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Applied Digital Soars 19.77% on $5 Billion Macquarie Partnership Announcement

Applied Digital has entered into a transformative partnership with Macquarie Asset Management, which will see an investment of up to $5 billion in the company's high-performance computing (HPC) data centers. This significant capital infusion is set to support the development of over 2 gigawatts of HPC data center capacity, including the Ellendale HPC Campus. The initial investment of $900 million will be directed towards the Ellendale campus, with Macquarie having the option to invest an additional $4.1 billion in future projects. This partnership positions Applied Digital as a leading designer, builder, and operator of HPC data centers in the U.S., with a focus on advanced AI workloads.

The investment structure includes a perpetual preferred and 15% common equity interest in Applied Digital's HPC business segment, allowing the company to maintain an 85% ownership stake in its HPC assets. This strategic move is expected to repay existing project-level debt and recover a significant portion of the company's equity investment in the Ellendale campus. Wes Cummins, Chairman and CEO of Applied Digital, expressed enthusiasm about the partnership, stating that it positions the company for significant growth and establishes it as a leader in the Tier 3 data center infrastructure sector.

Applied Digital's stock (APLD) has surged 19.77% to $9.30 as of 7:41 am on January 14th, up from its previous close of $7.765.