Applied Digital Stock Price, News & Analysis

Applied Digital Corporation (NASDAQ: APLD) operates in the data processing, hosting, and related services industry, with a focus on high-performance computing and artificial intelligence infrastructure. According to company disclosures and recent press releases, Applied Digital designs, builds, and operates high-performance, sustainably engineered data centers and colocation services that support artificial intelligence, cloud, networking, and blockchain workloads. The company is headquartered in Dallas, Texas and was founded in 2021.

Applied Digital describes itself as a designer, builder, and operator of next-generation digital infrastructure across North America. It provides digital infrastructure solutions and cloud services to industries such as high-performance computing (HPC) and artificial intelligence (AI). The business operates through at least two primary segments: a Data Center Hosting Business and an HPC Hosting Business. The Data Center Hosting Business operates data centers that provide energized space to Bitcoin and crypto mining customers, while the HPC Hosting Business designs, builds, and operates next-generation data centers that provide computing power for HPC applications.

Core business segments

In its Data Center Hosting Business, Applied Digital operates facilities in Jamestown, North Dakota and Ellendale, North Dakota. The company reports that as of a recent period, a 106 MW facility in Jamestown and a 180 MW facility in Ellendale were operating at full capacity, generating revenue by providing energized space to crypto mining customers. This segment has produced segment operating profit and is described as contributing meaningfully to overall revenue.

In its HPC Hosting Business, Applied Digital focuses on large-scale, purpose-built data centers that support AI and HPC workloads. The company reports that operations commenced at its first HPC data center at the Polaris Forge 1 campus with 100 MW of capacity and that additional 150 MW facilities at the same campus are under construction or anticipated. The HPC Hosting Business generated revenue from tenant fit-out services and rental revenues as buildings at Polaris Forge 1 reached Ready-for-Service milestones.

AI Factory campuses and hyperscaler relationships

A central element of Applied Digital’s strategy is its development of large AI-focused data center campuses referred to as Polaris Forge AI Factories. The company highlights Polaris Forge 1, a 400 MW AI Factory campus in Ellendale, North Dakota, and Polaris Forge 2, a 200 MW AI Factory campus near Harwood, North Dakota, with expansion potential.

Applied Digital reports long-term lease agreements with hyperscale customers at these campuses. At Polaris Forge 1, the company has fully contracted 400 MW of capacity under long-term leases with CoreWeave, which it describes as an AI Factory buildout. At Polaris Forge 2, Applied Digital has announced an approximately 15-year lease with a U.S.-based investment-grade hyperscaler for 200 MW of AI and HPC capacity. Management commentary and filings indicate that these leases are expected to generate substantial prospective lease revenue over their terms.

The company emphasizes its ability to deliver large-scale capacity on schedule. It has announced Ready-for-Service milestones at Polaris Forge 1, including the full energizing of the first 100 MW building at that campus. These milestones are presented as evidence of Applied Digital’s execution in constructing complex, high-density data centers for AI workloads.

Technology, cooling, and infrastructure approach

Applied Digital describes its data centers as high-performance and sustainably engineered. Public statements note the use of proprietary waterless cooling and rapid deployment capabilities to deliver secure, scalable compute with an emphasis on speed and efficiency. The company also highlights investments and partnerships intended to support advanced power and cooling infrastructure, including an investment in Babcock & Wilcox for power and thermal infrastructure and a lead investment in Corintis, a developer of direct-to-chip liquid cooling technology for high-density AI workloads.

Through these investments and its own engineering, Applied Digital positions its AI Factories as purpose-built for ultra-high-performance compute, with cooling and power systems designed to support GPU-based systems and dense AI and HPC workloads. The company also notes that its approach aims to reduce pressure on local utilities and improve energy efficiency.

Capital structure and financing model

Applied Digital’s growth strategy involves significant project financing and preferred equity arrangements tied to its AI Factory campuses. The company has entered into a perpetual preferred equity financing facility of up to $5.0 billion with Macquarie Asset Management, which is intended to fund AI Factory projects such as Polaris Forge 1 and Polaris Forge 2. Under this framework, Macquarie Asset Management may provide preferred equity capital when leases with investment-grade hyperscalers are executed, allowing Applied Digital to retain a majority common equity ownership in each site while limiting the need to raise capital in public markets.

In addition, Applied Digital has completed a $2.35 billion private offering of 9.25% senior secured notes due 2030 through its subsidiary APLD ComputeCo LLC. An 8-K filing and related press releases describe that the proceeds are allocated to construction and associated expenses for 100 MW and 150 MW data centers (ELN-02 and ELN-03) at Polaris Forge 1, repayment of prior loans, and funding of debt service reserves. The notes are senior secured obligations with covenants and amortization schedules described in the Indenture filed with the SEC.

The company has also entered into a development loan facility with Macquarie Group’s Commodities and Global Markets business to fund pre-lease sourcing, planning, and construction activities for new data center campuses. Additionally, Applied Digital has a revolving credit agreement with First National Bank of Omaha, providing further liquidity for general corporate purposes and letters of credit.

Cloud services and ChronoScale spin-out

Beyond hosting and AI Factory campuses, Applied Digital has operated a cloud services business under the Applied Digital Cloud brand. The company reports that Applied Digital Cloud has been treated as discontinued operations since a recent quarter and that it has entered into a non-binding term sheet with Ekso Bionics Holdings, Inc. for a proposed business combination. Under this proposal, Applied Digital’s cloud computing business would combine with EKSO to form ChronoScale Corporation, described as an accelerated compute platform purpose-built for AI workloads.

Applied Digital states that ChronoScale is intended to deliver GPU-based infrastructure optimized for AI training, inference, and high-performance computing, leveraging the existing Applied Digital Cloud platform. Upon closing of the proposed transaction, Applied Digital expects to own a majority of the combined company. The company presents this separation as a way to allow both the cloud compute and data center businesses to scale independently with distinct strategies and capital structures.

Corporate governance and equity structure

Applied Digital is incorporated in Nevada and trades on the Nasdaq under the ticker symbol APLD. SEC filings describe amendments to its equity incentive plans and capital structure. For example, the company’s stockholders approved an amendment to its 2024 Omnibus Equity Incentive Plan to increase the number of shares authorized for issuance, and the company filed a Certificate of Amendment to increase the number of authorized shares of common stock.

The company has also established a series of preferred stock designations, including Series G Convertible Preferred Stock, with related amendments to floor prices and authorized share counts. These preferred equity instruments and associated purchase agreements are used to raise capital for data center development, particularly at Polaris Forge 1 and Polaris Forge 2. Applied Digital has also issued warrants to affiliates of Macquarie Asset Management in connection with its preferred equity partnership, with registration rights for the underlying common shares.

Recognition and operating philosophy

Applied Digital notes that it has been named “Best Data Center in the Americas 2025” by Datacloud. The company emphasizes its hyperscale expertise, proprietary waterless cooling, and rapid deployment capabilities as core attributes of its platform. It also highlights a focus on creating economic opportunities in underserved communities through its Polaris Forge AI Factory model.

In addition to infrastructure and financing, Applied Digital references community initiatives such as Applied Digital Cares, which provides grants to support education, health, innovation, and local community development in areas where it operates. The company also describes itself as prioritizing responsible development and grid management, including investments that support power and thermal infrastructure and advanced cooling technologies.

Management and leadership developments

Recent news includes the appointment of co-founder Jason Zhang as President of Applied Digital. The company states that Mr. Zhang has been instrumental in shaping its strategy and long-term growth trajectory and that he will continue to work with the Chairman and Chief Executive Officer to guide the company’s strategic direction as it scales its AI Factory platform.

Business model and revenue drivers

Applied Digital’s reported revenue comes from multiple sources within its continuing operations. The Data Center Hosting Business generates revenue by providing energized space and services to Bitcoin and crypto mining customers at its hosting facilities. The HPC Hosting Business generates revenue from tenant fit-out services and rental income associated with AI Factory leases at campuses such as Polaris Forge 1. The company has also reported revenue from its cloud services business, though that business is being separated through the proposed ChronoScale transaction.

Management commentary emphasizes that long-term leases with hyperscalers at Polaris Forge 1 and Polaris Forge 2 represent significant prospective lease revenue over the life of the contracts. The company also notes that its financing framework, including preferred equity and debt facilities, is intended to support multi-billion-dollar contracts while allowing it to retain substantial common equity ownership in project entities.

FAQs about Applied Digital (APLD)

• What does Applied Digital Corporation do?
  Applied Digital designs, builds, and operates high-performance, sustainably engineered data centers and colocation services for artificial intelligence, cloud, networking, and blockchain workloads. It also provides digital infrastructure solutions and cloud services for high-performance computing and AI.
• How does Applied Digital generate revenue?
  According to company disclosures, Applied Digital generates revenue through its Data Center Hosting Business, which provides energized space to Bitcoin and crypto mining customers, and its HPC Hosting Business, which earns revenue from tenant fit-out services and rental income at AI Factory campuses such as Polaris Forge 1. It has also reported revenue from its cloud services business.
• What are Applied Digital’s main business segments?
  The company identifies a Data Center Hosting Business and an HPC Hosting Business. The Data Center Hosting Business operates data centers for crypto mining customers, while the HPC Hosting Business designs, builds, and operates next-generation data centers that support high-performance computing applications.
• Where is Applied Digital headquartered and when was it founded?
  Applied Digital states that it is headquartered in Dallas, Texas and was founded in 2021.
• What are Polaris Forge 1 and Polaris Forge 2?
  Polaris Forge 1 and Polaris Forge 2 are AI Factory campuses in North Dakota developed by Applied Digital. Polaris Forge 1 is a 400 MW campus in Ellendale under long-term lease agreements with CoreWeave, while Polaris Forge 2 is a 200 MW campus near Harwood under a long-term lease with a U.S.-based investment-grade hyperscaler.
• How is Applied Digital involved in artificial intelligence infrastructure?
  Applied Digital builds and operates AI-focused data centers and AI Factory campuses that provide high-density, GPU-optimized infrastructure for AI and HPC workloads. It also operates a cloud business, Applied Digital Cloud, and is involved in forming ChronoScale, an accelerated compute platform for AI workloads.
• What is the ChronoScale transaction?
  Applied Digital and Ekso Bionics Holdings, Inc. have entered into a non-binding term sheet for a proposed business combination of Applied Digital’s cloud computing business with EKSO to form ChronoScale Corporation. ChronoScale is described as an accelerated compute platform purpose-built for AI workloads, with Applied Digital expected to retain a majority ownership stake upon closing.
• How is Applied Digital financing its AI Factory campuses?
  The company has a preferred equity financing facility of up to $5.0 billion with Macquarie Asset Management to fund AI Factory projects, and it has completed a $2.35 billion senior secured notes offering through a subsidiary. It has also entered into a development loan facility with Macquarie and a revolving credit agreement with First National Bank of Omaha.
• What role does sustainability play in Applied Digital’s operations?
  Applied Digital describes its data centers as sustainably engineered and highlights proprietary waterless cooling and investments in advanced cooling and power technologies. It also notes efforts to reduce pressure on local utilities and to support communities through initiatives such as Applied Digital Cares.
• Is Applied Digital still an active public company?
  Based on the provided SEC filings and recent press releases, Applied Digital continues to file reports with the SEC and is listed on Nasdaq under the ticker APLD. No delisting, deregistration, or bankruptcy filings are indicated in the supplied information.