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

Shares of Applied Digital Corp (NASDAQ:APLD) have fallen sharply in March amid concerns over the company's massive debt-funded expansion and Bitcoin's recent weakness.

Mar. 30, 2026 at 4:53pm

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An extreme close-up of industrial banking equipment and machinery, conveying the physical, tangible nature of financial infrastructure without using literal currency or charts.The capital-intensive nature of Applied Digital's AI infrastructure expansion is reflected in the heavy machinery and equipment powering its operations.Harwood Today

Applied Digital, a company focused on building AI infrastructure, saw its stock drop 23% in March as investors digested the company's $2.15 billion debt deal to fund the expansion of its Polaris Forge 2 campus in North Dakota. The debt financing and the capital-intensive nature of scaling the business have raised concerns about leverage and execution risk. Additionally, the recent 5.25% decline in Bitcoin prices over the past week may be weighing on investor sentiment towards the stock.

Why it matters

Applied Digital's massive debt-funded expansion and the company's reliance on Bitcoin prices are key factors that are impacting investor sentiment and the stock's performance. The company's ability to execute on its ambitious growth plans while managing its debt load will be crucial in determining its long-term success.

The details

On March 4, Applied Digital announced that a subsidiary had priced $2.15 billion of 6.75% senior secured notes due 2031 to help fund the 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.

  • On March 4, Applied Digital announced its $2.15 billion debt deal.
  • Bitcoin was down about 5.25% over the past week near $67,700 on Monday.

The players

Applied Digital Corp

A company focused on building AI infrastructure, including the expansion of its Polaris Forge 2 campus in Harwood, North Dakota.

Babcock & Wilcox

A company that received full notice to proceed on a $2.4 billion power generation project for Base Electron, an independent power producer backed by Applied Digital.

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.

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The takeaway

The significant debt-funded expansion and the company's reliance on Bitcoin prices have raised concerns about Applied Digital's leverage and execution risk. Investors will be closely watching the company's ability to manage its debt load and execute on its ambitious growth plans in the face of market volatility.