| Unsubscribe |
Dear Reader,
The chaos you're seeing?
It's not chaos at all.
I realized that after two private meetings with United States Congressmen — three days after 2,000 missiles rained on Iran.
March 2nd. Back-to-back meetings. No cameras. No staff.
And what I dug into afterward led me to something much larger than anyone on the news is reporting.
A coordinated Two-Front Economic War.
Already in motion.
I didn't want to believe the scale of what I found.
But after weeks of research…
It became undeniable.
Click here to uncover the hidden strategy behind the Iran war.
You can ignore this…
Or you can understand what's really happening — and position yourself before the clock runs out.
Go here now and decide for yourself.
Sincerely,
Dylan Jovine
Founder, Behind the Markets
Applied Digital Plugs Into Hyperscaler Buyout Bids
Written by Jeffrey Neal Johnson. Posted: 10/12/2026.
Key Points
- Applied Digital secured access to up to 1 gigawatt of potential power capacity in Finland, extending its AI data center development pipeline into Europe.
- Applied Digital already has 1.41 gigawatts of contracted domestic critical IT load, representing about $36.2 billion in base-term contracted revenue.
- Applied Digital’s heavy debt load and continued losses remain important risks, but project financing and institutional ownership complicate the bearish case.
- Special Report: The Untouched Energy Source Behind a New Eight Year Tax Break
Securing gigawatt-scale power assets is one of the biggest bottlenecks facing global artificial intelligence (AI) infrastructure, and the market may be mispricing the companies addressing it. Advanced computing hardware no longer represents the primary obstacle for major technology sector companies. Instead, access to reliable, locally available power has taken its place.
Data center operators are increasingly valued on secured forward capacity rather than trailing revenue. Applied Digital (NASDAQ: APLD) recently secured a site for a one-gigawatt AI campus in Finland, adding to a domestic portfolio that already includes billions of dollars in contracted revenue.
Nvidia pours 7 billion into a light speed AI breakthrough (Ad)
Nvidia has invested more than 7 billion dollars into a light speed device that could reshape how AI systems operate.
Bill Gates put in over 200 million of his own money, while BlackRock, Vanguard, Morgan Stanley and Norway's sovereign wealth fund are positioning around it. Related stocks have already climbed 133 percent, 217 percent and 320 percent.
Wall Street analyst Jason Bodner, who called Nvidia at 4.50, is sharing his top pick tied to this trend at no cost.
Click here to see Jason Bodner's free AI stock pickBy packaging some of the most difficult components of international infrastructure expansion, including regulatory approval, utility access and real estate, Applied Digital is transforming its portfolio into a turnkey target for hyperscalers. This dynamic could set the stage for an upward repricing that challenges outdated bearish positioning. Investors tracking the AI infrastructure space may want to look beyond current cash burn and evaluate the monetization cycle for secured megawatt capacity.
Overcoming the AI Power Grid Bottleneck
The constraint on scaling artificial intelligence models is increasingly tied to access to electricity. While software companies command premium valuation multiples, the physical infrastructure supporting those models requires immense capital and years of permitting. Initial power availability at the Finland campus is expected in 2028.
The Nordic region offers established energy grids and a naturally cooler climate, which can reduce the cooling burden for high-density server racks. This geographic expansion could materially change Applied Digital's long-term growth trajectory. Building a gigawatt AI Factory campus from the ground up gives global hyperscalers what they often lack: time and space. Technology conglomerates have deep cash reserves, but they cannot instantly create grid-connected land.
Developing a site involves environmental studies, local zoning negotiations and complex power purchase agreements. By securing the site now, Applied Digital can bypass some of the fiercest competition for U.S. grid capacity while establishing a European foothold. Operators with permitted, high-capacity land rights have a distinct structural advantage over developers just entering the procurement cycle.
Why Trailing Revenue Misses the Big AI Picture
Valuing infrastructure companies during a rapid scale-up phase requires looking beyond near-term margin compression. Applied Digital currently carries a market capitalization near $6.8 billion. Bears point to a debt-to-equity ratio of about 2.88 and negative net margins as signs of weakness. However, those metrics tell an incomplete story.
The fiscal first-quarter 2027 earnings release revealed roughly $36 billion in contracted revenue over initial lease terms. A backlog of that magnitude could help reduce the risk associated with the capital expenditures required to build out both domestic campuses and the new Finland site. First-quarter revenue grew about 322% year over year to roughly $342 million, suggesting the operating model can scale even before factoring in the international pipeline.
The valuation can still appear steep when analyzed solely on trailing revenue. However, as Applied Digital's contracted backlog converts to recognized income, forward valuation multiples could compress rapidly. The market is pricing the stock based largely on today's construction costs rather than the potential cash flows supported by long-term tenant agreements.
Activating Domestic Megawatts Validates the Model
While the European expansion offers a long-term growth runway, domestic operations are monetizing power now. Before the Finland announcement, Applied Digital brought roughly 75 megawatts online at its Polaris Forge 1 facility. Combined with broader network activations totaling about 250 megawatts, Applied Digital is demonstrating its ability to turn secured land rights into revenue-generating critical IT load.
Delivering infrastructure on schedule is notoriously difficult because supply chain delays can affect specialized components such as transformers and switchgear. Consistently activating megawatt blocks builds confidence among institutional tenants. Hyperscalers require reliable partners, and when an operator successfully navigates a physical buildout and powers up a facility, it moves from speculative developer toward tier-one vendor status. Securing around 1.41 gigawatts of leased domestic IT load supports Applied Digital's engineering credentials and builds credibility for its upcoming Nordic development.
Institutional Buyers Front Run the Short Trap
A significant portion of the market remains skeptical. Short interest hovers around 21% of the float. Bearish traders appear focused on current cash burn and the execution risks associated with funding the European buildout. The short thesis relies heavily on the assumption that infrastructure operators will need to dilute shareholders to fund ongoing capital requirements.
This thesis may overlook how modern data center financing works. Hyperscalers often offer substantial prepayments or enter joint ventures to secure capacity. As these potentially nondilutive funding structures materialize, the bear case could weaken.
Institutional money is already positioning for this shift. Call option volume spiked ahead of the recent corporate announcements, and funds such as Two Seas Capital LP executed block purchases of shares shortly before the international expansion made headlines.
When Applied Digital holds billions of dollars in contracted backlog and continues to bring new capacity online, heavy short interest creates the potential for volatile covering events. Any announcement of a hyperscaler lease for the Finland site could force short sellers to exit their positions quickly, driving rapid price appreciation.
The Endgame for Turnkey Infrastructure Operators
The endgame for independent data center developers often leads to consolidation. Large technology firms require turnkey infrastructure to deploy accelerated computing hardware at scale. By navigating the utility and real estate acquisition phases in a stable European jurisdiction, Applied Digital has packaged some of the hardest parts of expansion into a single asset.
A valuation near $6.9 billion relative to an operational portfolio of 1.41 gigawatts, plus a one-gigawatt international pipeline, creates a noticeable disconnect compared with recent private-market transactions in the infrastructure sector. Gigawatt-scale capacity can command a valuation premium because its replacement cost, measured in both dollars and years, is exceptionally high.
Investors tracking the tech sector may want to monitor how quickly Applied Digital formalizes hyperscaler leases for the Finland site. Those with an appetite for volatility could watch for future joint venture announcements that ease capital expenditure concerns. More cautious investors might prefer to wait and see how management structures financing for the anticipated initial power availability in 2028 before establishing a position.
Bitcoin Is Bouncing Back—Here are 2 Ways to Play the Rebound
Written by Jessica Mitacek. Posted: 9/30/2026.
Key Points
- Bitcoin has rallied more than 41% from its July 1 year-to-date low, fueled by institutional inflows and easing crypto winter conditions.
- Coinbase has climbed roughly 36% from its February low, and its new Crypto-as-a-Service platform has attracted partners like PayPal and PNC.
- Strategy's stock has surged nearly 91% from its June low, but its Bitcoin-heavy balance sheet makes it far more volatile than the S&P 500.
- Special Report: The Untouched Energy Source Behind a New Eight Year Tax Break
It’s been a challenging year for crypto investors. Since Bitcoin (BTC) hit its all-time high (ATH) on Oct. 6, 2025, the coin and the broader industry have been in retreat. However, prices have rallied since mid-summer amid catalysts that have enthusiasts eyeing the end of crypto winter.
The largest cryptocurrency by market capitalization has staged a dramatic comeback. After hitting its year-to-date (YTD) low of $59,101.49 on July 1, BTC has gained more than 41%, leaving it down less than 5% in 2026.
The $100 Stock Behind Elon's Next Move (Ad)
A small, publicly traded supplier trading under $100 a share has reportedly worked alongside Elon Musk for more than a decade.
A federal filing may outline Musk's next major move: an AI network of up to a million satellites powered by the sun. James Altucher says this supplier holds the piece Musk doesn't own.
Watch James Altucher's free Masterclass on this Musk-linked supplier stockAs the rally continues, investors seeking indirect exposure through the equities market can consider two stocks that offer distinct approaches.
What’s Driving the Crypto Bounceback?
Bitcoin prices remain down nearly 24% over the past year and are trading nearly 33% below their ATH. In part, the current crypto winter resulted from Bitcoin’s own success. After hitting its record high, BTC fell alongside tech stocks in the same market rotation that saw the Nasdaq sell off after reaching its own ATH in October 2025.
Traders embraced a rotation away from high-growth, high-risk assets. Emerging markets, underappreciated industrials and materials sectors of the S&P 500, and small-cap stocks were direct beneficiaries.
But as with any market, crypto winters are natural and recurring, and the cycle appears to be easing. Historically, crypto bear markets have lasted around 13 months, suggesting the current downturn may be approaching a later stage. At the same time, a debasement trade fueled by record U.S. national debt and runaway bond yields is providing another potential tailwind for Bitcoin.
Other catalysts include surging institutional demand, which has rebounded after months of outflows. Spot Bitcoin ETFs recorded billions of dollars in inflows in August and September, while corporate treasuries and crypto whales absorbed market liquidity as summer wound down.
Bitcoin’s 2021–2022 downturn produced a smaller peak-to-trough decline than the two prior major crypto bear markets. During the 2014–2015 downturn, BTC fell from around $1,200 to around $170, a loss of roughly 86%. From 2017–2018, BTC declined from about $19,800 to $3,200, or roughly 84%. During the 2021–2022 crypto winter, BTC fell from nearly $69,000 to about $15,500, a decline of roughly 77%.
During the most recent downturn, BTC lost roughly 52% from its ATH in October 2025 to its YTD low on July 1. Meanwhile, two stocks leveraged to the crypto trade have steadily risen from their respective YTD lows, offering investors an equities-market approach to crypto’s rebound.
America’s Largest CEX Is Staging a Comeback
As the largest U.S.-based centralized exchange (CEX), Coinbase (NASDAQ: COIN) has amassed a market capitalization of nearly $51 billion.
The digital asset and crypto platform serves retail investors, institutional investors, developers and ecosystem partners.
Its offerings—including crypto custody, institutional prime brokerage and custody, staking services, a self-custody wallet, and tools that enable developers and businesses to build applications using blockchain networks—typically experience stronger demand when the crypto market gains momentum.
That was reflected in COIN’s performance, which can mirror BTC’s. Since its one-year high on Oct. 9—just five days after Bitcoin’s ATH—Coinbase has fallen by more than 50%.
However, since reaching its YTD low on Feb. 12, the stock has slowly moved higher, gaining around 36%.
When the company reported Q2 earnings on July 30, it missed on both the top and bottom lines. The earnings miss was its fifth in six quarters, while the revenue miss was its third consecutive miss and fourth in five quarters.
Still, Coinbase is evolving, making it an intriguing buy-low candidate.
Beyond serving as a CEX, the crypto firm launched its unified Crypto-as-a-Service (CaaS) platform on June 10, 2025. As a CaaS provider, Coinbase now allows banks, fintech companies, brokerages and payment processing companies to integrate white-label crypto trading, custody, staking and stablecoin payment rails. Major adopters include Webull (NASDAQ: BULL), PNC (NYSE: PNC), eToro (NASDAQ: ETOR) and PayPal (NASDAQ: PYPL).
The company is operating at a loss amid the crypto industry’s prolonged downturn, but Coinbase’s fundamentals have improved as Bitcoin bounces back. In Q2, revenue growth of negative 18.51% marked an improvement over Q1’s negative 30.54%. Additionally, Q2 free cash flow growth was nearly 65% quarter over quarter.
Coinbase receives a consensus Hold rating, but 20 of the 35 analysts covering the stock assign it a Buy rating. The $223 price target suggests more than 17% potential upside from current prices.
Institutional selling has subsided, while short interest remains elevated at 11.48% but is also improving.
Strategy’s Bitcoin Exposure Carries Significant Volatility
Strategy (NASDAQ: MSTR) is the world's first and largest publicly traded Bitcoin treasury company.
In 2020, MicroStrategy adopted Bitcoin as its primary treasury reserve asset, and the company rebranded as Strategy in February 2025.
Through equity offerings and debt financing, including convertible notes, Strategy has aggressively accumulated Bitcoin over the past five years. It has also tapped cash flows from legacy operations—specifically enterprise analytics and mobility software—to fund its BTC acquisitions.
As a result, MSTR’s performance closely resembles Bitcoin’s. Since their respective YTD lows on June 26, shares have rallied nearly 91%. To put that move in context, however, Strategy remains down more than 56% from its one-year high on Oct. 6, 2025.
As a Bitcoin treasury company, Strategy can introduce exceptionally high volatility to holders’ portfolios, with its underlying fundamentals taking a back seat to Bitcoin’s performance. That extreme balance-sheet concentration risk is reflected in a beta of 3.59, meaning MSTR is currently 259% more volatile than the S&P 500.
Still, the stock receives a Moderate Buy rating, and its $240 price target implies around 55% upside potential—reflective of BTC’s impact on its performance.
Short interest has fallen dramatically to 8.56% of the float, while institutional selling—which spiked during the depths of crypto winter—has also relented.
This message is a paid sponsorship provided by Behind the Markets, a third-party advertiser of MarketBeat. Why was I sent this email?.
If you need assistance with your subscription, please don't hesitate to contact our South Dakota based support team at contact@marketbeat.com.
If you would no longer like to receive promotional emails from MarketBeat advertisers, you can unsubscribe or manage your mailing preferences here.
© 2006-2026 MarketBeat Media, LLC. All rights protected.
345 N Reid Place, Sixth Floor, Sioux Falls, S.D. 57103-7078. United States of America..
No comments:
Post a Comment