Applied Digital has entered an agreement with a single investor, receiving a $50 million unsecured loan for its data center in Ellendale, North Dakota.

Applied Digital, formerly known as Applied Blockchain, does not mine crypto but provides crypto and high-performance computing infrastructure to miners.

The convertible debenture bears no interest, has an original issue discount of five percent, and has a term of 54 weeks.

David Rench, CFO at Applied Digital, said: “We intend to use the net proceeds from the private financing, supplemented by the proceeds from our announced sale of the Garden City facility, to finance substantial advancements in our construction phase of the HPC data center in Ellendale, North Dakota. Concurrently, we continue negotiating our project-level financing to ensure timely project completion and fulfillment of our contractual obligations.”

Applied Digital received a $20 million loan earlier this year to help fund the construction of its Ellendale facility. However, in February, the Ellendale data center was suffering an ongoing power outage.

The company sold its Garden City campus last month to Marathon Digital Holdings for $87.3 million.

Applied Digital operates several data centers across the US, including a 5MW “specialized processing facility” designed to host GPUs in Jamestown, North Dakota.