Monitor whether Base Electron secures its own financing to reduce APLD's contingent liability exposure, and watch for any disclosures about the valuation of APLD's 10% equity stake in Base Electron.
Price Chart
Executive Summary
Applied Digital Corporation (APLD) entered into a guarantee agreement with The Babcock & Wilcox Company (BW) to support Base Electron, Inc.'s obligations under a $2.4 billion design-build agreement for a 1.2 GW power generation facility intended to support APLD's data center operations. In exchange, APLD received a 10% equity stake in Base Electron, a related-party entity formed by APLD insiders.
Key Financial Metrics
Key Facts
- Applied Digital guaranteed Base Electron's obligations under a $2.4 billion power plant construction agreement with Babcock & Wilcox
- The 1.2 GW power facility is intended to support APLD's AI data center infrastructure
- APLD received a 10% equity stake in Base Electron as consideration for the guarantee
- Base Electron is a related-party entity formed by APLD executives and directors
- APLD's maximum exposure under the guarantee equals the full contract value of $2.4 billion
- The guarantee can be terminated by APLD paying $50M (after Aug 1, 2026) or $100M
Financial Impact
Up to $2.4 billion in contingent liability with $100 million termination option
Risk Factors
- APLD assumes up to $2.4 billion in contingent liabilities if Base Electron defaults
- Base Electron is a related-party entity with uncertain financial backing
- The power project's success is critical to APLD's AI infrastructure scaling plans
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 5 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001493152-26-008849 |
| Document: form8-k.htm | 0001493152-26-008849 |
| Document: 0001493152-26-008849-index-headers.html | 0001493152-26-008849 |
| Document: 0001493152-26-008849-index.html | 0001493152-26-008849 |
| Document: 0001493152-26-008849.txt | 0001493152-26-008849 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Jul 27, 2026 9w ago | 8-K | $26.62 $28.85 | ▲ +8.38% | ▲ +5.00% | $25.38 (−4.66%) |
Jun 26, 2026 13w ago | 8-K | $37.77 $27.19 | ▼ −28.01% | ▼ −27.73% | $25.38 (−32.80%) |
Jun 16, 2026 15w ago | 8-K | $45.57 $26.44 | ▼ −41.98% | ▼ −43.30% | $25.38 (−44.31%) |
Jun 12, 2026 16w ago | Institutional Cluster | $42.70 $31.15 | ▼ −27.05% | ▼ −28.83% | $25.38 (−40.56%) |
Jun 11, 2026 16w ago | Institutional Cluster | $41.47 $32.29 | ▼ −22.14% | ▼ −24.03% | $25.38 (−38.80%) |
Jun 9, 2026 16w ago | 8-K | $41.91 $30.71 | ▼ −26.72% | ▼ −28.17% | $25.38 (−39.44%) |
May 5, 2026 21w ago | 8-K | $44.24 $44.71 | ▲ +1.06% | ▼ −1.72% | $25.38 (−42.63%) |
Apr 27, 2026 22w ago | Insider Cluster | $33.67 $45.14 | ▲ +34.07% | ▲ +29.11% | $25.38 (−24.62%) |
Apr 23, 2026 23w ago | 8-K | $36.35 $39.52 | ▲ +8.72% | ▲ +4.09% | $25.38 (−30.18%) |
Apr 23, 2026 23w ago | Press Release | $36.35 $39.52 | ▲ +8.72% | ▲ +4.09% | $25.38 (−30.18%) |
US Market Status
Subscribe to SecBot
Get Real-Time SEC Filing Intelligence
Comprehensive SEC filing analysis delivered the moment filings hit EDGAR. Sentiment scoring, impact analysis, and actionable insights for every material event.
Try SecBot Free Coming soon: SecBot Pro with alerts, watchlists, and API access