The post Applied Digital stock skyrockets 13% on $5.00 billion investment appeared on BitcoinEthereumNews.com.

Key points Applied Digital is a data center operator. The company received $5 billion in funding from Macquarie Asset Management. Applied Digital reports its earnings on January 14 after the market closes. Data center operator gets $5 billion investment from Macquarie. Shares of Applied Digital (NASDAQ:APLD) were rising on Tuesday, up more than 13% on the day to roughly $8.80 per share. The move comes on the day that the data center operator is set to release its fiscal second quarter earnings. Earnings will be posted after the market closes on Tuesday. Analysts anticipate revenue of $61.6 million and a loss of 14 cents per share. The catalyst Tuesday was a major investment in the company to bolster its data centers and high-performance computing (HPC) capabilities. $5.00 billion investment Applied Digital announced Tuesday that it had secured a $5.0 billion investment from Macquarie Asset Management (MAM) in the form of a perpetual preferred equity financing facility. That means the company has $5 billion it can tap into to invest in its growth. Of that amount, $900 million will go toward the planned 400 MW build-out of Applied Digital’s Ellendale HPC data center campus. Part of it will also be used to pay off the bridge debt and other expenses. The other $4.1 billion will be available to invest in Applied Digital’s future HPC data center pipeline, as needed. The company sees this as a transformative agreement that will allow Applied Digital to become a top-tier HPC data center designer and operator, building centers that can handle advanced AI workloads. “We believe this expanded relationship with MAM positions Applied Digital for significant growth in the industry, establishing Applied Digital as one of the fastest-growing HPC data center owners, operators and developers in the United States,” Wes Cummins, chairman and CEO at…

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Filed under: News - @ January 15, 2025 6:27 am