Applied Digital shifts from crypto mining to AI data centers with $36B in leases and $2B annual NOI.

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 is rated Hold due to visible cash flows but carries execution risks and sensitivity to hyperscaler capital expenditures.