(Reuters) – Applied Digital shares jumped nearly 65% to hit their highest level in more than a month on Thursday after the data center operator said it would receive $160 million in funding from a group of investors including chip giant Nvidia (NASDAQ:NVID).
Investors in the deal would also include private real estate firm Related Companies.
Applied Digital designs and operates data centers to deliver digital infrastructure solutions primarily to enterprises looking to adopt generative artificial intelligence technology.
Its shares have fallen by around 52% so far this year, as of the last close.
The company agreed to issue approximately 49 million shares of its common stock at $3.24 per share, representing its closing price on Sept. 4, through a private placement.
In August, it posted a larger-than-expected fourth-quarter loss, weighed down by substantial expenses related to facilities and equipment that have not yet generated revenue.
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