Applied Digital Raises $2.15bn at 6.75% While CoreWeave Carries $21bn Debt
Applied Digital’s total debt jumped from $468m to roughly $5bn after its latest $2.15bn borrowing at 6.75%, significantly raising annual interest obligations. Nearly 70% of its $16bn contracted revenue pipeline depends on heavily indebted CoreWeave, which carries $21bn in debt and lost $1.2bn last year.
1. Debt Raise Details
Applied Digital executed a $2.15bn unsecured borrowing at a 6.75% interest rate, driving its total debt from $468m to approximately $5bn over the past year. This increase will substantially raise annual interest expenses and pressure cash flow.
2. CoreWeave Dependence and Credit Risk
About 70% of Applied Digital’s $16bn contracted revenue pipeline hinges on CoreWeave, which holds $21bn in debt and reported a $1.2bn loss last year. The concentration exposes Applied Digital to potential counterparty defaults and credit deterioration.
3. Upcoming Earnings and Economic Calendar
Applied Digital is set to report Q1 results in the first full week of April alongside releases of PCE, CPI, GDP revisions and FOMC minutes. These economic events could influence borrowing costs and investor sentiment ahead of the earnings release.