Applied Digital plans to build a new facility

  • 14:17 Nov 16, 2022
Applied Digital plans to build a new facility

The hosting provider has turned to Vantage Bank Texas for a $15 million loan. The company will use the funds to build a new facility.

So far, Applied Digital has managed to get about $4.7 million, according to a report that was sent to the SEC two days ago. There will be a total of 16 transactions, up to $937,500 each. The interest rate is 6.15%. The loan must be repaid by April 2028.

The capacity of the new data center, which will be built in Texas, will reach 200 MW. Assets, including those of its subsidiaries, will serve as collateral.

The company previously closed a $15 million loan with Starion to reduce existing debt. Obtaining loans secured by facilities and equipment is common in the mining industry. Iris Energy and Core Scientific are now actively struggling with the amount of debt.

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