companies or organizations are planning to go public must make significant changes to

their organizational or capital structure. Even so, if the company or an organization was

previously managed as a single entity in the marketplace, a revision of the capital structure

might be highly necessary. By redeeming or converting dilutive securities such as stock

warrants and preferred stock, the investment company may be able to simplify its complex
capital structure. If the company intends to issue more shares in the IPO, the company may

need to amend the corporate charter. Any significant company initiative should be considered

during the registration process. The company may need to revise and update the prospectus,

submit additional SEC filings, or distribute a new preliminary prospectus during the

registration process. Any major initiative should be evaluated for its impact on the registration

process to avoid any possible delays. Before the begin the IPO process, the company should

conclude all major acquisitions, neupdatediate new royalty and lease agreements, and

establish management compensation programs, and if necessary, make changes in key

personnel and directors.

Investment strategy:

Developing an investment strategy that allows one to invest with confidence and clarity in the

long run is one of the most important and daunting things an individual can do. A systematic

approach to portfolio planning that revolves around five essential steps is required for the

construction of a successful investment portfolio. Understanding the current situation of an

investor compared to where they wish to be is a crucial step to planning for the future. In

light of the investor's most important goals, it is necessary to assess the investor's current

assets, liabilities, cash flow, and investments. To determine if there are gaps between the

investment strategy and broad goals, goals must be defined. As part of this process, the

investor must discuss his or her values, beliefs, and priorities, which all guide the

development of a winning investment strategy. An investor's risk-return profile is essential to

determining their investment objectives. For a portfolio strategy to deliver the required returns

with an acceptable level of risk, an investor must determine how much risk he or she is

willing to assume, and how much volatility he or she is able to endure. Benchmarks are then

developed for tracking a portfolio's performance once the risk-return profile has been

established. Asset allocation strategies can be developed based on the risk-return

diversify their assets in order to attain the desired return while maintaining optimum

diversification. According to an acceptable range of volatility for the portfolio, the investor

can also allocate percentages of stocks, bonds, cash, and alternative investments to various

asset classes. Asset allocation strategies are determined by analyzing the investor's current

financial status and goals and are usually revised as circumstances change. The asset

allocation strategy determines the parameters by which investments are selected. Active

management versus passive management largely determines the type of investment selected

by investors. In a portfolio managed actively, stocks and bonds might be included if there is

enough asset diversification to meet the goals of the portfolio. Investing in mutual funds or

exchange-traded funds, such as exchange-traded funds, allows small portfolios to achieve the

proper diversification. Using index funds from different asset classes and economic sectors,

an investor might construct a passively managed portfolio.