Applied Digital, Cipher Mining, CleanSpark look to raise billions of dollars in senior notes for AI data center build-outs

Three companies aiming to raise nearly $5 billion between them

Three cryptomine data center firms pivoting to AI and HPC facility development are looking to raise billions of dollars as they build out new infrastructure.

Applied looks to raise $2.35bn for North Dakota build-out

Applied Digital, which is set to host CoreWeave at its site in North Dakota, this week announced plans to raise $2.35 billion in senior secured notes.

Applied subsidiary, APLD ComputeCo LLC (APLD Compute), intends to offer $2.35bn aggregate principal amount of senior secured notes due 2030.

The proceeds will be used to fund a portion of the construction and associated expenses of its 100MW and 150MW data centers, ELN-02 and ELN-03, at Applied’s 400MW Ellendale campus in North Dakota (aka Polaris Forge 1). It will also be used to pay down other debt.

The notes will be guaranteed against the assets of APLD Compute.

Cipher seeks $1.4bn for Texas campus

Cipher Mining, a company set to host Google-partnered AI cloud firm Fluidstack and Amazon Web Services, is also looking to raise funds.

The company’s wholly-owned subsidiary, Cipher Compute LLC, intends to offer $1.4bn aggregate principal amount of senior secured notes due 2030.

Proceeds from the offering will finance a portion of the construction cost of the planned Barber Lake data center campus near Colorado City, Texas.

The notes will be guaranteed against the assets of Cipher Compute.

CleanSpark looks to raise $1.15bn amid AI pivot

CleanSpark, a cryptomining data center firm pivoting to develop AI and HPC facilities, has announced its own planned fundraising.

The company initially announced plans to offer $1bn aggregate principal amount of zero percent convertible senior notes due 2032, but the figure was revised upwards to $1.15bn.

The company aims to use part of the proceeds for the repurchase of approximately $460 million of the common stock from investors.

The remaining proceeds will go towards the expansion of the company's power and land portfolio, the development of data center infrastructure, the repayment of outstanding Bitcoin-backed line of credit balances, and general corporate purposes.