Cryptocurrency mining firm Applied Digital Corp (APLD.US) has raised $2.15 billion through the issuance of high-yield bonds to finance the construction of additional computing capacity for Oracle Corp (ORCL.US). This move highlights sustained market demand for artificial intelligence (AI)-related debt despite growing uncertainties. The bond offering was concluded ahead of schedule and priced at the lower end of the marketed yield range, around 7.23%. Goldman Sachs Group led the issuance. This transaction was one of the few debt offerings priced on Tuesday, as most borrowers opted to wait on the sidelines amid escalating geopolitical tensions following a U.S.-Israel strike on Iran and risks of a broader Middle East conflict. Applied Digital indicated that the proceeds will fund the construction of a 200-megawatt data center in North Dakota, which has been leased to Oracle. The deal underscores how companies with speculative-grade credit ratings are contributing to the significant capital expenditures required to expand the computing capacity of major cloud providers. Investor appetite for such debt has remained strong, as evidenced by a recent issuance backed by asset manager Tract Capital, as well as financing secured by cryptocurrency miners Cipher Mining Inc. and TeraWulf Inc. In November, Applied Digital paid a higher yield to secure investor support for a $2.35 billion issuance, which funded a facility primarily leased by speculative-grade company CoreWeave Inc. Data shows that those bonds were initially issued at 97 cents on the dollar—matching the second-largest discount for an issuance in 2025. However, Trace data indicates the bonds have since recovered to near 105 cents. In October, Applied Digital stated that the North Dakota data center project is expected to generate $5 billion in contracted revenue over its approximately 15-year lease term.
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