Applied Digital's stock price fell 30% due to lower-than-expected revenue, and it plans to sell its cloud computing division

ChainCatcher news, according to CoinDesk, Bitcoin mining hosting and cloud services company Applied Digital (APLD) saw its stock price drop by 30% on Tuesday due to the company's quarterly earnings report falling nearly 18% below analyst expectations, with early trading prices around $3.90.

The company reported quarterly revenue of $52.9 million, with particularly poor performance in its cloud services division, which saw a significant quarter-over-quarter revenue decline of 36%, dropping from $27.7 million in the previous quarter to $17.8 million. Applied Digital attributed this decline to the transition from single-tenant contracts to a multi-tenant, on-demand GPU model—this transition has faced technical challenges in its early stages.

The company's board approved a plan on April 10 to sell its cloud services business, aiming to refocus on its core HPC data center operations and potentially position itself as a Real Estate Investment Trust (REIT) in the future.