SCHEDULE: Vanguard Group Maintains 8.65% Stake in Applied Digital

The Vanguard Group reported an 8.65% beneficial ownership in Applied Digital Corp common stock, alongside an internal realignment of its portfolio management services.

Summary

• The Vanguard Group holds beneficial ownership of 24,168,082 shares of Applied Digital Corp common stock.
• This represents 8.65% of the class of securities.
• Vanguard has shared voting power over 2,000,055 shares and shared dispositive power over all 24,168,082 shares.
• An internal realignment occurred at The Vanguard Group, Inc. on January 12, 2026, where it ceased performing portfolio management services and administering proxy voting.
• Certain subsidiaries or business divisions of Vanguard are expected to report beneficial ownership separately (on a disaggregated basis) following this realignment.

Sentiment

Score: 6

Explanation: StockSavvy.ai views this as a neutral-to-slightly-positive update. The continued significant stake by Vanguard is a positive signal, while the internal realignment is an administrative change for Vanguard and not directly impactful on Applied Digital Corp's operational performance.

Positives

• The continued significant stake (8.65%) by a major institutional investor like The Vanguard Group may signal ongoing confidence in Applied Digital Corp's long-term prospects.

Negatives

• The internal realignment at The Vanguard Group, Inc. means that the beneficial ownership reporting will be disaggregated among its subsidiaries, which could lead to a perceived reduction in Vanguard's reported aggregate stake in future filings, even if the underlying holdings remain within the broader Vanguard ecosystem.

Future Outlook

The filing does not provide a future outlook for Applied Digital Corp, focusing instead on The Vanguard Group's beneficial ownership and internal operational changes.

Management Comments

• The Vanguard Group, Inc. anticipates that certain subsidiaries or business divisions will report beneficial ownership separately (on a disaggregated basis) from The Vanguard Group, Inc. in reliance on SEC Release No. 34-39538 (January 12, 1998), following an internal realignment on January 12, 2026.

Industry Context

StockSavvy.ai notes that large institutional holdings, such as Vanguard's 8.65% stake in Applied Digital Corp, are common in the market, reflecting passive investment strategies or active management confidence. The internal realignment within Vanguard is an operational change specific to the fund manager, not directly indicative of a shift in investment strategy towards Applied Digital Corp, but rather a structural change in how its various entities report holdings.

Management Changes

Corporate Governance

Stakeholder Impact

• Shareholders of Applied Digital Corp: The continued significant institutional ownership by Vanguard may provide a level of stability and confidence, although the future disaggregated reporting by Vanguard's subsidiaries might alter how this ownership is perceived.
• The Vanguard Group's clients: Clients' rights to receive dividends or proceeds from the sale of securities remain unchanged, with no single client's interest exceeding 5%.

Next Steps

• Certain subsidiaries or business divisions of The Vanguard Group, Inc. are expected to report beneficial ownership separately (on a disaggregated basis) from The Vanguard Group, Inc. in future filings.

Key Dates

Recommendation

The filing is a routine Schedule 13G amendment indicating a significant, but largely unchanged, institutional stake by The Vanguard Group in Applied Digital Corp. While the internal realignment at Vanguard is notable for the reporting entity, it does not fundamentally alter the investment thesis for Applied Digital Corp or suggest a change in Vanguard's overall investment strategy regarding the company. Therefore, a 'hold' recommendation is appropriate as this filing provides no new material information to warrant a change in investment position.

Keywords

Applied Digital Corp, Vanguard Group, Schedule 13G, Beneficial Ownership, Common Stock, Institutional Investor, Equity Stake, ADIG