Applied Digital Soars with $160M Funding Led by Nvidia
Applied Digital, a company specializing in the design and operation of data centers for high-performance computing applications, has secured $160 million in private placement financing. The investment round includes significant contributions from institutional investors, Nvidia, and Related Companies. The funds will be raised through the issuance of 49,382,720 shares of common stock at a price of $3.24 per share, matching the closing price on September 4, 2024. The closing of the financing deal is subject to customary conditions.
This infusion of capital is expected to support Applied Digital's growth initiatives, including a major data-center project in North Dakota and the expansion of its cloud-computing business. The announcement of the financing deal led to a significant rise in Applied Digital's shares, which increased by nearly 43%. This development comes on the heels of the company reporting a larger-than-expected loss for the fourth quarter, attributed to expenses related to facilities and equipment that have not yet generated revenue. The investment underscores the company's ongoing commitment to providing advanced digital infrastructure solutions for businesses adopting generative artificial intelligence technology.
