APLD - Heavily shorted, recent catalyst, shorts doubled down vs covering
EDIT: found out 2024 convertible notes have a strike of 9.75 that allows for \~ 61m in free shorting pressure for the people that hold them. anything over that is a hedged risk and is what is representing the volatility. This probably kills a squeeze attempt without massive buying and holding volume. I'd say this is more a day trade/swing trade stock OR a legitimate long term investment hold. Squeezing will be very hard when they have that much in shares to short with for essentially free.
[https://www.tipranks.com/news/the-fly/applied-digital-price-target-raised-to-65-from-58-at-roth-capital-thefly-news-2?utm\_source=robinhood.com&utm\_medium=referral](https://www.tipranks.com/news/the-fly/applied-digital-price-target-raised-to-65-from-58-at-roth-capital-thefly-news-2?utm_source=robinhood.com&utm_medium=referral)
https://preview.redd.it/ot42wxb0r5xg1.png?width=566&format=png&auto=webp&s=7738ce6a135c720dc6df0e65d3bcb858e4e013ab
https://preview.redd.it/d8crzlk1r5xg1.png?width=1245&format=png&auto=webp&s=737df847811e71bf2d5b12bdbedb568b70be40d9
They've been aggressively defending their short positions after a major catalyst drop yesterday. still hasn't reached new ATH's despite a new 7.5B contract.
I ran some loose numbers and found a projected FMV market cap of 14-15B with a 20x multiple
article in the first link points more to 18-19B MC target.
One of the few data center plays just about fully contracted out. CAPEX is covered from my understanding, no warrants.
https://preview.redd.it/8163o1snr5xg1.png?width=391&format=png&auto=webp&s=687b26a36b43c13d9210042aa23b0db31b146a9b
25x multiple \^
https://preview.redd.it/dx9j7fupr5xg1.png?width=392&format=png&auto=webp&s=46e457972704fb8f086eebca16d31be90c29015e
20x multiple \^
I've been in since $35 and just holding 100 shares for the long term. tapped out on drypowder or I would have gone larger
NFA - do with this what you will. I'll sell at $60 if it gets there or ill continue to hold.