Applied Digital Stock Drops 23% In March On Debt Overhang, Bitcoin Weakness

Applied Digital Corp (NASDAQ:APLD) shares are trading lower Monday morning as investors continue to digest the company's massive debt-funded AI infrastructure expansion announced earlier this month, while broader weakness in Bitcoin (CRYPTO: BTC) over the past week appears to be adding pressure to sentiment across high-beta digital infrastructure and crypto-adjacent names. Applied Digital stock is among today’s weakest performers. What’s pressuring APLD stock? Applied Digital's $2.15 Billion Debt Deal Funds Polaris Forge 2 Expansion On March 4, Applied Digital said a subsidiary priced $2.15 billion of 6.75% senior secured notes due 2031 to help fund development of 200 megawatts of critical IT capacity at its Polaris Forge 2 campus in Harwood, North Dakota. In a related update, Babcock & Wilcox said it received full notice to proceed on a separate $2.4 billion power generation project for Base Electron, an independent power producer backed by Applied Digital, with the goal of supplying 1.2 gigawatts of electricity to Applied Digital's AI Factory campuses. Bitcoin Weakness And AI Buildout Risks Weigh On Applied Digital Sentiment While that financing package reinforced Applied Digital's long-term AI buildout ambitions, it also likely kept investor focus on leverage, execution risk and the capital intensity required to scale the business. Bitcoin, meanwhile, was down about 5.25% over the past week near $67,700 on Monday, which may be weighing further on risk appetite. Applied Digital Falls Below Key Short-Term Moving Averages Applied Digital shares have pulled back sharply from a recent peak near $41 and are now trending toward the low-$20s, showing clear short-term weakness after a volatile run. The stock is trading below its 20-day and 50-day moving averages while remaining above the rising 200-day, suggesting weakening momentum but a still-intact longer-term uptrend. APLD Shares Slide Monday Afternoon APLD Price Action: Applied Digital shares were down 11.11% at $21.12 at the time of publication on Monday, according to Benzinga Pro data. Image: Shutterstock