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Applied Blockchain Inc (NASDAQ:APLD), currently valued at $2.52 billion, maintained its market position after CoreWeave sold its entire 5.5% stake in the company, according to a Schedule 13G filing from June 12, 2025. The stock has shown significant volatility, dropping 14.13% in the past week. InvestingPro analysis reveals 16+ additional insights about APLD’s market performance and financial health. The filing revealed that CoreWeave held 0.0% of Applied Blockchain’s shares outstanding as of June 10, 2025.
The sale follows CoreWeave’s recent receipt of warrants for approximately 5.5% (13 million shares) of Applied Blockchain’s shares outstanding with a strike price of $7.19. These warrants were issued in conjunction with the $7 billion, 15-year lease agreement to supply space and power to CoreWeave. With a current ratio of 0.7, InvestingPro data indicates the company’s short-term obligations exceed its liquid assets.
JMP analyst Greg Miller reiterated a Market Outperform rating and $18.00 price target on Applied Blockchain Monday, representing the highest among analyst targets ranging from $12 to $18. The analyst noted that the warrants were likely issued to incentivize the deal between the two companies. Get comprehensive analysis and detailed financial metrics with a InvestingPro subscription.
An additional 3% of warrants (approximately 2% for every 100 MW) could potentially be issued at a strike price yet to be determined. This would occur if CoreWeave exercises its option for the remaining 150 MW at Applied Blockchain’s 400 MW Ellendale, ND campus.
CoreWeave, which has a Market Perform rating from JMP, completed the stake sale shortly after finalizing the substantial lease agreement with Applied Blockchain that spans a 15-year period.
In other recent news, Applied Digital Corporation has announced a significant $7 billion deal with CoreWeave for its upcoming AI data center in Ellendale, North Dakota. The agreement involves two long-term lease contracts, providing CoreWeave with 250 megawatts (MW) of IT load over approximately 15 years. This development is projected to significantly boost Applied Digital’s revenue trajectory, particularly by the end of fiscal 2026, with expectations of generating nearly $60 million in revenue from the first 150 MW. The first phase of the project is anticipated to be operational by late 2025, with the second phase following by mid-2026.
In light of these developments, analysts have adjusted their price targets for Applied Digital. H.C. Wainwright raised their price target from $7 to $12, maintaining a Buy rating, while Citizens JMP increased their target from $12 to $18, with a Market Outperform rating. The analysts highlighted the strategic importance of the CoreWeave deal in supporting Applied Digital’s growth and stabilizing its stock valuation.
Additionally, the Ellendale campus is set to be one of the most significant data center projects in North America, designed for high-density computing and scalable up to 1 gigawatt. Applied Digital aims to leverage the energy-efficient climate and strategic location to meet the growing demands of AI and high-performance computing sectors.
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