Applied Digital Corporation designs, develops, and operates digital infrastructure focusing on HPC and AI markets in North America.

# Company Summary — Applied Digital Corporation

## Business Overview
Applied Digital Corporation is a U.S.-based designer, developer, and operator of next-generation digital infrastructure across North America, specializing in high-performance computing ("HPC") and artificial intelligence ("AI") markets.

## Business Segments
- **Data Center Hosting Business**:
  - Provides energized infrastructure services primarily to crypto mining customers.
  - Operates two facilities:
    - Jamestown, North Dakota: 106 MW capacity
    - Ellendale, North Dakota: 180 MW capacity
  - Serves one crypto mining customer with approximately 2.5 years remaining on current lease.
  - Total hosting capacity of approximately **286 MW**.
  - Revenue from continuing operations for FY2025 exclusively from this segment.

- **HPC Hosting Business**:
  - Designs, constructs, and operates data centers tailored for high-power-density applications like HPC and AI.
  - Building a Polaris Forge campus in Ellendale, North Dakota, consisting of three purpose-built data centers:
    - 100 MW data center (leased to CoreWeave, Inc.)
    - 150 MW data center (leased to CoreWeave, Inc.)
    - A third 150 MW data center
  - Under construction on these facilities with leases signed for 250 MW in total.
  - Expected to generate significant revenue once the first building becomes operational in calendar year 2025.

- **Discontinued Operations — Cloud Services Business**:
  - Provides cloud computing services for AI and machine learning developers.
  - Operates in Colorado, Minnesota, and Utah.
  - Uses third-party co-location centers with Company-owned equipment.
  - Recognized **$84.4 million** in revenue in FY2025 within discontinued operations.
  - Board approved sale plans, classifying it as "held for sale."

## Customers
- **Crypto Mining Customer**: One key customer in the Data Center Hosting segment, with a remaining lease term of 2.5 years.
- **HPC Customer**: One primary customer under lease agreements for 250 MW capacity at Polaris Forge 1.
- **Cloud Business**: Operates in three states, with customers in AI and ML sectors.

## Employees
- As of May 31, 2025:
  - Approximately **205 full-time employees**.
  - Departments include design, engineering, IT, operations, construction, finance, and marketing.
  
## Revenue and Financial Results (FY2025)
- **Total Revenue**:
  - $84.4 million from the Cloud Services Business (discontinued operations).
- **Net Loss**:
  - $(231.1) million in FY2025.
- **Market Capitalization**:
  - As of Nov 30, 2024, approximately **$1.9 billion** (market value of non-affiliate held stock).

## Additional Notes
- The company is actively expanding its HPC and AI-focused data centers.
- It has entered into multiple lease agreements and several strategic funding and equity arrangements.
- Focuses heavily on infrastructure development, supply chain management, and regulatory compliance in the U.S.
- Management has undergone leadership changes, including a new CFO and COO.
- The company is involved in several securities offerings, convertible notes, and preferred stock financings, which impact dilution and liquidity.

Applied Digital Corporation specializes in digital infrastructure, offering high-performance computing services and cryptocurrency data center hosting.

# Company Overview

## General Information
- **Name**: Applied Digital Corporation (formerly Applied Blockchain, Inc.)
- **Industry**: Digital Infrastructure, High-Performance Computing (HPC), Artificial Intelligence (AI), and Cryptocurrency Data Center Hosting
- **Founded**: Initial Public Offering in April 2022
- **Stock Exchange**: Nasdaq

## Business Segments
The company operates through three primary business segments:

### 1. Data Center Hosting Business
- **Description**: Provides energized infrastructure services tailored to crypto mining customers through custom-designed data centers.
- **Customers**: Serves **seven** crypto mining customers.
- **Contracts**: Contracts range from **three to five years**.
- **Revenue Contribution**: Accounts for approximately **83%** of the company's revenue for the fiscal year ended May 31, 2024.
- **Facilities**:
  - **Jamestown, North Dakota**: 106 MW facility
  - **Ellendale, North Dakota**: 180 MW facility
- **Total Hosting Capacity**: Approximately **286 MW**.

### 2. Cloud Services Business
- **Description**: Launched in May 2023, provides GPU computing solutions for customers, specializing in AI and machine learning applications.
- **Customers**: Currently serves **two** customers.
- **Revenue Contribution**: Accounts for approximately **17%** of total revenue in fiscal year 2024.
- **GPU Deployment**: As of May 31, 2024, has deployed **6,144 GPUs**.

### 3. HPC Hosting Business
- **Description**: Focuses on designing and managing data centers for high-performance computing applications, including AI.
- **Current Projects**:
  - Building a **7.5 MW** facility in Jamestown, ND.
  - A **100 MW** HPC data center in Ellendale, ND, with additional future expansions planned.
- **Leases and Agreements**: Has entered into an exclusivity agreement with a U.S.-based hyperscaler for a **400 MW** capacity lease.

## Financial Information
- **Revenue**: Incurred revenues of approximately **$149.3 million** for the fiscal year ending May 31, 2024.
- **Net Loss**: Recorded a net loss of approximately **$149.3 million** for FY 2024 and **$44.6 million** for FY 2023.
  
## Employee Information
- **Employees**: Approximately **150** full-time employees across various departments, including engineering, IT, operations, construction, administration, finance, and communications.

## Strategic Partnerships
- Collaborates with key suppliers including:
  - **NVIDIA Corp.**
  - **Hewlett Packard Enterprise (HPE)**
  - **Dell Technologies**
  - **Super Micro Computer Inc.**
- Engages with strategic equity investors, maintaining relationships with companies in the cryptocurrency ecosystem.

## Risk Factors
- The company faces several risks, including market volatility of cryptoassets, dependency on a few key customers, financial instability, and evolving regulatory landscapes.

Applied Digital Corp.

10-K / July 30, 2025

10-K / August 30, 2024

10-K / July 30, 2025

Company Summary — Applied Digital Corporation

Business Overview

Business Segments

Customers

Employees

Revenue and Financial Results (FY2025)

Additional Notes