Applied Digital shares saw a sharp rise of nearly 65% on Thursday, reaching their highest point in over a month, following news of a $160 million financing deal with a group of investors, including Nvidia. This significant investment also involves privately-owned real estate firm Related Companies. The funding will support Applied Digital’s efforts in providing digital infrastructure solutions through its data centers, particularly for businesses adopting generative artificial intelligence (AI) technology.
As part of the deal, Applied Digital agreed to issue approximately 49 million shares of common stock at $3.24 per share, matching its Sept. 4 closing price. Despite this surge, the company’s shares had fallen roughly 52% this year, as of the previous close. The company recently posted a larger-than-expected loss for the fourth quarter in August, citing substantial costs related to facilities and equipment that have not yet generated revenue.
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