DALLAS - Applied Digital Corporation (NASDAQ:APLD), a company specializing in the design and operation of High-Performance Computing (HPC) data centers, has secured a $20 million unsecured loan on January 30, 2024. The two-year loan, which carries a 12.5% interest rate, will provide the company with additional liquidity to expand its HPC data center operations.
In addition to the loan, Applied Digital has also arranged $16 million in site-level financing for its Jamestown HPC facility, with the expectation of closing the deal shortly. The funds are earmarked for the continued development of the company's new Ellendale HPC facility. According to Applied Digital's CFO, David Rench, this financing represents a vote of confidence in the company's business model and growth prospects.
Applied Digital's business focuses on creating advanced data centers to address the increasing demands of the HPC market in North America. With the rise of digital infrastructure requirements, the company aims to provide solutions that cater to the needs of this expanding industry.
The information in this article is based on a press release.
InvestingPro Insights
As Applied Digital Corporation (NASDAQ:APLD) secures significant financing to bolster its High-Performance Computing (HPC) data center operations, investors are closely monitoring the company's financial health and market performance. According to real-time data from InvestingPro, the company has a market capitalization of $519.91 million, reflecting its current valuation in the market. Despite the company's aggressive growth strategy, it is important to note that Applied Digital is not profitable over the last twelve months, with a negative P/E ratio of -13.71, which further dips to -17.55 when adjusted for the last twelve months as of Q2 2024.
However, the company's revenue growth has been impressive, with a surge of 312.24% over the last twelve months as of Q2 2024, indicating a robust expansion in sales. This aligns with an InvestingPro Tip that analysts anticipate sales growth in the current year. Yet, the company's stock has experienced significant volatility, as evidenced by a 42.2% decline in the one-month price total return as of a recent 2024 date. This high volatility is further underscored by another InvestingPro Tip, which notes that the stock generally trades with high price volatility.
For investors seeking comprehensive analysis and additional insights, there are more InvestingPro Tips available that could provide a deeper understanding of Applied Digital's financial position and market dynamics. By using the coupon code SFY24 to get an additional 10% off a 2-year InvestingPro+ subscription, or SFY241 to get an additional 10% off a 1-year InvestingPro+ subscription, investors can access these valuable tips to make more informed decisions.
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