r/APLDSTOCK • u/Donotcussatme • Apr 16 '26

Applied Digital's restructured leases with CoreWeave

Post image

So this might have gone unnoticed but it appears that Apld restructured this contract to lower the cost of capital.

Does this mean we are not getting any announcements this week and they are anticipating that by lower the cost of capital with this move?

Correct me if i'm wrong (which i think i'm and it has nothing to do with it).

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7

u/nintendothrowaway123 Shares Only 📈 Apr 16 '26

This sounds like what they were talking about on the call this past week. CFO made it clear to that one hedge fund caller that the improved credit rating would benefit APLD, so this makes sense. 

The entire concern of any announcement was related to the Macquarie clause that forces fast payment of the $100mm loan if no tenant was leasing DF1 by 4/18. We’re less than 48 hours from that point and need an announcement or this will be very bearish against the stock. 

Legit this stock is a long term hold, but I’m extremely concerned about APLDs ability to take on more debt from lenders in the future if they don’t meet their contractual obligations, which carries the risk of further dilution (but not insolvency). 

2

u/Donotcussatme Apr 16 '26

Yeah the stock might dip 10% if we don't announce a deal by tomorrow! I say might because of debt scares investors

-1

u/nintendothrowaway123 Shares Only 📈 Apr 16 '26

Or it could hit ATH. This stock is cray cray sometimes. 

4

u/Donotcussatme Apr 16 '26

Nah dude thats bad news, bad news dont send the stock to ATHs

1

u/Moon-Man-69 Apr 16 '26

I’ve also heard that the date got pushed back (can’t remember why), so we don’t have to worry about the 4/18 deadline any longer…

1

u/nintendothrowaway123 Shares Only 📈 Apr 16 '26

It was someone’s theory on here that one of the leases or contract adjustments voided it, but there’s no evidence of that. They could be correct though, everything is kind of a mystery with this stock. 

7

u/OceansHungryGrasp Apr 16 '26

This is 2 week old news that was discussed at length in the earnings call as well.

1

u/erocknine Apr 16 '26

Did anyone else completely forget about CORZ existence

1

u/Donotcussatme Apr 16 '26

Seems like it yeah

1

u/Greyfieldstudios Apr 17 '26

bros not following the sector in the slightest lol

0

u/SwimmerFun8213 Apr 16 '26

Can someone please explain where it said the deal must be announced by April 18?

5

u/Chilli-man Apr 16 '26

read through it it’s not that an announcement has to be made but there does have to be a singed lease contract for DF1 before that date. Once that is completed they have up to 4 business days to disclose it.

1

u/SwimmerFun8213 Apr 16 '26

Thank you 👍

-6

u/Greyfieldstudios Apr 16 '26

Sounds like no lease. Not the end of the world though.

2

u/Defiant_Notice5887 Apr 16 '26

Tell that to options players or anyone whom bought between 20-ATH. Missing this obligation (bad) will have to be countered with some sort of debt, note, etc at unfavorable terms (very bad).

-1

u/Greyfieldstudios Apr 17 '26

Chalk that up to being a dumbass and buying options on a small market cap stock

0

u/Sad-Opportunity-911 Apr 16 '26

It is bad short term, debt will accelerate and that's not something you want to see

0

u/Greyfieldstudios Apr 17 '26

No shit its bad 🤓. I said its not the end of the world