Why Shares of Applied Digital Are Getting Crushed This Week

Since the close of trading on Friday, shares of the artificial intelligence data center company Applied Digital Corporation (NASDAQ: APLD) are trading roughly 24% lower, as of 3:12 p.m. ET Thursday. The company announced the issuance of senior secured notes and a drawdown from one of its funding partners.On Monday, Applied Digital announced its intention to conduct a private offering to raise $2.35 billion in senior secured notes due in 2030, the proceeds of which will be used to help fund construction costs related to its 100-megawatt (MW) and 150 MW data centers at its North Dakota campus. The notes add significant debt to the balance sheet and raise debt costs, which will affect financial results.Image source: Getty Images.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool