Applied Digital Corp. Sees 31% Surge on Expanded Multi-Billion Contract with CoreWeave.

Applied Digital Corp. (APLD) stock surged 31% to $13.14 on Thursday after announcing an expanded lease agreement with CoreWeave Inc. (CRWV) worth some $11 billion. The deal includes an additional 150 MW of critical IT load, bringing the total capacity to 400 MW. The new load is expected to raise Applied Digital Corp.'s revenues by another $4 billion. The company's net loss narrowed by 16% in Q4, while total revenues increased by 41% YoY.

Applied Digital Corp. (APLD) stock surged 31% to $13.14 on Thursday following the announcement of an expanded lease agreement with CoreWeave Inc. (CRWV). The deal, worth approximately $11 billion, includes an additional 150 MW of critical IT load, bringing the total capacity to 400 MW. This new load is expected to raise Applied Digital Corp.'s revenues by an additional $4 billion. The company's net loss narrowed by 16% in Q4, while total revenues increased by 41% year-over-year (YoY).

The expanded lease agreement is part of a long-term partnership between Applied Digital and CoreWeave. The initial 250 MW lease, signed in June 2025, was expected to generate approximately $7 billion in contracted revenue over the 15-year term. With the additional 150 MW capacity, the total contracted revenue is now projected to reach approximately $11 billion [1].

The Ellendale, North Dakota, data center campus, dubbed Polaris Forge 1, is designed to host 400 MW of critical IT load and has the potential to scale up to 1 gigawatt. The first 100 MW facility is expected to be operational by the end of 2025, with the second 150 MW facility scheduled to come online by mid-2026 [2].

The company's financial results for the fiscal fourth quarter and fiscal year ended May 31, 2025, showed revenues of $38.0 million and $144.2 million, respectively, up 41% and 6% YoY. The net loss attributable to common stockholders narrowed from $26.6 million to $161.0 million, a 16% decrease [3].

Applied Digital's strategic focus on high-performance computing (HPC) and artificial intelligence (AI) infrastructure is evident in its recent growth and the expanded lease agreement with CoreWeave. The company's Polaris Forge 1 campus is purpose-built for AI and HPC, combining massive power capacity with rapid deployment and low water consumption [2].

References:
[1] https://finance.yahoo.com/news/applied-digital-apld-announced-signing-185304463.html
[2] https://www.datacenterdynamics.com/en/news/coreweave-signs-on-for-another-150mw-of-capacity-at-applied-digital-data-center-campus/
[3] https://ir.applieddigital.com/news-events/press-releases/detail/126/applied-digital-reports-fiscal-fourth-quarter-and-full-year