SCHEDULE 13G/A: Clearfield Capital Management Discloses 2.4% Stake in Applied Digital Corp.

Clearfield Capital Management LP and Philip J. Hilal have disclosed a beneficial ownership of 2.4% in Applied Digital Corp., holding 5,005,779 shares of common stock as of December 31, 2024.

Summary

• Clearfield Capital Management LP and Philip J. Hilal have filed an Amendment No. 1 to Schedule 13G, disclosing their beneficial ownership in Applied Digital Corp.
• As of December 31, 2024, the reporting persons collectively beneficially own 5,005,779 shares of Applied Digital Corp.'s common stock.
• This ownership represents 2.4% of the company's outstanding common stock.
• The percentage is calculated based on 211,245,607 shares of common stock outstanding as of November 20, 2024, as reported in the company's Prospectus filed on November 27, 2024.
• Clearfield Capital Management LP is a Delaware limited partnership acting as the investment manager to Clearfield Master Fund LP.
• Philip J. Hilal is the Chief Investment Officer of Clearfield Capital Management LP and the Managing Member of its general partner.
• The filing certifies that the securities were acquired and are held in the ordinary course of business and not for the purpose of changing or influencing control of the issuer.

Sentiment

Score: 5

Explanation: The document is a factual disclosure of beneficial ownership and does not contain positive or negative operational or financial news. The presence of an institutional investor can be seen as neutral to slightly positive.

Positives

• Disclosure of a significant institutional investor, Clearfield Capital Management LP, holding a stake in Applied Digital Corp., which can be seen as a vote of confidence.
• The filing indicates the shares are held in the ordinary course of business, suggesting a passive investment rather than an activist intent to influence control.

Risks

• The document does not detail specific risks related to Applied Digital Corp.'s operations or financial health. It only pertains to beneficial ownership disclosure.

Future Outlook

NA

Management Comments

• "The filing of this statement should not be construed as an admission that any Reporting Person is, for purposes of Section 13 of the Securities Exchange Act of 1934, the beneficial owner of the securities reported herein."
• "By signing below I certify that, to the best of my knowledge and belief, the securities referred to above were acquired and are held in the ordinary course of business and were not acquired and are not held for the purpose of or with the effect of changing or influencing the control of the issuer of the securities and were not acquired and are not held in connection with or as a participant in any transaction having that purpose or effect, other than activities solely in connection with a nomination under §§ 240.14a-11."

Industry Context

This Schedule 13G filing indicates that a significant institutional investor, Clearfield Capital Management LP, has taken a passive stake in Applied Digital Corp. Such filings provide transparency into major ownership positions, which can influence market perception and investor confidence. For investment professionals, it signals that a reputable fund sees value in the company, although the filing itself does not provide the rationale for the investment.

Stakeholder Impact

• Shareholders: Provides transparency regarding a significant institutional holder, potentially influencing investor sentiment and trading activity.
• Management: Awareness of a notable institutional investor on their shareholder register.

Next Steps

• Applied Digital Corp. will continue its regular SEC reporting.
• Clearfield Capital Management LP will update its beneficial ownership stake in future Schedule 13G/A filings if its ownership percentage changes significantly (e.g., crosses 5% or drops below 5% if previously above).

Key Dates

Keywords

Applied Digital Corp, Clearfield Capital Management LP, Philip J. Hilal, Schedule 13G, Beneficial Ownership, Institutional Investor, Common Stock, SEC Filing, Investment Management, Passive Investment