According to Deep Tide TechFlow news on November 1, The Miner Mag reported that Bitcoin mining hosting and cloud services company Applied Digital announced it will raise $375 million through a private placement of convertible notes. The company initially planned to issue $300 million but later increased it to $375 million, and the initial purchasers will receive an additional $75 million in subscription options.
According to the announcement, these convertible notes have an annual interest rate of 2.75% and will mature in 2030. The company plans to use part of the funds for capped call option trades to hedge against potential shareholder dilution risk, while approximately $84 million will be used for a stock repurchase program.
Notably, in the quarter ending August 31, 2024, Applied Digital achieved revenue of $60.7 million, with the Bitcoin mining hosting business contributing $34.8 million, accounting for 53%. The cloud services business accounted for the remaining 43% of revenue, while the high-performance computing (HPC) department has not yet generated revenue. Since 2023, the company has diversified its data center business by providing cloud services and HPC capabilities.