- Applied Digital will borrow up to $15 million from Vantage Bank Texas.
- The new funds will benefit the company’s Texas facility, which is currently under development.
Hosting provider Applied Digital, formerly Applied Blockchain, has secured a $15 million loan agreement with Vantage Bank Texas to expand its operations in the state. So far, the company has borrowed nearly $4.7 million, according to a filing filed with the U.S. Securities and Exchange Commission on Monday, defaulted over $100 million and Core Scientific, the largest miner by hash rate, raising the possibility of bankruptcy.
Applied Digital’s agreement includes 16 installments of up to $937,500 at a fixed interest rate of 6.15%. The loan matures in April 2028.
The new financing will be used for the company’s second facility, currently under development in Garden City, Texas, which is expected to have a capacity of 200 megawatts. The loan is secured by the leasing interest in the Garden City facility, a security interest in the assets of Applied Digital’s subsidiary Rattlesnake Den I, LLC (the Borrower) and a security interest in the form of assignment security over Applied Digital’s rights and interests in the hosting master agreements related to the facility, as per the filing. In July, the company secured an additional $15 million loan from Starion Bank to pay off existing debt.