# Applied Digital revenue quadruples as AI data center demand reshapes former crypto miner > Source: > Published: 2026-07-28 13:28:37+00:00 Via foreignpolicyjournal.com # Applied Digital revenue quadruples as AI data center demand reshapes former crypto miner The company's pivot from crypto mining infrastructure to AI-focused data centers is paying off with a 407% year-over-year revenue surge and a contracted pipeline worth tens of billions. Applied Digital just posted the kind of revenue growth that makes Wall Street analysts do a double take. The company reported fiscal Q4 2026 revenue of $258.7 million, a 407% increase compared to the same quarter last year. Full-year revenue hit $611.3 million, up 167% from the prior fiscal year. ## From mining rigs to AI factories Applied Digital’s origin story is rooted in cryptocurrency mining infrastructure. The company now calls its AI-focused facilities “AI Factories.” These purpose-built data centers are designed to handle high-performance computing workloads, the kind that power large language models and other AI applications. Applied Digital’s Data Center Hosting segment, which serves crypto mining clients, still generated $37.3 million in Q4 from 286 megawatts of operational capacity in North Dakota. ## The contract pipeline is staggering Applied Digital has locked in approximately $20 billion in new multi-year leases with a single investment-grade hyperscaler across 810 megawatts of capacity. The company’s total contracted critical IT load now stands at 1.4 gigawatts. The company reports approximately $36 billion in 15-year base-term revenue across its pipeline. Factor in potential lease renewals, and that figure balloons to a potential $86 billion in lifetime value. CoreWeave, the GPU cloud computing company that went public earlier this year, serves as one of the key anchor tenants in Applied Digital’s leasing structure. CoreWeave’s leasing arrangement includes a $50 million letter of credit following an A3-rated refinancing. Applied Digital posted adjusted EBITDA of $107.2 million for fiscal year 2026. ## The crypto-to-AI pipeline is real Applied Digital has taken this further than most by spinning off its cloud services business into a separate publicly traded entity called ChronoScale, which now trades on Nasdaq under the ticker CHRN. Applied Digital retains a 96% ownership stake in the spinoff. ## What this means for investors The company’s balance sheet carries significant leverage, and having approximately $20 billion in contracted pipeline concentrated with a single hyperscaler creates tenant concentration risk. The net losses also deserve scrutiny, as the gap between adjusted EBITDA and actual profitability remains wide. The retention of 286 MW of crypto hosting capacity in North Dakota suggests management isn’t ready to fully exit the mining ecosystem. **Disclosure:** This article was edited by Editorial Team. For more information on how we create and review content, see our [Editorial Policy](https://cryptobriefing.com/editorial-policy/).