La Rosa Holdings Secures $1.25B Financing to Pivot from Real Estate to AI Data Centers

La Rosa Holdings Pivots Hard Into AI With Billion-Dollar Backing, Triggering Sharp Stock Drop - La Rosa Holdings (NASDAQ:LRHC)

La Rosa Holdings Corp. (NASDAQ:LRHC) has secured $1.25 billion in financing commitments as it accelerates a shift into developing next-generation AI data centers, even as the stock moved lower on the announcement. The company said the fresh capital will help expand its focus beyond traditional real estate operations and into technology-driven infrastructure. The funding includes a previously disclosed $1 billion equity facility and a $250 million convertible note deal. Executives said the new backing strengthens La Rosa's ability to pursue acquisitions, form partnerships and build AI-optimized data centers designed to meet growing demand. Executives said the company will leverage its property expertise to transform or build sites suited for high-density computing, emphasizing energy efficiency and scalability. The pivot reflects the growing demand for facilities capable of supporting modern AI systems and digital operations. Also Read: FINRA Probes Pre-Deal Trading Tied To Douglas Elliman's Shelved Anywhere Bid: Report CEO Outlines Company Vision Chief executive Joe La Rosa called the move a defining moment for the organization, noting that its established PropTech foundation -- built on AI-driven tools and blockchain-enabled platforms -- positions it to compete in emerging infrastructure markets. He said the financing gives the company flexibility to accelerate execution and pursue technology-forward growth opportunities. The company plans to retain a portion of the proceeds as a reserve to respond quickly to potential acquisitions or other transactions aligned with its expansion plans. Advancing PropTech Initiatives La Rosa recently showcased new technology offerings at a major industry event, highlighting its continued investment in tools designed to enhance agent productivity and expand its digital ecosystem. The company said these developments reflect its broader effort to merge real estate innovation with next-generation tech infrastructure. Price Action: LRHC shares are trading 33.69% at $2.82 at the last check on Thursday. Read Next: Better Home (BETR) Misses Q3 Earnings, Company Eyes 'Next Chapter Of Growth Photo: Shutterstock LRHCLa Rosa Holdings Corp$2.90-31.9%OverviewDLRDigital Realty Trust Inc$160.53-2.06%EQIXEquinix Inc$798.07-1.87%IYWiShares U.S. Technology ETF$198.74-2.23%Market News and Data brought to you by Benzinga APIs

La Rosa stock surges after securing $1.25B in financing facilities By Investing.com

Investing.com -- La Rosa Holdings Corp. (NASDAQ:LRHC) stock surged 18% after the real estate and PropTech company announced it has secured up to $1.25 billion in financing facilities to fund its strategic pivot into AI data center infrastructure. The financing package includes a previously announced $1 billion equity purchase facility and a new $250 million private placement convertible note facility. La Rosa intends to use the proceeds to develop next-generation data center infrastructure for AI computing and pursue strategic acquisitions and joint ventures with technology and infrastructure partners. The company plans to leverage its real estate expertise to repurpose and develop properties into advanced data center facilities optimized for artificial intelligence workloads. This strategic shift builds upon La Rosa's PropTech foundation, which has focused on AI-driven tools and blockchain-enabled platforms for the real estate sector. "This is a defining moment for our Company," said Joe La Rosa, CEO of La Rosa. "Our strategic pivot builds on our strong PropTech foundation, which has fueled innovation in real estate through AI-driven tools and blockchain-enabled platforms." La Rosa indicated that a portion of the initial proceeds will serve as a strategic reserve to support growth opportunities, providing financial flexibility for potential acquisitions and joint ventures aligned with its AI data center strategy. Curvature Securities LLC acted as sole placement agent for the equity purchase facility, while A.G.P./Alliance Global Partners served as financial advisor. For the Note Facility, A.G.P./Alliance Global Partners acted as sole placement agent. This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.