Fearless of geopolitical risks! Applied Digital(APLD.US) successfully issued $2.15 billion in bonds to provide computing power for Oracle.

The WisdomTree Finance APP has learned that the crypto mining company Applied Digital (APLD.US) raised funds by issuing $2.15 billion in junk bonds to finance additional computing capacity for Oracle (ORCL.US). This indicates that despite increasing uncertainty, market demand for AI-related debt remains strong.

The bond issuance was completed ahead of schedule, with pricing at the low end of the offered yield range, approximately 7.23%. Goldman Sachs led the issuance.

This transaction is one of the few debt offerings priced on Tuesday. Due to heightened geopolitical tensions following the U.S. and Israel’s attacks on Iran, along with the risk of expanding conflicts in the Middle East, most borrowers have adopted a wait-and-see approach.

Applied Digital stated that the proceeds from this issuance will be used to fund the construction of a 200 MW data center in North Dakota, which has already been leased to Oracle.

This deal highlights how companies with junk ratings are contributing to the large-scale capital expenditures needed to expand cloud giants’ computing capabilities. Investor interest in such debt remains strong, as seen in a recent issuance supported by asset management firm Tract Capital, as well as financing by crypto miners Cipher Mining Inc. and TeraWulf Inc.

Applied Digital paid a higher yield in November to secure investor support for a $2.35 billion issuance, which funded facilities primarily leased to the junk-rated company CoreWeave Inc.

According to data, the bonds were issued at a price of 97 cents—matching the record for the second-largest discount issuance in 2025. However, Trace data shows that the bonds have since rebounded to nearly 105 cents.

In October, Applied Digital stated that the North Dakota data center project is expected to generate $5 billion in contract revenue over approximately 15 years.