Headquartered in Dallas, Texas, Applied Digital Corporation (Ticker: APLD) is growing

 

Applied Digital: Investor Report

Company Overview

• Name: Applied Digital Corporation (Ticker: APLD)
• Industry: Technology Infrastructure, High-Performance Computing (HPC), Artificial Intelligence (AI)
• Headquarters: Dallas, Texas
• Website: www.applieddigital.com

Foundation and Public Offering

• Founded: Applied Digital Corporation was founded in 2001.
• Initial Public Offering (IPO): Applied Digital went public on April 12, 2022, under the ticker symbol APLD on the Nasdaq stock exchange.

Technology Reach

Applied Digital focuses on building next-generation, energy-efficient data centers designed to support high-performance computing (HPC), artificial intelligence, and blockchain applications. Their main business revolves around providing infrastructure solutions that support computationally intensive workloads, such as AI training, deep learning, and machine learning models.

The company leverages advanced cooling techniques and green energy to lower operational costs, making it highly appealing to industries needing scalable computing power, such as:

• Artificial Intelligence (AI)
• Machine Learning (ML)
• Data Analytics
• Blockchain
• Metaverse-related computing
• Cloud Services

Partnerships and Customers

While specific partnerships may not always be publicly disclosed, Applied Digital has developed relationships with key players in the AI and blockchain sectors. Some notable partnerships and customer relationships include:

• Marathon Digital Holdings (MARA): Marathon, one of the largest bitcoin mining operations, has partnered with Applied Digital for hosting services. This strategic partnership aligns with Applied Digital’s blockchain infrastructure and high-performance computing capabilities.

• Strategic Hosting Customers: The company provides data center hosting services to various enterprises, including those working in blockchain and AI.

• NVIDIA: Applied Digital uses advanced GPU technology, like NVIDIA chips, in its data centers to facilitate AI and machine learning workloads.

Applied Digital has not officially announced partnerships with other well-known technology giants like Google, Microsoft, or Amazon Web Services (AWS), but they are positioning themselves as infrastructure partners for AI and HPC companies.

Financials

As of the most recent financial reports (2023):

• Market Cap: Approximately $550 million (as of Q4 2023).
• Revenue: For the fiscal year 2023, Applied Digital reported revenue growth largely driven by hosting services and AI infrastructure needs. The company is expected to achieve revenue of $45-50 million by the end of FY 2023, marking a significant year-over-year increase.
• EBITDA: The company expects positive EBITDA for 2024 as operations scale with new data centers.
• Balance Sheet: The company has a strong balance sheet with manageable debt and is focusing on expanding its facilities to meet growing AI demand.

Key Financial Metrics (as of Q3 2023):

• Revenue Growth: 150% YoY growth
• Gross Margin: Improving as new facilities come online
• Cash Reserves: Strong liquidity position, allowing for expansion and operational improvements
• CapEx: Significant capital expenditures due to the ongoing construction of new data centers

Growth Prospects

1. High-Performance Computing and AI Demand:

• The global AI boom is driving significant demand for HPC infrastructure. Applied Digital is positioning itself to provide the computing power necessary for AI-driven companies, particularly for deep learning, neural networks, and autonomous technologies.
• With the rise of generative AI and large language models, the company is well-positioned to capture new customers and accelerate growth.

2. Data Center Expansion:

• Applied Digital has been rapidly expanding its data center footprint, with ongoing projects across the U.S. that are strategically located to capitalize on cheap energy and optimal climate conditions for cooling. These next-gen data centers are designed to handle the needs of companies involved in AI, metaverse applications, and blockchain technology.
• The company is expanding its total hosting capacity by adding facilities capable of handling Exascale workloads, boosting their ability to attract high-tech clients in the AI and blockchain sectors.

3. Blockchain Infrastructure:

• In addition to AI, Applied Digital is a key player in the blockchain infrastructure market. Their data centers are optimized to support the growing demand for blockchain hosting services, which is anticipated to be a major revenue driver in the future.
• Strategic partnerships with blockchain and bitcoin mining companies, such as Marathon Digital, solidify their position in this sector.

4. Energy Efficiency Focus:

• The company’s ability to leverage green energy and innovative cooling technologies enables them to reduce costs, positioning them competitively in the industry. This focus on sustainability is a critical component of their long-term growth prospects as customers look to decrease their carbon footprint.

5. Strategic Acquisitions:

• Applied Digital is open to future acquisitions of complementary companies in the AI and cloud computing sectors. This strategy could enable them to rapidly scale their operations and add new services.

Operations

Applied Digital's core operational focus is on building, owning, and operating data centers optimized for high-performance workloads. Their data centers are equipped to handle:

• AI model training and inference workloads
• Blockchain mining
• Cloud services
• Real-time data processing

Key Operations Highlights:

• Location Advantage: Facilities are located in regions with abundant low-cost energy, such as Texas and North Dakota.
• Scalability: Their data center design allows for easy scalability as demand for HPC and AI infrastructure grows.
• Energy Efficiency: Applied Digital is committed to using green energy and advanced cooling technologies to maximize efficiency, minimizing operational costs and environmental impact.

Future Facility Expansions:

• New data centers planned to come online in 2024, further expanding their AI and blockchain hosting capabilities.

Risks

• Energy Costs: Rising energy prices could impact margins, though their focus on securing low-cost energy in key regions mitigates this risk.
• Regulatory Environment: The company operates in a highly regulated environment, particularly with respect to cryptocurrency mining. Shifts in regulatory policy could affect growth in that sector.
• Competition: Applied Digital faces competition from well-established cloud computing providers like Amazon, Microsoft, and Google, who offer similar services for AI and HPC workloads.

Conclusion

Applied Digital is positioning itself as a major player in the AI infrastructure and blockchain industries, with a focus on providing the high-performance computing capabilities needed for the next generation of AI and machine learning technologies. With solid growth prospects, expanding operations, and increasing demand for their services, the company is well-positioned for long-term growth, though investors should be mindful of the risks tied to energy costs and competition.

For investors looking for exposure to the infrastructure side of AI and blockchain, Applied Digital represents a compelling opportunity.

Editor note: 

Question:  Might Elon Musk utilize this company's technology going forward?

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there are no public records or announcements indicating that Elon Musk's companies—such as xAI, Neuralink, or others—are customers or partners of Applied Digital Corp (APLD). However, considering the nature of Applied Digital's services, proximity of it's headquarters and the computational needs of Musk's ventures, it's possible that they might become customers in the future.

Potential Alignment of Services and Needs

xAI

• High-Performance Computing Needs: xAI focuses on developing advanced artificial intelligence technologies. This requires substantial computational power for training complex AI models.
• Applied Digital's Offerings: With expertise in high-performance computing (HPC) infrastructure optimized for AI and machine learning workloads, Applied Digital could meet xAI's computational requirements.

Neuralink

• Data-Intensive Research: Neuralink is developing implantable brain–machine interfaces, involving significant data collection and analysis.
• HPC Support: Applied Digital's scalable and energy-efficient HPC solutions could support Neuralink's need for processing large datasets and running sophisticated algorithms.

Considerations

• Industry Demand: The increasing demand for HPC services in AI, biotechnology, and neuroscience sectors makes a collaboration plausible.
• Strategic Fit: Applied Digital aims to expand its client base in cutting-edge technology fields, which aligns with the domains of xAI and Neuralink.
• Sustainability Focus: Musk's companies often emphasize sustainability, and Applied Digital's use of renewable energy could be an attractive factor.

Conclusion

While there is no confirmed relationship as of October 2023, the synergy between Applied Digital's services and the computational needs of Elon Musk's companies suggests a potential for future collaboration. Both parties operate at the forefront of technology and could benefit from a partnership.

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Note: For the most up-to-date information, please refer to recent company announcements or industry news sources.

Why we bought both AMD and Micron Technologies in October and the impact of the Chips Act!

We bought LAM Research Corp (LRCX) today under $70 PS - Here's why!

Often called the "Google" of Blockchain technology, "The Graph (GRT) has a unique place and usefulness in the Crypto universe!

 

If interested in blockchain technology and considering buying a useful cryptocurrency, one might consider purchasing GRT (The Graph) for several compelling reasons:

1. Fundamental Use Case:

   • Data Indexing and Querying: The Graph provides a crucial service by indexing and querying blockchain data efficiently using GraphQL. This is essential for many decentralized applications (dApps) that require real-time data from blockchains like Ethereum.

2. Wide Adoption:

   • Support from Major Projects: The Graph is used by numerous high-profile dApps and DeFi platforms, such as Uniswap, Aave, and Synthetix. This widespread adoption demonstrates its utility and reliability within the blockchain ecosystem​ (CoinTelegraph)​​ (Finbold)​.

3. Decentralization and Governance:

   • Community-Driven: The Graph operates with a decentralized model involving indexers, curators, and delegators, all incentivized through the GRT token. This model ensures the network's robustness and reliability, fostering a trust-based environment​ (CoinTelegraph)​.

4. Ecosystem Expansion:

   • Multi-Chain Support: While initially focused on Ethereum, The Graph has been expanding to support other blockchains, enhancing its interoperability and potential use cases across different blockchain ecosystems​ (Finbold)​.

5. Active Development and Community:

   • Continuous Improvement: The Graph has an active development team and community contributing to its ongoing improvement and expansion. This active engagement is crucial for the long-term viability and innovation of the platform​ (CoinTelegraph)​.

6. Investment Potential:

   • Growth Prospects: Given its fundamental role in the blockchain ecosystem and growing adoption, GRT has significant growth potential. The expansion into new blockchains and continuous feature enhancements could drive its demand and value over time.

7. Strategic Partnerships:

   • Collaborations: The Graph's partnerships with various blockchain projects and integration into many decentralized finance (DeFi) protocols indicate strong industry support and potential for future growth.

8. Market Position:

   • Established Player: As an established player in the blockchain data indexing space, The Graph holds a unique position that can be pivotal as the blockchain ecosystem continues to grow and evolve.

Considering these points, GRT represents a valuable addition to a blockchain-focused investment portfolio. It provides a utility that is integral to the operation and efficiency of many blockchain applications, making it a fundamentally strong choice for someone interested in blockchain technology.

However, as with any investment, it is essential to conduct thorough research and consider market conditions, project updates, and broader economic factors before making a decision.

Discl: Picked up some $GRT under .25c per

As of July 2024, the top ten most valuable cryptocurrencies by market capitalization are:

1. Bitcoin (BTC): The original and most valuable cryptocurrency, known for its role as a store of value and its decentralized nature. Market cap: $1.25 trillion.

2. Ethereum (ETH): Known for its smart contract functionality, Ethereum is a leading platform for decentralized applications (dApps). Market cap: $369.7 billion.

3. Tether (USDT): A stablecoin pegged to the US dollar, widely used for trading and transactions due to its stable value. Market cap: $110.9 billion.

4. BNB (Binance Coin): Utilized within the Binance ecosystem for various applications, including transaction fee discounts on the Binance exchange. Market cap: $86.79 billion.

5. XRP (Ripple): Facilitates cross-border payments and currency exchanges efficiently, used by financial institutions worldwide. Market cap: $28 billion.

6. Solana (SOL): A high-performance blockchain supporting decentralized apps and finance, known for its speed and low transaction costs. Market cap: $72 billion.

7. USD Coin (USDC): Another stablecoin pegged to the US dollar, USDC is popular for its reliability in global transactions. Market cap: $33.3 billion.

8. Cardano (ADA): A blockchain platform for smart contracts and decentralized applications, focusing on sustainability and scalability. Market cap: $16.2 billion.

9. Dogecoin (DOGE): Initially started as a meme coin, Dogecoin has gained substantial popularity and usage, particularly for tipping and charity donations. Market cap: $14 billion.

10. Polkadot (DOT): Enables interoperability between different blockchains, aiming to create a decentralized internet of blockchains. Market cap: $13 billion.

These cryptocurrencies are noted for their significant market caps and the unique functionalities they bring to the blockchain ecosystem​ (BeInCrypto)​​ (Nasdaq)​.

Do you know that one particular crypto is being called the "Google" of blockchain technology!

 "The Graph" is a legitimate and recognized tool for indexing and querying data from blockchains, functioning similarly to how Google indexes and searches the internet.

Key Points About The Graph:

1. Purpose and Functionality: The Graph is a decentralized protocol that allows for the querying and indexing of data from blockchains. It enables developers to build and publish open APIs, known as subgraphs, that applications can query to retrieve blockchain data. This capability is crucial for building decentralized applications (dApps) that require efficient and reliable access to blockchain data.

2. How It Works: The Graph uses a query language called GraphQL to allow developers to query blockchain data. Developers can define what data they want to index and how it should be queried, making it much easier to retrieve specific information from large sets of blockchain data.

3. Use Cases: The Graph is used by various decentralized applications (dApps) in the DeFi (decentralized finance) space, NFT (non-fungible token) marketplaces, and other blockchain-based projects. It simplifies the process of accessing and utilizing blockchain data, which can be cumbersome and resource-intensive without such a tool.

4. Decentralization and Incentives: The Graph operates as a decentralized network, with different participants (indexers, curators, and delegators) contributing to its operation and maintenance. These participants are incentivized with the network's native token, GRT (The Graph Token).

5. Adoption and Integration: Many high-profile blockchain projects and platforms, including Ethereum and IPFS (InterPlanetary File System), use The Graph for querying data. This widespread adoption highlights its utility and importance within the blockchain ecosystem.

 The Graph's decentralized nature, broad adoption, and utility in various blockchain applications underscore its significance and legitimacy in the space.

Which companies might benefit 

Several types of companies and projects within the blockchain and broader tech ecosystem can benefit from using The Graph. Here are some key categories and examples:

1. Decentralized Finance (DeFi) Platforms

DeFi platforms rely heavily on blockchain data for functions like tracking transactions, managing liquidity pools, and executing smart contracts.

• Uniswap: A decentralized exchange that can use The Graph to index and query liquidity pool data.
• Aave: A decentralized lending and borrowing platform that can utilize The Graph for tracking loan statuses and interest rates.

2. Non-Fungible Token (NFT) Marketplaces

NFT platforms need efficient ways to query metadata, ownership records, and transaction histories.

• OpenSea: An NFT marketplace that can use The Graph to index and query data related to NFT listings and ownership.
• Rarible: Another NFT marketplace benefiting from efficient querying of NFT metadata and transaction details.

3. Blockchain Analytics and Data Providers

Companies specializing in blockchain data analysis require robust tools for extracting and analyzing data.

• Dune Analytics: Provides blockchain data analysis and visualizations, potentially using The Graph to streamline data querying.
• Glassnode: A blockchain data and intelligence provider that could leverage The Graph for efficient data retrieval.

4. Gaming and Metaverse Platforms

Blockchain-based gaming and metaverse platforms often need to query data related to in-game assets, transactions, and user activities.

• Axie Infinity: A blockchain game that can use The Graph to index and query data on in-game assets and player transactions.
• Decentraland: A virtual world that can leverage The Graph for querying land ownership, asset transactions, and user interactions.

5. Supply Chain and Logistics

Blockchain solutions for supply chain management benefit from transparent and accessible data.

• VeChain: A supply chain platform that can use The Graph to index and query data on product origins, movements, and transactions.
• IBM Food Trust: Although more traditional, integrating The Graph could help in querying blockchain data for food traceability.

6. Identity and Authentication Solutions

Decentralized identity solutions need to manage and query identity-related data efficiently.

• Civic: A digital identity platform that can use The Graph to query identity verification data.
• uPort: Another identity management platform that could benefit from The Graph for decentralized identity data.

7. Social Networks and Content Platforms

Decentralized social networks and content platforms require robust data indexing for user content and interactions.

• Steemit: A blockchain-based social media platform that could use The Graph to query posts, comments, and user engagement data.
• Mirror: A decentralized blogging platform that can leverage The Graph for querying articles and user interactions.

8. Enterprise Blockchain Solutions

Large enterprises using blockchain for various applications can benefit from The Graph’s data querying capabilities.

• Microsoft Azure Blockchain: Businesses using Azure's blockchain services could integrate The Graph for better data management and querying.
• IBM Blockchain: Enterprises utilizing IBM's blockchain solutions can use The Graph to query transactional and logistical data.

Conclusion

The Graph's ability to efficiently index and query blockchain data makes it a valuable tool for a wide range of companies and projects across various sectors. Its decentralized nature and use of GraphQL for querying provide powerful capabilities that enhance data accessibility and utility in blockchain applications. 

The team behind The Graph sees AI as a massive opportunity. And they’re working to plug it into large language models (LLM) like ChatGPT. 

This will allow anyone to access and summarize The Graph’s data with a simple command line. This would be a massive breakthrough for searching and analyzing blockchain data.

In addition, Elon Musk's various ventures, especially X.ai, could potentially benefit from integrating with blockchain technologies for several reasons, but the extent of the benefit depends on the specific use cases and requirements of X.ai. Here are some potential areas where "The Graph" could be relevant:

1. Data Accessibility: If X.ai involves projects that need to access large amounts of decentralized data, "The Graph" could provide efficient data indexing and querying solutions. This would allow X.ai to access blockchain data quickly and reliably.

2. Interoperability: "The Graph" supports multiple blockchains, providing a bridge for cross-chain data access. If X.ai leverages data from various blockchain networks, using "The Graph" can facilitate seamless interoperability.

3. Scalability: For applications requiring high performance and scalability, "The Graph" can help manage data efficiently, ensuring that X.ai's services can handle a large volume of queries without performance degradation.

4. Decentralization: If X.ai aims to incorporate decentralized principles, leveraging a protocol like "The Graph" aligns with the ethos of decentralization by avoiding reliance on centralized data sources.

5. Smart Contracts and dApps: If X.ai involves developing or interacting with smart contracts and decentralized applications, "The Graph" can play a crucial role in querying blockchain data necessary for these applications to function properly.

While these points illustrate potential synergies, the actual benefit to X.ai will depend on how the Musk team decides to integrate blockchain technology into their projects.

 If X.ai's use cases align with the capabilities offered by "The Graph," then it is likely that there will be significant benefits. However, without specific details on the architecture and requirements of X.ai, it is speculative to determine the exact impact.

Discl: Long $GRT

As Crypto Currencies rise and begin to dominate investors thinking, Crypto Domain names are gaining popularity!

Whether you agree or disagree that Digital Assets like Crypto Currencies have value, you cannot escape the facts!

9 years ago Bitcoin was selling under $1 Dollar.

Today, (ups and downs aside) it sells around $6400!


That, my friends is an extreme jump in an investment!


As all Cryptos have increased

in price (for instance Ethereum Classic is up from a few cents to $14) Investors everywhere are wondering how they can get an edge in this new form of investing.

And, as more and more Banks and Businesses increase their Blockchain knowledge (and hire Crypto and Blockchain experts) to investigate how they can more securely transfer money and accounts worldwide, there is another avenue of Crypto investments that may have escaped the attention of mainstream investors.

  That is the area of Crypto Domain names (Web Addresses)

Namepros.com lists the top ten CryptoDomains sold Here to date!

As you can see, the domain Eth.Com lead the pack at a cool $2,000,000

As you can also see in that list, many other Crypto domains like CryptoWorld and CryptoBank sold in 6 figures!

Even the lesser Dot com domains sold in 5 figures.

Domainers have been scooping up these domains by the hundreds, because they know that the new Crypto business startups will be looking for online addresses and possibly new branding.

So, Are DomainNames.Money?

You Bet they are!!!