Bitcoin Mining Hosting Firm Applied Digital to Raise $375 Million in Convertible Notes Offering

Applied Digital, a company that provides hosting and cloud services for bitcoin mining, plans to raise $375 million through private placement convertible notes. The notes have an annual interest rate of 2.75% and will mature in 2030. Initial buyers can also purchase an additional $75 million. The company plans to use some of the funds for capped option trading to hedge shareholder dilution risks and invest approximately $84 million in stock buybacks.

Applied Digital does not directly participate in bitcoin mining, but provides data center hosting services for other companies. Its latest quarterly report shows that $34.8 million of its $60.7 million in revenue came from bitcoin mining hosting services, with the remaining 43% coming from cloud services.