**Applied Digital to Raise $375 Million Through Private Placement**
Applied Digital, a Bitcoin mining hosting and cloud services company, plans to raise $375 million through a private placement of convertible notes, as reported by BlockBeats news. The issuance is expected to close on November 4, 2024, with an annual interest rate of 2.75%. The notes will expire in 2030, and initial purchasers will have the option to purchase an additional $75 million.
The company intends to use part of the funds for capped option transactions to mitigate shareholder dilution risk and invest approximately $84 million in stock repurchases.
**Applied Digital’s Business Model and Revenue**
Although Applied Digital is not directly involved in Bitcoin mining, it provides data center hosting services to other companies. The company’s latest financial quarter report reveals that its $60.7 million revenue comprised $34.8 million from Bitcoin mining hosting services (57%) and $25.9 million from cloud services (43%).
**Source Link**: [BlockBeats News](https://m.theblockbeats.info/news/268778)