Applied Digital Stock Price, News & Analysis

Applied Digital has secured a $150 million convertible preferred equity facility to advance its Ellendale High Performance Computing (HPC) data center campus. The 36-month facility allows the company to draw funds in $25 million increments at its discretion, with no minimum commitments or penalties.

Key features of the facility include:

• Preferred stock priced at $1,000 per share with no preferred dividends
• 4% original issue discount
• Convertible to common stock at 95% of lowest daily VWAP or $4.25, whichever is greater
• 4.99% beneficial ownership cap and 19.99% NASDAQ blocker provision

CEO Wes Cummins confirms the capital will support the development of their second data center while completing construction on their first facility at the Ellendale campus. Northland Capital Markets served as Sole Placement Agent for this private financing arrangement with institutional investors.

Applied Digital (APLD) reported fiscal Q3 2025 results with revenues of $52.9 million, up 22% year-over-year. The company posted a net loss of $36.1 million ($0.16 per share), increasing 43% from the previous year.

Key developments include the Board's approval to sell the Cloud Services Business and a $375 million financing agreement with Sumitomo Mitsui Banking . The Cloud Services segment generated $17.8 million in revenues (220% YoY increase) but showed a sequential decline of $9.9 million due to technical issues in transitioning GPU capacity.

The Data Center Hosting segment generated $35.2 million in revenue, down 7% YoY. The company's facilities in Jamestown (106 MW) and Ellendale (180 MW) are operating at full capacity, with construction of a new 100 MW HPC facility in Ellendale progressing on schedule.

Applied Digital (Nasdaq: APLD), a provider of digital infrastructure for High-Performance Computing (HPC) applications, has scheduled its fiscal third quarter 2025 earnings conference call for Monday, April 14, 2025, at 5:00 p.m. Eastern Time. The company will release its financial results for the quarter ended February 28, 2025, after market close on the same day.

The conference call will feature management's prepared remarks followed by a Q&A session. Investors can dial 1-800-549-8228 (Conference ID: 19309) to participate. A replay will be available until April 21, 2025, accessible at 1-888-660-6264 (Passcode: 19309#).

Applied Digital (APLD) has secured a $375 million financing agreement with Sumitomo Mitsui Banking (SMBC) for its Ellendale High Performance Computing (HPC) data center campus. The financing will be used for two primary purposes: repaying existing obligations under the Macquarie Capital senior secured note and advancing the development of the first and second data center buildings at the Ellendale HPC Campus.

The company plans to replace this interim SMBC loan with permanent project financing, which is not expected to be dilutive to APLD's common stock. The company aims to secure a hyperscaler lease for the Ellendale HPC Campus as part of its strategy toward permanent financing. Northland Capital Markets served as Capital Markets Advisor, while Milbank LLP and Lowenstein Sandler LLP provided legal counsel to Applied Digital.

Applied Digital (APLD) reported fiscal Q2 2025 results with revenues of $63.9 million, up 51% year-over-year. The company posted a net loss of $138.7 million, impacted by $87.2 million loss on debt fair value changes and $25.4 million loss on debt conversion.

Key developments include a $5.0 billion perpetual preferred equity financing facility with Macquarie Asset Management for its HPC business, with an initial $900 million investment in the Ellendale HPC campus. The company also completed a $450 million offering of 2.75% Convertible Senior Notes.

The Cloud Services segment generated $27.7 million in revenues, up 523% YoY, while Data Center Hosting brought in $36.2 million. The company's Ellendale facility achieved significant milestones, including energizing the main substation transformer.

Applied Digital (APLD) has entered into a transformative $5.0 billion perpetual preferred equity financing facility with Macquarie Asset Management (MAM) for its HPC business. The agreement includes up to $900 million investment in the Ellendale HPC Campus and rights for MAM to invest up to an additional $4.1 billion across future data center projects.

The investment structure gives MAM a perpetual preferred and 15% common equity interest in Applied Digital's HPC business segment, while Applied Digital maintains an 85% ownership stake. The preferred equity will accrue a 12.75% annual dividend. The investment proceeds, combined with future project financing, will support the 400 MW Ellendale HPC Campus build-out, repay $180 million in bridge debt, and allow the company to recover over $300 million of its equity investment.

The closing is contingent upon executing a 100 MW hyperscaler lease at Ellendale. At closing, MAM will fund $225 million, with additional amounts available upon executing further acceptable leases.

Applied Digital (Nasdaq: APLD) has appointed Laura Laltrello as its new Chief Operating Officer, effective January 6, 2025. Laltrello brings nearly 20 years of executive leadership experience, with expertise in data center operations and large-scale infrastructure projects. She previously served as Vice President and General Manager of Building Automation Services at Honeywell International.

In her role as COO, Laltrello will work with the leadership team to execute the company's strategic vision and oversee daily operations. The appointment aims to strengthen Applied Digital's position in next-generation data centers and digital cloud solutions for AI applications.

As part of her employment package, Laltrello received an inducement award of 600,000 restricted stock units (RSUs), which will vest over three years. The award was granted outside the company's equity incentive plan and approved by the Board of Directors on December 27, 2024.

NEWSTAR Exchange has acquired Hadley Crossing, a 44-unit single-family rental community in Charlotte, North Carolina, and launched a new Delaware Statutory Trust (DST) offering for accredited investors. The property features 4-bedroom detached homes with premium amenities and achieved the #3 highest build-to-rent rental rates in Charlotte, with average household incomes exceeding $200,000.

The DST offering, Newstar 14 Hadley Crossing, is financed through Fannie Mae with 43% leverage and aims to raise approximately $14 million in equity. This marks NEWSTAR's fourth DST offering, following successful closures of three previous programs that raised over $50 million in equity. The property reached stabilization in less than 8 months and is being distributed by Preferred Capital Securities under Rule 506(c) of Regulation D.

Applied Digital (Nasdaq: APLD) has scheduled its fiscal second quarter 2025 earnings conference call for Tuesday, January 14, 2025, at 5:00 p.m. Eastern Time. The company will discuss its operations and financial results for the quarter ended November 30, 2024. A press release with detailed results will be issued after market close on the same day. The call will include management's prepared remarks followed by a Q&A session. A replay will be available from 8:00 p.m. ET on January 14 through January 28, 2025.