APLDNasdaqServices-Computer Processing & Data PreparationUS GAAP · USD

Applied Digital Corp.

Applied Digital Corp. designs, develops, and operates next-generation data center infrastructure in North America, with a focus on high-power computing workloads. The company currently runs two operating businesses: blockchain data center hosting for crypto mining customers and HPC data center hosting for AI and high-performance computing customers. It is also exiting its Cloud Services Business, which has been classified as held for sale and reported as discontinued operations. The business is concentrated in North Dakota today, where it is building large-scale, power-dense campuses intended to support GPU-intensive AI workloads and other demanding compute applications.

Ask about the company
Revenue611m USD
+167.5 %y/y
Operating profit (EBIT)-236m USD
−1,303.8 %y/y
EBIT margin-38.7%
−31.3 ppy/y
Net income-184m USD
+20.2 %y/y

Fiscal year 2026 · change from previous year

Development 2021–2026

-400-2000200400600800m USD2021: 0.00 m USD2021: EBIT -0.33 m USD20212022: 8.5 m USD2022: EBIT -21 m USD20222023: 55 m USD2023: EBIT -44 m USD20232024: 166 m USD2024: EBIT -99 m USD20242025: 229 m USD2025: EBIT -17 m USD20252026: 611 m USD2026: EBIT -236 m USD2026611-236
RevenueOperating profit (EBIT)
Ask Clarifo about Applied Digital Corp.

Business

Share of revenue
Data Center Hosting70 %

Energized infrastructure and leased capacity for crypto mining and compute customers.

HPC Hosting25 %

Purpose-built facilities and services for AI and high-performance computing workloads.

Tenant Fit-Out and Build Services5 %

Construction-related services and build-out work tied to new HPC facilities.

Customers

The company sells primarily to a very small number of large customers rather than a broad base of end users. In its blockchain hosting business, it serves crypto mining customers that need reliable, energized space and power access. In its HPC hosting business, it targets customers running AI and high-performance computing workloads that require high power density and purpose-built facilities. The company also references enterprises, cloud service providers, network service providers, and digital economy customers as the broader customer ecosystem it wants to attract to its data centers. Customer concentration is material, so the loss or downsizing of even one customer can have an outsized effect on revenue and utilization.

Crypto mining customers

Buy energized hosting space and power capacity for mining equipment; this is the current revenue base of the blockchain hosting business.

AI and HPC customers

Buy purpose-built data center capacity and fit-out services for GPU-intensive workloads; this is the company’s main growth platform.

Enterprise and cloud service providers

Potential tenants for interconnection-rich or compute-heavy facilities that need scalable infrastructure and reliability.

Network service providers

Use data center ecosystems for connectivity and colocation adjacency, helping improve facility density and attractiveness.

Digital economy customers

Broader set of technology-enabled customers that may lease space or services as the company expands its HPC footprint.

Strategy

The company is shifting its center of gravity from blockchain hosting toward HPC and AI infrastructure, where it expects stronger long-term demand. It is investing heavily in Polaris Forge 1 in Ellendale, including large 100 MW and 150 MW buildings designed for high power density GPUs. Management is also pursuing vertical integration into power assets, including potential generation assets that could lower long-term power costs and improve control over supply. At the same time, the company is trying to improve liquidity and funding access because construction spending and operating losses remain significant while the new HPC campus ramps.

Build out Polaris Forge 1 HPC campusShort term

The company expects meaningful revenue only after the first building becomes operational, making execution on construction and energization central to growth.

Expand into AI and high-performance computing hostingMedium term

HPC and AI are the intended long-term growth engines and should diversify the business away from crypto mining exposure.

Improve power economics through vertical integrationMedium term

Power is a major cost driver in data center hosting, so owning or controlling power assets could improve margins and resilience.

Secure financing for continued expansionShort term

The company has ongoing losses and heavy capital needs, so access to debt and equity funding is necessary to complete projects and sustain operations.

Geography

Applied Digital is a U.S.-based operator with its current continuing operations concentrated in North Dakota. Its blockchain hosting sites are in Jamestown and Ellendale, while its main HPC buildout is the Polaris Forge 1 campus in Ellendale. The company also operated a Cloud Services Business in Colorado, Minnesota, and Utah, but that business is now classified as discontinued operations and is being sold. Geography matters because the business depends on access to large power loads, suitable land, and local permitting, while also exposing the company to regional power pricing and infrastructure constraints.

Risks

Applied Digital faces high customer concentration risk because a small number of customers account for most of its revenue, making results sensitive to contract renewals, usage levels, and customer financial health. The company is also still in an early development phase and has not yet proven that its HPC expansion can generate stable profits at scale. Construction, power availability, and financing risk are material because the business requires large upfront capital spending before revenue ramps. More broadly, data center operators face cyber, regulatory, power-cost, and competitive risks, and Applied Digital is exposed to all of these while competing against larger and better-capitalized peers.

Sorted by severity
LowMediumHighLowMediumHighImpact →Likelihood →Customer concentration1Capital funding and liquidity risk2Execution risk on HPC campus buildout3Power cost and supply risk4Competitive pressure5Cybersecurity and operational disruption6
Impact is the risk’s severity and likelihood how probable it is over the next few years, both assessed from the company’s reports. Numbers match the list.
  1. Customer concentrationImpact: CriticalLikelihood: High

    The company currently serves one crypto mining customer in the blockchain business and one customer in HPC, so the loss or downsizing of either customer would materially affect revenue and cash flow.

    Exposure: Data Center Hosting Business and HPC Hosting Business

  2. Capital funding and liquidity riskImpact: HighLikelihood: High

    The company is funding large construction projects while still reporting losses, so it depends on debt, equity, and capital market access to continue expansion.

    Exposure: Construction and working capital needs

  3. Execution risk on HPC campus buildoutImpact: HighLikelihood: Medium

    Revenue growth depends on completing and energizing Polaris Forge 1 on schedule and at acceptable cost.

    Exposure: Polaris Forge 1 in Ellendale

  4. Power cost and supply riskImpact: HighLikelihood: Medium

    Data center economics are highly sensitive to electricity pricing and access to reliable power, which directly affects hosting margins.

    Exposure: North Dakota facilities and future sites

  5. Competitive pressureImpact: MediumLikelihood: High

    The company competes with larger operators such as Digital Realty, Equinix, and NTT that have broader scale, stronger balance sheets, and more market reach.

    Exposure: U.S. data center hosting market

  6. Cybersecurity and operational disruptionImpact: MediumLikelihood: Medium

    The business relies on complex information systems and customer-facing infrastructure, making outages or breaches potentially costly and reputationally damaging.

    Exposure: Data center operations and cloud infrastructure

Ask Clarifo about Applied Digital Corp.

Accounting

Judgemental items
Revenue recognition across multiple service types

Hosting, rental, and tenant fit-out revenues may be recognized at different times, affecting reported growth and quarterly comparability.

Impact: Can shift revenue between periods depending on energization and contract milestones

Fair value measurements of derivative assets

Derivative valuations depend on market inputs and assumptions, which can create non-cash gains or losses.

Impact: May add volatility to reported earnings

Discontinued operations for Cloud Services Business

Results from the sold or held-for-sale business are excluded from continuing operations, changing trend analysis.

Impact: Affects revenue and margin comparability across periods

Capitalized construction and depreciation

Large data center projects require significant property and equipment investment before revenue begins, so capitalization and depreciation timing matter.

Impact: Influences asset base, depreciation expense, and future margins

Similar listed companies

Publicly listed companies with a comparable business focus.

Applied Industrial Technologies, Inc

AIT · Wholesale-Machinery, Equipment & Supplies

Bit Digital, Inc

BTBT · Finance Services

Applied Energetics, Inc.

AERGP · Search, Detection, Navigation, Guidance, Aeronautical Sys

New ERA Energy & Digital, Inc.

NUAIW · Crude Petroleum & Natural Gas

Riot Platforms, Inc.

RIOT · Finance Services

Edgemode, Inc.

EDGM · Services-Home Health Care Services

Last updated: 24/09/2026