Why Did Applied Digital Stock Plummet This Week?
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BTCCSquare news:
Shares of Applied Digital (APLD) tumbled 13.1% this week, starkly underperforming broader market gains. The selloff followed news of a 150MW lease expansion with CoreWeave—a deal that theoretically boosts contracted revenue to $11 billion over 15 years. Yet investors balked at execution risks.
The company now faces a capital-intensive sprint to build three new data centers amid elevated borrowing costs. With a market cap of just $3.6 billion, the gap between promised revenues and present financing capacity looms large. Debt accumulation or equity dilution appear inevitable.
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