Applied Digital disclosed $36 billion in committed leases and $2 billion annual net operating income, shifting entirely from crypto mining to AI data center business.

Applied Digital has transitioned from cryptocurrency mining to operating AI-focused data centers, securing $36 billion in long-term lease contracts over 15 years. The company generates $2 billion in annualized net operating income and is rapidly expanding its capacity through 2028.

A potential $5 billion investment from Macquarie and a 97% stake in ChronoScale support growth and asset value, though challenges in monetizing these assets remain. The stock carries execution risks and sensitivity to hyperscaler capital expenditures, warranting a Hold rating despite visible cash flows.