Shares of Applied Digital Corporation (NASDAQ: APLD) climbed dramatically on the charts today, surging 13.97% to $8.85. This spike comes after the company announced a transformative multi-billion-dollar partnership.
Over the past year, APLD has consistently garnered positive attention, with all 17 analyst recommendations marked as “Buy,” placing it alongside other high-performing peers like BBAI and CDW in the industry. Additionally, for those interested in exploring comparable opportunities, further insights can be found by filtering stocks within the “Information Technology Services” sector on our screener page.
Landmark Financing Deal
Applied Digital entered into a $5.0 billion perpetual preferred equity financing agreement with funds managed by Macquarie Asset Management (MAM). Through its subsidiary, APLD HPC Holdings LLC (“APLDH”), the company will issue perpetual preferred equity units for $2.25 million per megawatt (MW) of leased capacity, supporting the development of its Ellendale HPC Campus.
The agreement facilitates up to $900 million in funding for the 400 MW build-out of this cutting-edge campus. Investment proceeds will address multiple priorities, including completing the campus buildout, repaying $180 million in bridge debt, and recovering $300 million in equity investments. Additionally, MAM holds a right of first refusal for future HPC data center funding, amounting to $4.1 billion over the next 30 months.
Positioning for Industry Leadership
This partnership marks a pivotal moment for Applied Digital, solidifying its position as a key player in the HPC data center sector. The company plans to leverage its expanded capital access to construct over 2.0 GW of HPC data center capacity, including its flagship Ellendale campus. Maintaining an 85% ownership stake in HPC assets, Applied Digital is set to drive significant growth in high-demand markets for AI and advanced computing solutions.
Driving AI and HPC Innovation
High-growth sectors are served by Applied Digital’s purpose-built data centers, which are meant to enable cloud services for AI, machine learning, and GPU. As AI innovation continues to accelerate, APLD’s advanced infrastructure and strategic partnerships ensure its place at the forefront of delivering next-generation data center solutions.