Applied Digital Just Borrowed Another $2 Billion. Its Biggest Customer Is $21 Billion in Debt.

Applied Digital's total debt surged from $468M to roughly $5.0B in just over a year, including a latest $2.15B financing at a 6.75% interest rate. The sharp leverage increase and relatively high coupon materially raises refinancing and interest‑expense risk, likely pressuring equity valuation and liquidity.

Analysis

Applied Digital's total debt surged from $468M to roughly $5.0B in just over a year, including a latest $2.15B financing at a 6.75% interest rate. The sharp leverage increase and relatively high coupon materially raises refinancing and interest‑expense risk, likely pressuring equity valuation and liquidity.