Group 1: Company Overview - Applied Digital has transitioned from providing infrastructure for crypto miners to focusing on building data centers for artificial intelligence (AI) workloads, resulting in significant growth in its share price [1][2] - The company operates as a specialized real estate developer and landlord, constructing facilities and leasing them to tenants running AI servers [2][3] Group 2: Financial Performance - Revenue has surged from $55 million in 2023 to $264 million over the last four reported quarters, indicating strong growth [4] - Applied Digital has secured commitments for up to $16 billion in revenue over the next 15 years, showcasing its potential for future expansion [4] Group 3: Risks and Challenges - The company is currently operating at a loss, with a reported loss of $125 million over the last 12 months, although there is a path to profitability [5] - Debt levels have increased dramatically from just over $42 million in Q1 2024 to nearly $2.6 billion, with a significant portion financed at an interest rate of 9.25% [6] - Heavy reliance on CoreWeave, its largest customer, poses a risk, as CoreWeave is also unprofitable and heavily indebted, which could impact Applied Digital's future lease income [7]

Group 1 - The first Innovation Forum and the unveiling of the Joint Innovation Laboratory were held in Shanghai, focusing on the theme "Intelligent Computing New Ecology, Co-creating New Future for Industries" to promote high-quality development of the digital economy [1][2] - Shanghai Data Port Co., Ltd. has established 35 high-standard data centers nationwide, creating a national computing power network and achieving industry-leading levels in green energy efficiency with a PUE (Power Usage Effectiveness) ranking among the best [1][2] - The company aims to transform from a "computing power infrastructure service provider" to a "comprehensive computing power service provider," emphasizing "intelligent computing" as its core development strategy [1][2] Group 2 - The Joint Innovation Laboratory will focus on core areas such as intelligent computing infrastructure architecture, large-scale cluster scheduling, green low-carbon technology, and full-stack domestic adaptation, aiming to build a leading industry model community and scenario-based computing power ecosystem [3] - A collaborative innovation platform was launched to deepen cooperation in the computing power field and promote the integration of computing resources with regional industries [3]

Core Viewpoint - Applied Digital is becoming a significant player in the AI infrastructure market, with its stock price increasing by 400% over the past year due to lucrative long-term lease contracts with cloud infrastructure providers [1]. Group 1: Stock Performance and Analyst Expectations - Analysts predict that Applied Digital's stock will continue to rise, with a 12-month median price target of $43.50, indicating an 18.5% potential upside from current levels [4]. - All 14 analysts covering Applied Digital rate it as a buy, reflecting strong confidence in the company's future performance [4]. Group 2: Financial Metrics and Growth Projections - Applied Digital's market capitalization is currently $9.8 billion, with a current stock price of $34.95 [5]. - The company has signed lease contracts worth $16 billion for 600 megawatts of AI data center capacity, which is expected to drive significant revenue growth [6]. - Revenue is forecasted to increase by 61% in the current fiscal year to $347 million, with a projected growth of 65% in the next fiscal year, potentially reaching $573 million [9][11]. Group 3: Revenue Recognition and Future Capacity - Applied Digital has begun recognizing lease revenue and anticipates a ramp-up in lease revenues over the next quarter, with expectations for meaningful revenue growth over the next 18 to 24 months [7]. - The company is also developing a new 430 MW data center campus and is in discussions to contract this capacity, indicating solid growth prospects beyond 2026 [7]. Group 4: Valuation and Market Potential - The stock currently trades at 32 times sales, a multiple justified by its strong revenue pipeline, with the potential for the market cap to reach $18.3 billion, nearly 80% above the current stock price [12].

The rapid increase in data centers in Malaysia came under the microscope on Saturday, with the AI-driven buildout drawing its first public protest in the Southeast Asian country https://t.co/Nvz0zWLahl ...

Core Viewpoint - Iren is transitioning from Bitcoin mining to AI infrastructure supported by Microsoft, which is reshaping its long-term strategy [1] Company Overview - Iren's stock closed at $41.83, reflecting a 5.13% increase, although it remains 22% below the previous week's closing price [2][6] - The company has a market capitalization of $13 billion and has seen a 71% growth since its IPO in 2021 [2][3] - Trading volume reached 74.3 million shares, significantly above the three-month average of 40.5 million shares [3] Financial Performance - Iren reported a gross margin of 31.17% [2] - The company experienced a Q2 earnings miss, leading to investor reassessment of its stock [2][6] Market Context - The S&P 500 and Nasdaq Composite saw gains of 1.97% and 2.18%, respectively, indicating a positive market trend [4] - Peers in the cryptocurrency mining sector, such as Mara Holdings and Riot Platforms, also experienced significant stock increases [5] Investor Sentiment - Investors are concerned about Iren's pivot to AI and are closely monitoring the execution of its Microsoft-backed cloud expansion [2][6] - Despite securing 95% of the financing for its Microsoft contract, including a $1.9 billion prepayment, investor confidence remains shaky due to the absence of new AI deals [6][7]

The AI Bet That Investors Still Love - Barron'sSkip to Main ContentThis copy is for your personal, non- commercial use only. Distribution and use of this material are governed by our Subscriber Agreement and by copyright law. For non-personal use or to order multiple copies, please contact Dow Jones Reprints at 1-800- 843-0008 or visit www.djreprints.com.# The AI Bet That Investors Still LoveBy [Ian Salisbury]ShareResize--- ReprintsIn this article[DLR][EQIX]Equinix owns this data center in San Jose, Calif. ...

Core Insights - CleanSpark (CLSK) reported a first-quarter fiscal 2026 loss of $0.10 per share, which was wider than the Zacks Consensus Estimate of an $0.08 loss [1] - The company experienced a loss from continuing operations of $1.35 per share, contrasting with earnings of $0.83 per share in the same quarter last year [1] - Revenues increased by 11.6% year over year to $181.2 million, but this figure missed the consensus estimate by 2.12% [1] Financial Performance - CleanSpark's first-quarter fiscal 2026 gross profit decreased by 7% year over year to $85.6 million, with a gross margin contraction of 940 basis points to 47.2% [4] - The company reported an operating loss of $316.6 million, compared to an operating income of $210 million in the year-ago quarter [4] - Adjusted EBITDA loss was $295.4 million, a significant decline from positive Adjusted EBITDA of $321.6 million in the previous year [5] - The net loss for the quarter was $378.7 million, primarily due to fair value adjustments related to bitcoin [5] Strategic Transition - CleanSpark is transitioning from a pure-play bitcoin miner to a broader energy, compute, and infrastructure platform, aiming to capture opportunities in high-performance computing (HPC) and AI data centers [2] - For 2026, management is focusing on expanding its power and land portfolio, monetizing available megawatt capacity, and accelerating the development of AI-focused data center infrastructure [3] - The company's multi-year roadmap includes phased execution plans targeting construction milestones and tenant visibility in 2026, scaling operations and diversifying tenants in 2027, and building multi-campus, giga-scale project capabilities by 2028 [3] Balance Sheet Overview - As of December 31, 2025, CleanSpark had cash and cash equivalents of $458 million, a significant increase from $43 million as of September 30, 2025 [6] - The total long-term debt, net of debt discount and issuance costs, was $1.79 billion as of December 31, 2025 [6] - The company held 13,099 Bitcoin, with an approximate market value of $1.15 billion, and had $400 million of available liquidity under its line of credit [7]

Core Viewpoint - The US, EU, and Japan are collaborating to counter China's dominance in global critical minerals supply chains, aiming to diversify supply and stimulate demand through a new agreement [1][2]. Group 1: Strategic Initiatives - The US and EU plan to finalize a deal within 30 days to enhance cooperation in critical minerals, focusing on preventing supply chain disruptions and promoting research and innovation [1]. - A Framework for Securing the Supply of Critical Minerals and Rare Earths was signed between the US and Japan, emphasizing the need for global supply diversification [6]. Group 2: Market Dynamics - Critical minerals are increasingly viewed as essential for national security and technological advancement, with China controlling 60% to over 90% of processing for various minerals [3]. - The US is investing hundreds of billions of dollars into the mining sector to reduce reliance on Chinese supply chains [10]. Group 3: Legislative Actions - The US has introduced the Critical Mineral Dominance Act to encourage domestic mining and refining, marking a significant step towards achieving mineral supply independence [11][12]. - Bipartisan support is evident in legislative efforts aimed at bolstering the US's position in the critical minerals market [11]. Group 4: Supply Chain Concerns - Recent trade measures by China, including export restrictions on rare earth elements, have heightened concerns about supply chain stability [8][9]. - The US is responding to perceived predatory trade practices by China, which are seen as undermining global mining efforts [7]. Group 5: Copper Market Insights - Copper prices have surged, reaching record highs due to supply fears, with demand expected to rise by 50% to 42 million metric tons by 2040 [13][14]. - The increasing demand for copper is driven by sectors such as AI, electric vehicles, and data centers, with significant quantities required for infrastructure [18][19].

Core Insights - Digital Realty Trust (DLR) reported a fourth-quarter 2025 core funds from operations (FFO) per share of $1.86, exceeding the Zacks Consensus Estimate of $1.83, with a year-over-year increase of 7.5% [1][8] - The company achieved operating revenues of $1.63 billion in the fourth quarter, surpassing the Zacks Consensus Estimate of $1.58 billion, reflecting a 13.8% year-over-year growth [2][8] - For the full year 2025, core FFO per share was $7.39, up 10.1% from the previous year, and total operating revenues grew 10% to $6.11 billion, exceeding the consensus mark of $6.06 billion [2] Financial Performance - DLR's signed total bookings in the fourth quarter are estimated to generate $400 million of annualized GAAP rental revenues, with total bookings amounting to $175 million [3] - Renewal leases signed during the quarter contributed $269 million of annualized cash rental revenues, with rental rates increasing by 6.1% on a cash basis and 12% on a GAAP basis [4] - Adjusted EBITDA for the quarter was $856.8 million, marking a 14.1% increase year over year [4] Portfolio Activity - DLR disposed of a non-core data center in the Dallas metro area for approximately $33 million [5] - The company acquired two land parcels totaling around 20 acres in the Portland metro area for $23.6 million, expected to support 85 megawatts of IT capacity [5] - DLR entered a joint venture with MedOne Ltd. to develop an 18 megawatt campus in Israel, contributing $7.1 million [6] Future Outlook - DLR guided for 2026 core FFO per share in the range of $7.90-$8.00, with total revenues projected between $6.60-$6.70 billion [11] - The company anticipates rental rates on renewal leases to increase by 6-8% on a cash basis and 8.5-10.5% on a GAAP basis, with year-end portfolio occupancy expected to rise by 50-100 basis points [12] - DLR's cash and cash equivalents stood at $3.45 billion at the end of the fourth quarter, with total debt of $18.4 billion [9][10]

Core Viewpoint - TeraWulf Inc. will host its earnings conference call for the fourth quarter ended December 31, 2025, on February 26, 2026, at 4:30 p.m. ET, with a press release detailing financial results to be issued prior to the call [1][2]. Group 1: Earnings Call Information - The earnings call is scheduled for February 26, 2026, at 4:30 p.m. ET [1]. - Participants can access the call via a dial-in number or a webcast link [3]. - Replay of the call will be available until March 12, 2026, at 11:59 p.m. ET [4]. Group 2: Company Overview - TeraWulf develops, owns, and operates sustainable, industrial-scale data center infrastructure in the U.S., focusing on high-performance computing (HPC) hosting and bitcoin mining [4]. - The company is led by experienced energy infrastructure entrepreneurs and aims to provide scalable compute capacity for next-generation AI and HPC customers [4].