Applied Digital doubles Series G preferred stock offering to $300 million

Published 15/08/2025, 22:06
Applied Digital doubles Series G preferred stock offering to $300 million

Applied Digital Corp. (NASDAQ:APLD), whose stock has surged over 260% in the past year according to InvestingPro data, disclosed Thursday that it amended its preferred equity purchase agreement to increase the aggregate commitment for its Series G Convertible Preferred Stock from $150 million to $300 million. The amendment, signed August 14, 2025, also removes a previous limit that capped the aggregate purchase price for any single issuance at $75 million. The company stated that these changes are intended to provide additional capital for the ongoing construction and development of its Polaris Forge I data center in Ellendale, North Dakota. This capital raise comes as InvestingPro data shows the company is quickly burning through cash, with a current ratio of 0.77 indicating short-term obligations exceed liquid assets.

According to the filing, the offer and sale of the Series G Preferred Stock, as well as the shares of common stock issuable upon conversion, are being made in reliance on an exemption from registration under Section 4(a)(2) of the Securities Act of 1933.

In a related move, Applied Digital filed an amendment to the Certificate of Designations for the Series G Convertible Preferred Stock. The amendment increases the initial floor price for conversion to $12.50 from $4.25 and raises the minimum limit below which the floor price may not be reduced to $4.33 from $1.34. The floor price sets the minimum conversion price for the Series G shares, which can only be changed at the company’s discretion.

These updates were reported in a statement filed with the Securities and Exchange Commission. Applied Digital’s common stock is listed on the Nasdaq Global Select Market under the ticker APLD.

In other recent news, Applied Digital Corp reported its financial results for the fourth quarter of 2025. The company posted an earnings per share (EPS) of -$0.03, which exceeded analyst expectations of -$0.14. However, the company’s revenue did not meet projections, recording $38 million compared to the anticipated $42.07 million. In related developments, Craig-Hallum raised its price target for Applied Blockchain Inc to $18 from the previous $12, maintaining a Buy rating. The firm cited Applied Blockchain’s recent 150MW expansion as a significant factor in the adjustment. These updates reflect ongoing developments within the company and its market performance.

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