ChainCatcher reports that, according to CoinDesk, Applied Digital (APLD), a Bitcoin mining hosting and cloud services company, saw its stock price drop by 30% on Tuesday to around $3.90 in early trading, as the company's quarterly profit report was nearly 18% below analyst expectations.
The company reported quarterly revenue of $52.9 million, with its cloud services division performing particularly poorly, experiencing a significant quarter-on-quarter revenue decline of 36%, dropping from $27.7 million in the previous quarter to $17.8 million.Applied Digital attributed this decline to the transition from single-tenant contracts to a multi-tenant, on-demand GPU model, which faced technical challenges in the initial phase of transformation.
The company's board approved a plan to sell its cloud services business on April 10, aiming to refocus on its core HPC data center operations and potentially position itself as a Real Estate Investment Trust (REIT) in the future.
