Applied Digital Shares Surge

(Reuters) – Applied Digital shares soared nearly 65% to reach their highest level in over a month on Thursday. This surge follows the announcement that the data center operator will receive $160 million in financing from a group of investors, including chip giant Nvidia (NASDAQ: NVDA).

Investors in this deal also include the privately-owned real estate firm Related Companies.

Applied Digital designs and operates data centers to provide digital infrastructure solutions, primarily for businesses looking to adopt generative artificial intelligence technology.

Despite this surge, the company’s shares have fallen about 52% so far this year, as of the last close.

The company has agreed to issue around 49 million shares of its common stock at $3.24 per share, equivalent to its closing price on September 4, through a private placement.

In August, the company reported a larger-than-expected loss for the fourth quarter, mainly due to significant expenses related to facilities and equipment that have yet to generate revenue.