Applied Digital Corporation (APLD) saw its stock price plummet by 10.57% in intraday trading on Tuesday, following the announcement of a significant increase in its Series G Convertible Preferred Stock commitment. The company entered into a fourth amendment to its Preferred Equity Purchase Agreement, raising the aggregate commitment from $590 million to $1.59 billion.

The amendment includes several key changes to the agreement. The maximum put issuance amount has been set at $75 million per issuance, with a limit of one issuance per seven business days. Additionally, the maximum aggregate stated value of Series G Preferred Stock outstanding at any time has been capped at $75 million. Notably, the original discount was increased from 2% to 3%, while the placement agent fee was eliminated.

The sharp decline in Applied Digital's stock price suggests that investors may be concerned about potential dilution or the company's need for additional capital. This reaction comes amid a broader downturn in Nvidia concept stocks, with several AI-related companies experiencing losses. The negative sentiment in the AI sector may have further amplified the selling pressure on APLD, contributing to its significant drop.