Applied Digital reports ChronoScale stake on Form 3
Applied Digital Corp. filed a Form 3 as a more than ten percent owner of ChronoScale Corp (CHRN), reporting its initial holdings of common stock.
Rhea-AI Filing Summary
Applied Digital Corp. filed a Form 3 as a more than ten percent owner of ChronoScale Corp (CHRN), reporting its initial holdings of common stock. The filing shows 138,216,820 shares held indirectly through APLD ChronoScale HoldCo LLC and APLD Intermediate HoldCo LLC, and 1,311,407 shares held directly. Applied Digital may be deemed to have beneficial ownership of these securities but expressly disclaims beneficial ownership except to the extent of its pecuniary interest.
Positive
- None.
Negative
- None.
Insider Trade Summary
2 transactions reported
Mixed
2 txns
Insider
Applied Digital Corp.
Role
10% Owner
| Type | Security | Shares | Price | Value |
|---|---|---|---|---|
| holding | Common Stock | -- | -- | -- |
| holding | Common Stock | -- | -- | -- |
Holdings After Transaction:
Common Stock — 1,311,407 shares (Direct);
Common Stock — 138,216,820 shares (Indirect, See Footnote)
Footnotes (1)
- F1. Shares are held directly by APLD ChronoScale HoldCo LLC, a Delaware limited liability company and a wholly owned subsidiary of APLD Intermediate HoldCo LLC, a Delaware limited liability company ("APLD Intermediate"). APLD Intermediate is a wholly owned subsidiary of the Reporting Person. As a result, the Reporting Person may be deemed to have beneficial ownership of the securities reported herein. The Reporting Person disclaims beneficial ownership of the securities except to the extent of its pecuniary interest therein, and this report shall not be deemed an admission that the Reporting Person is the beneficial owner of the securities for purposes of Section 16 or for any other purpose.
Key Figures
Indirect CHRN holdings: 138,216,820 shares
Direct CHRN holdings: 1,311,407 shares
Ownership status: More than ten percent owner
3 metrics
Indirect CHRN holdings
138,216,820 shares
Common stock held indirectly following the reported position
Direct CHRN holdings
1,311,407 shares
Common stock held directly following the reported position
Ownership status
More than ten percent owner
Applied Digital’s reporting status for ChronoScale common stock
Key Terms
ten percent owner, beneficial ownership, pecuniary interest, Section 16, +1 more
5 terms
ten percent owner financial
"As a more than ten percent owner of the Issuer's common stock"
beneficial ownership financial
"may be deemed to have beneficial ownership of the securities reported herein"
Beneficial ownership means the person or entity that actually enjoys the benefits of owning shares or other assets — such as receiving dividends, voting rights, or price gains — even if the legal title is held in another name. For investors it matters because knowing who truly controls and profits from a company reveals who can influence decisions, exposes potential conflicts of interest or hidden concentration of power, and affects transparency and risk in the stock.
pecuniary interest financial
"disclaims beneficial ownership of the securities except to the extent of its pecuniary interest therein"
Section 16 regulatory
"for purposes of Section 16 or for any other purpose"
Section 16 is a U.S. securities law rule that governs the trading and disclosure obligations of company insiders — typically officers, directors and large shareholders — to promote transparency and deter unfair profit-taking. It requires insiders to publicly report their stock trades and allows companies or the issuer to reclaim quick, short-term profits from certain insider trades, like a scoreboard and a refund policy that help investors see and limit possible insider advantage.
indirect ownership financial
"Shares are held directly by APLD ChronoScale HoldCo LLC ... a wholly owned subsidiary"
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
What did Applied Digital report in its ChronoScale (CHRN) Form 3?
Applied Digital reported its status as a more than ten percent owner of ChronoScale common stock. The Form 3 lists both indirect holdings through controlled entities and direct holdings, establishing its initial beneficial ownership position under Section 16 reporting rules.
How is Applied Digital’s indirect ownership in ChronoScale (CHRN) structured?
The filing states shares are held by APLD ChronoScale HoldCo LLC, a wholly owned subsidiary of APLD Intermediate HoldCo LLC. APLD Intermediate is wholly owned by Applied Digital, meaning control flows through these Delaware limited liability companies to the underlying ChronoScale common stock.
Why is Applied Digital classified as a more than ten percent owner of ChronoScale (CHRN)?
The Form 3 checks Applied Digital as a more than ten percent owner of ChronoScale common stock. This classification reflects the large reported holdings and triggers initial Section 16 reporting, even though Applied Digital disclaims beneficial ownership beyond its economic interest in the securities.
AI-generated analysis. How Rhea-AI works. Not financial advice.
