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Applied Digital Spins Off ChronoScale and Secures $300 Million Bridge to Build Third AI Data Center

The structure aims to speed expansion by giving each unit its own funding lane.

Overview

  • Applied Digital separated its cloud operation into ChronoScale, which now trades on Nasdaq as CHRN with Applied Digital holding about 97% of the shares.
  • The company closed a $300 million senior secured bridge loan led by Goldman Sachs with a 364‑day term at SOFR plus 275 basis points.
  • Management said the funds will build a third AI data center at the Polaris Forge 1 campus in North Dakota.
  • Shares of Applied Digital jumped over back‑to‑back sessions and set a new 52‑week high, according to Benzinga Pro data.
  • ChronoScale is pitched as a GPU‑based platform for AI training, inference, and high‑performance computing, which CEO Wes Cummins said will scale more efficiently under the new structure.