NasdaqGS:APLDIT
Applied Digital Faces CoreWeave Dependence And Contract Risks For Future Revenue
Applied Digital (NasdaqGS:APLD) faces material risk from heavy reliance on a single major tenant, CoreWeave, for a substantial share of its future revenue.
CoreWeave is currently unprofitable and highly leveraged, which raises concerns about its long term ability to meet multi year commitments.
Many of Applied Digital’s leases include termination clauses that allow tenants to walk away without penalty if construction milestones are not met.
The company has taken on a large amount of debt...