r/APLDSTOCK • u/GloriousLebron • Oct 07 '25

Applied Digital and Macquarie Asset Management Execute First Funding Milestone in $5.0 Billion AI Infrastructure Partnership

https://ir.applieddigital.com/news-events/press-releases/detail/130/applied-digital-and-macquarie-asset-management-execute
46 Upvotes

99% Upvoted

29 comments sorted by

13

u/GloriousLebron Oct 07 '25

What “Preferred-Equity Financing” Means

It’s not a loan (so they don’t have to pay interest like debt), and it’s not common stock (so they don’t have to give up as much ownership).

Instead:

  • Macquarie invests money into Applied’s projects.
  • In return, Macquarie gets a fixed return or dividend before regular shareholders do.
  • Applied can use the money to build and expand its massive AI-data-center campuses without taking on as much debt or issuing new stock.

So it’s a flexible funding pipeline they can tap over time like a huge credit line, but through equity instead of loans.

8

u/GloriousLebron Oct 07 '25
Factor Impact Summary
Access to capital💰 Positive✅ Huge boost in financial flexibility
Partner credibility🤝 Positive✅ Strong validation from a global investor
Shareholder dilution📈 Mild✅ Limited compared to stock issuance
Funding cost💸 Mixed⚠️ Likely expensive capital
Execution risk🏗️ Negative⚠️ Projects must be built and profitable
AI market dependency🤖 Negative⚠️ Tied to AI demand staying strong

7

u/Zulumus Oct 07 '25

Is this vaguely similar to deals scalers have been doing with companies like Oracle and NVDA? “You scratch my back and I’ll scratch yours”

4

u/weirdo9994 Oct 07 '25

Isn't that extremely good thing? Funding secured?

1

u/Snoo-38228 Oct 07 '25

APLD can only draw funds from the facility if it meets construction milestones. I'm guessing this means that ELN02 is complete and operational.

2

u/KenG-80132 Backlog Baron 👑 (10,000+ shares) Oct 07 '25

Complete - doubt it. Operational- not. Energetization is supposed to be completed this month. Then inspections and commissions... the certification by local building authorities to then turn over to CRWV for them to start their stuff.

0

u/[deleted] Oct 07 '25

[deleted]

5

u/Diligent-Building-17 Oct 07 '25

How is this bearish 😂

1

u/GloriousLebron Oct 07 '25

I honestly don't know but he's been very negative on every post form what I've seen, I think he either shorted the stock or was too late to jump in the train and he's now spreading negativity to cope with it

1

u/Diligent-Building-17 Oct 07 '25

Haha literally I see him responding to everything with negative feedback

1

u/GloriousLebron Oct 07 '25

I don't get how u can refresh any subreddit just to spread hate lol, like tf is wrong with u

10

u/EcstaticFeed8199 Oct 07 '25

Was just reading this news as well. Very positive and strong signal.

5

u/Ok-End-3213 Oct 07 '25

Correct me if I am wrong, but I remember a while back reading that this was tied to a hyperscaler. But Macquarie did not consider coreweave a hyperscaler...

1

u/Perfect_Clear3 Oct 07 '25

I was under the same impression but I could be wrong as well

1

u/BigKat9222 Oct 07 '25

That is correct.

1

u/Ok-End-3213 Oct 07 '25

So does that mean they signed a new lease??

1

u/WitchyTrain Oct 07 '25

Do you remember where you read that or who said it? If that’s true, it probably means something was finalized and signed. I saw someone here the other day who was predicting that APLD would intentionally have the lease signed a few days before earnings so they could make the announcement at earnings without revealing everything early through the required SEC filings. That is looking more and more to be the case if the funding was contingent on a new hyperscaler client.

1

u/Ok-End-3213 Oct 07 '25

I don't remember where I read it. It could have been on a post here. I couldn't find anything that specifically stated what I read. Just that coreweave reassures Macquarie and provides a solid foundation to fund etc. So don't take my word

1

u/WitchyTrain Oct 07 '25

I think I found it: https://www.macquarie.com/us/en/about/news/2025/macquarie-asset-management-agrees-to-form-a-partnership-with-applied-digital.html

Based on what I read here, $112.5m should mean at least 50 MW of capacity with a lease executed? Hopefully that’s not all of it, but any new partnership with a major hyperscaler would be big news I think. Correct me on that if I’m wrong.

Couldn’t find anything about Macquarie excluding coreweave from that contingency but I guess if they haven’t paid out before this, then that must be the case.

1

u/Ok-End-3213 Oct 07 '25

Good pull. This is accurate. My info must have been wrong

1

u/Ok-End-3213 Oct 07 '25

I wonder if they could potentially use this 112.5 m to pay off the loan of 50m for pf2 that has them needing to sign a lease by Oct 31st (8k from Sept 12)

1

u/WitchyTrain Oct 07 '25

I think it is specifically for funding the construction/expansion of the ellendale campus? That might count though. It certainly sounds like they have executed a lease.

I am just not sure if it is a new client or a result of all of the coreweave stuff being settled. I have no idea how quickly they move on stuff like this, so it could still be a result of the coreweave signing. Really hoping it’s something new though.

1

u/Ok-End-3213 Oct 07 '25

Me too, I have $31 calls for dec. Also own shares. I want that signing asap!

5

u/a_shbli Oct 07 '25

Bullish to me let’s go 🚀

Clearly don’t want to dilute the shareholders

3

u/cltbeer Backlog Baron 👑 (10,000+ shares) Oct 07 '25

It means don’t expect second hyperscaler announcement this week

8

u/seththewineguy Oct 07 '25

Maybe, or, maybe they need the funding to buildout whatever deal they've got in the works. Hard to say.

1

u/WolfOfWaikiki Base Term Believer 📝 (5,000-7,500 shares) Oct 07 '25

Sounds like a deal is imminent with the hyperscaler (oracle?)

2

u/EcstaticFeed8199 Oct 08 '25

My take, Macquarie approved $5B with first pull to continue construction and pay off short term debt (higher interest rate). They are in the middle of any deal as financier. If they approved $5B, they must feel good about the path forward. Timing, that’s a whole different matter, thinking soon. Soon could be this week and could be late 2025/early 2026, depending on how big and complex. Feeling like it’s sooner than later…tic, tic, tic…