Applied Digital’s 3.16% Drop on 416th-Highest Nasdaq Volume Amid $300M Capital Raise

Applied Digital (NASDAQ:APLD) closed August 15, 2025, with a 3.16% decline, trading at $12.50 per share as 0.25 billion shares changed hands—the 416th highest volume on the Nasdaq. The stock's recent performance follows a 260% surge over the past year, though liquidity constraints persist with a current ratio of 0.77.

The company announced an expanded $300 million Series G convertible preferred stock offering, doubling the original commitment to accelerate development of its Polaris Forge I data center in North Dakota. The revised agreement eliminates a prior $75 million per-issuance cap and raises the conversion floor price from $4.25 to $12.50. These adjustments, filed with the SEC, aim to secure capital for infrastructure expansion while maintaining regulatory exemptions under Section 4(a)(2) of the Securities Act.

Fourth-quarter financials revealed a -$0.03 EPS beat against estimates of -$0.14, though revenue fell short at $38 million versus $42.07 million. Analysts at Craig-Hallum upgraded their price target for Applied Blockchain Inc to $18, citing a 150MW expansion as a catalyst. The firm retains a "Buy" rating despite the stock's recent volatility.

A strategy of holding the top 500 Nasdaq stocks by daily volume for one day from 2022 to 2025 yielded a cumulative return of 108%. Total profits reached $10,720, reflecting modest gains amid market fluctuations. The approach underscores trading volume as a key metric for identifying short-term opportunities in high-liquidity equities.