TLDR: Applied Digital, formerly a cryptocurrency mining infrastructure provider, has successfully transitioned into a key player in the high-performance computing (HPC) and artificial intelligence (AI) data center market. This strategic shift is highlighted by a significant, expanded AI computing lease agreement with CoreWeave, valued at up to $11 billion, solidifying Applied Digital’s position as a premier AI infrastructure provider.
Applied Digital (NASDAQ: APLD) has undergone a remarkable transformation, evolving from its origins as a cryptocurrency mining infrastructure provider to a formidable force in the burgeoning high-performance computing (HPC) and artificial intelligence (AI) data center sector. This strategic pivot, initiated with a rebranding from Applied Blockchain to Applied Digital in 2022, underscores the company’s adaptability and foresight in recognizing the escalating demand for AI computing resources.
The cornerstone of this strategic shift is a series of long-term AI data center lease agreements with CoreWeave, an NVIDIA-backed AI infrastructure provider. Initially, these agreements covered 250 megawatts (MW) of critical IT load, projected to generate approximately $7 billion in revenue over their term. A pivotal moment occurred with the announcement of a significantly expanded AI computing lease agreement with CoreWeave, which has now reached up to $11 billion, further solidifying Applied Digital’s position in the AI infrastructure market. This deal has been a major catalyst for the company’s stock performance, despite mixed financial results in its fiscal fourth quarter of 2025.
Financially, Applied Digital has bolstered its position by raising $268.9 million through stock sales. In its fiscal fourth quarter of 2025, the company reported a 41% increase in revenues year-over-year, reaching $38 million. While the company reported a net loss, its non-GAAP earnings per share of -$0.03 significantly beat analyst expectations. The company’s product and service evolution clearly reflects this strategic shift, moving from primarily crypto hosting to supplying infrastructure for AI workloads and high-performance computing.
Applied Digital’s growth trajectory is defined by its aggressive expansion in the AI and HPC infrastructure market. The company is focused on the rapid deployment and operationalization of additional capacity for CoreWeave, with the first 100 MW facility at Polaris Forge 1 expected to be operational in Q4 2025, and further facilities planned for mid-2026 and 2027. The company’s Polaris Forge 01 campus in North Dakota is strategically located with access to stranded power, a cool climate for free cooling, and a Power Usage Effectiveness (PUE) of 1.18, which helps reduce operational costs and aligns with sustainability goals.
Furthermore, a $5 billion perpetual preferred equity financing with Macquarie Asset Management highlights Applied Digital’s ability to scale. By retaining 85% ownership of its assets while generating a 12.75% annual dividend for Macquarie, the company has created a capital-efficient model that balances growth with financial flexibility. This structure allows Applied Digital to develop over 2 GW of HPC capacity, including the 400MW Ellendale campus, which is purpose-built for NVIDIA GPUs and liquid-cooled infrastructure, essential for the high computational density and energy efficiency demanded by AI workloads.
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This strategic pivot by Applied Digital is part of a broader trend where former Bitcoin mining firms are repurposing their infrastructure into AI data centers. Their existing expertise in massive electrical capacity, efficient cooling systems, low-latency fiber, and automation uniquely positions them to succeed in the growing AI infrastructure economy. This shift is transforming former energy-intensive mining regions into AI infrastructure hubs, regional training centers, and high-tech job creators.
