Australia's Macquarie Group $Macquarie(MQG.AU)$ is set to inject up to $5 billion into $APPLIED DIGITAL CORP(APLD)$ , securing a 15% stake in the company.
Boosted by this news, $APPLIED DIGITAL CORP(APLD)$'s shares soared over 15% in pre-market trading on Tuesday.
APPLIED DIGITAL CORP is scheduled to release its second-quarter earnings after the market closes on Tuesday, with investors eagerly anticipating the results.
Macquarie's asset management subsidiary has finalized an agreement:
To invest up to $900 million in the data center campus project of APPLIED DIGITAL CORPlocated in North Dakota.
In addition, the subsidiary holds the right of first refusal to invest an additional $4.1 billion in future data center projects of $APPLIED DIGITAL CORP(APLD)$ over the next 30 months.
The company's CEO, Wes Cummins, noted that this partnership provides $APPLIED DIGITAL CORP(APLD)$ with ample funds to build high-power-demand data centers.
This news was disclosed by APPLIED DIGITAL CORP, headquartered in Dallas, Texas. The Wall Street Journal was the first to report this significant news.
$APPLIED DIGITAL CORP(APLD)$ stated that the new funds will primarily be used to repay the debt incurred for the construction of the data centers in North Dakota, and the company is expected to recover over $300 million of its equity investment.
Over the past two years, $APPLIED DIGITAL CORP(APLD)$ 's stock price has more than tripled, driven by investors' high expectations for the strong growth potential of AI companies and data center providers.
Currently, computing infrastructure providers like APPLIED DIGITAL CORP are highly sought after, with numerous companies reaching out to leverage their capabilities to train their own AI models, aiming to gain a competitive edge in the market.
It's worth mentioning that tech giant $Microsoft(MSFT)$ also announced earlier this month that it plans to invest around $80 billion in AI data centers in fiscal 2025 to meet the growing computational demands.
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