Shares of bitcoin mining custody and Cloud as a Service company Applied Digital (APLD) fell 30 percent Tuesday after the company's quarterly earnings report missed analysts' expectations by nearly 18 percent, trading around $3.90 in early trading.
The company reported revenue of $52.90 million for the quarter, and its Cloud as a Service division performed particularly poorly, with revenue down 36% quarter-over-quarter to $17.80 million from $27.70 million in the previous quarter. Applied Digital attributed the decline to the shift from single-tenant contracts to a multi-tenant, on-demand GPU model - a transition that faced technical challenges early on.
The company's board of directors on April 10 approved a plan to sell the Cloud as a Service business, with the aim of refocusing on its core HPC data center operations and possibly positioning itself as a real estate investment trust (REIT) in the future.
Applied Digital shares fall 30% on lower-than-expected revenue, plans to sell cloud computing unit
2025-04-15 15:39:14
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