Bitcoin mining hosting company Applied Digital will raise $375 million through the issuance of convertible notes

Bitcoin mining hosting and cloud service company Applied Digital plans to raise $375 million through a private placement of convertible notes. The notes have an annual interest rate of 2.75% and will mature in 2030, with initial purchasers also able to buy an additional $75 million. The company plans to use part of the funds for capped options trading to hedge against shareholder dilution risk and to invest approximately $84 million in stock buybacks.

Applied Digital does not directly participate in Bitcoin mining but provides data center hosting services for other companies. Its latest quarterly report shows that out of $60.7 million in revenue, $34.8 million came from Bitcoin mining hosting services, while the remaining 43% came from cloud services.