New York, January 15, 2026, 15:36 EST — Regular session
- Applied Digital shares slipped roughly 2% in afternoon trading
- A director reported selling 10,000 shares; separately, another filed paperwork to offload stock
- Co-founder Jason Zhang has been named president of the company
Shares of Applied Digital Corp fell roughly 2% on Thursday as investors digested insider selling reports and a shake-up in leadership at the data center developer.
The retreat follows a strong rally in early January, sparked by the company’s quarterly report detailing large, long-term leases tied to AI infrastructure. Applied Digital announced leases totaling 600 megawatts across two North Dakota campuses and mentioned ongoing discussions with another investment-grade client. 1
This matters now because the company’s strategy is clear-cut but leaves no room for error: secure tenants, build quickly, and fund the construction without wrecking the balance sheet. In this context, insider trades and senior hires are often seen—rightly or wrongly—as clues about management’s expectations for what’s ahead.
Applied Digital named co-founder and Chief Strategy Officer Jason Zhang as president, cementing his ongoing leadership role as the company expands its “AI Factory” platform. Chairman and CEO Wes Cummins will remain in his current positions. Zhang described the appointment as an “honored” step at a “momentous” juncture for the firm. 2
A Form 4 filing revealed that director Douglas S. Miller offloaded 10,000 shares on Jan. 12, fetching $38.54 each — roughly $385,000 in total. After the sale, the filing showed he still held 200,859 shares, including restricted stock units. 3
A separate Form 144 filing revealed that director Richard N. Nottenburg plans to sell up to 11,606 shares, valued around $409,000, through Morgan Stanley Smith Barney. The filing is a notice under SEC Rule 144, but it doesn’t assure the sale will take place. 4
Applied Digital shares slipped $0.77, roughly 2.1%, to $35.33 in afternoon trading. The stock’s been volatile lately, with sharp moves tied to big leasing deals and financing news.
Yet the upside hinges on flawless execution, which isn’t guaranteed. Hyperscalers often take months to finalize leasing decisions. Power and equipment schedules can shift. One missed construction deadline or a delayed tenant build-out can swiftly alter the cash requirements for an operator already strapped for capital.
Investors are keeping an eye on Applied Digital’s move to spin off its cloud business. The company, along with EKSO Bionics, has laid out a deal to create ChronoScale, aiming to wrap it up in the first half of 2026, pending approvals and other conditions. 5
APLD’s next key trigger will be any new filing or update related to the ChronoScale process. Also crucial will be indications that talks with the company’s next “investment-grade hyperscaler” are progressing from discussions to signed leases.
