Bitcoin hosting provider Applied Digital secures $15 million loan to expand in Texas
Quick Take
- Applied Digital will borrow up to $15 million from Vantage Bank Texas.
- The new funds will be put toward the company’s facility in Texas, which is currently under development.
Hosting provider Applied Digital, formerly known as Applied Blockchain, secured a $15 million loan deal with Vantage Bank Texas to expand its operations in that state.
The company has so far borrowed nearly $4.7 million, it said in a document filed with the U.S. Securities and Exchange Commission Monday.
Other companies in the mining industry have been struggling to meet debt payments, with Iris Energy recently defaulting on over $100 million in debt and Core Scientific, the biggest mining company in terms of hash rate, floating the possibility of bankruptcy.
Applied Digital's deal includes 16 installments of up $937,500, with a 6.15% fixed interest rate. The loan matures April 2028.
The new funds will be put toward the company's second facility, which is currently under development in Garden City, Texas and expected to reach a capacity of 200 megawatts.
The loan is secured by the leasehold interest on the Garden City facility, a security interest in assets owned by Applied Digital's subsidiary Rattlesnake Den I, LLC (the borrower) and a security interest in the form of a collateral assignment of Applied Digital's rights and interests in the master hosting agreements related to the facility, the filing said.
The company had closed an additional $15 million loan in July with Starion Bank in order to repay existing debt.
© 2023 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
