Applied Digital Corporation (APLD) has completed the spin-off of its cloud computing division, which began trading on the Nasdaq under the ticker symbol CHRN as ChronoScale Corporation. The Dallas-based company retains approximately 97% ownership of the newly public entity after contributing the business to EKSO Bionics and injecting $15.75 million in cash.
ChronoScale opened at $15.57 per share, while Applied Digital shares last traded at $41.25 ahead of the Monday session. The separation creates two distinct publicly traded vehicles tied to the artificial intelligence infrastructure theme, with Applied Digital focusing on long-duration data-center hosting and ChronoScale targeting the accelerated-compute market.
Chairman and CEO Wes Cummins described the move as a deliberate step to separate the risk profiles of the two businesses. “This allows each entity to pursue its own strategic path,” he said, highlighting the different capital requirements and customer dynamics between hosting and cloud compute operations.
ChronoScale positions itself as an accelerated-compute platform, offering GPU access for AI model training, inference, and other high-performance workloads. Cenly Chen, former Chief Growth Officer and Senior Vice President at Super Micro Computer, has taken the helm as CEO and joined the board. “The next phase of AI isn’t about access—it’s about execution,” Chen stated, signaling the company’s focus on operational delivery.
On the capital front, Applied Digital secured a $300 million senior secured bridge loan led by Goldman Sachs to finance its third AI data center, Polaris Forge 1, in Ellendale, North Dakota. The 364-day facility carries an interest rate of the Secured Overnight Financing Rate plus 275 basis points. CFO Saidal Mohmand noted the company is keeping its options open for longer-term debt financing.
The company’s demand picture strengthened significantly in April, when Applied Digital locked in a $7.5 billion, 15-year lease with a new U.S. investment-grade hyperscaler at its Delta Forge 1 campus, a 430-megawatt site built for AI workloads. The hyperscaler, a massive cloud or internet company, is taking 300 megawatts of critical IT load. With this deal, Applied’s total contracted lease revenue has surged past $23 billion.
Applied Digital’s fiscal third-quarter results showed revenue of $126.6 million, a 139% jump from the prior year. Adjusted EBITDA came in at $44.1 million, while the net loss attributable to common stockholders widened to $100.9 million for the period ended February 28. The balance sheet showed $2.1 billion in cash and restricted cash against $2.7 billion in debt.
Despite the spin-off, execution risks remain. ChronoScale’s filing listed just one cloud customer, Together AI, as of December 31, 2025, warning that if that relationship ends or isn’t renewed, operating results could suffer until new clients are secured. The filing also showed the cloud unit operated 6,144 GPUs in fiscal 2025, generating $84.4 million in revenue but posting a net loss of $72.7 million for the year.
Investors are now watching three key factors: whether Applied Digital can bring its campuses online on schedule, whether ChronoScale can diversify its customer base, and whether lenders continue to fund AI data centers on terms that keep equity attractive. Demand for AI infrastructure is not in question, but hitting operational targets remains the challenge.
