APLD Secures $5B Equity Facility Amid Cloud Services Review
By ATTN Desk · Editorial oversight: Sean Han
APPLIED DIGITAL CORP (APLD)
Introduction
APPLIED DIGITAL CORP (ticker: APLD) is a Nasdaq-listed (NAS) digital infrastructure company that designs, builds, and operates AI data centers and high-performance computing (HPC) facilities. As of June 2, 2025, its share price stood at $10.3712, reflecting an increase of 51.85% intraday on a volume of 102,146,501 shares.
Corporate Structure
- Founded: 2021
- Employee count: 51–200
- Business segments:
- Data Center Hosting
- Cloud Services
- HPC Hosting
- Executive Leadership:
- Wes Cummins, Chairman & CEO
- Saidal Mohmand, CFO
- Erin Kraxberger, CMO
- Todd Gale, Chief Development Officer
- Laura Laltrello, COO
- Mark Chavez, CCO & General Counsel
- Nick Phillips, EVP Public Affairs & Real Estate Acquisitions
- LaTascha Durden, VP Human Resources
- Richard Williams, Director of EHS
Developments and News
- January 14, 2025: Entered a $5 billion perpetual preferred equity facility with Macquarie Asset Management for its HPC business, which includes up to 400 MW of capacity at $2.25 million per MW.
- April 30, 2025: Secured a $150 million convertible preferred equity facility with a 36-month term and a 4% discount to advance the Ellendale multi-building HPC campus.
- May 1, 2025: Filed an 8-K reporting the entry and termination of material agreements, unregistered equity sales, bylaw amendments, and other corporate changes.
- Mid-May 2025: Announced a review of strategic options for its Cloud Services segment due to competitive overlap with data center leasing clients and potential for a transition to a data center REIT structure.
- June 2, 2025: Filed an 8-K covering items 1.01, 3.02, 7.01, 8.01, and 9.01, indicating material events impacting corporate governance and financing.
Financial and Strategic Analysis
| Metric | Value |
|---|---|
| Market Cap (intraday) | $2.33 billion |
| Enterprise Value | $2.50 billion |
| Price/Sales (TTM) | 5.44 |
| Price/Book (MRQ) | 3.38 |
| Profit Margin (TTM) | –110.40% |
| Return on Assets (TTM) | –4.60% |
| Return on Equity (TTM) | –79.24% |
| Revenue (TTM) | $221.19 million |
| Net Loss (TTM) | $244.19 million |
| Diluted EPS (TTM) | –$1.46 |
| Total Cash (MRQ) | $68.74 million |
| Total Debt/Equity (MRQ) | 199.59% |
| Levered Free Cash Flow (TTM) | –$609.76 million |
| Beta (5Y Monthly) | 5.87 |
| 52-Week Range | $3.01 – $12.48 |
| Q3 2025 Revenue | $52.9 million (+22% YoY) |
Strategic moves:
- Financing facilities provide capital for the Ellendale HPC campus and support the broader project pipeline.
- The planned divestiture of the Cloud Services segment aims to align with data center leasing clients and facilitate a potential REIT conversion.
Market Position and Industry Context
- Operates within the AI and HPC infrastructure market alongside other data center REITs such as Digital Realty and Equinix.
- Currently supports over 280 MW of blockchain hosting in North Dakota, with a planned HPC/AI pipeline exceeding 1 GW.
- Competes based on facility design, energy efficiency, scalability, and advanced cooling solutions.
- Provides services to cryptocurrency mining and HPC/AI workloads in North America.
TL;DR
On June 2, 2025, APLD shares traded at $10.3712 (+51.85%) with a volume of 102 million shares. The company secured a $5 billion equity facility with Macquarie (Jan) and a $150 million convertible facility (Apr) to fund its Ellendale HPC campus. Mid-May earnings indicated a divestiture of the Cloud Services segment to support data center leasing and a possible transition to a REIT structure. Q3 2025 revenue increased by 22% to $52.9 million.