Applied Digital (APLD), a company specializing in Bitcoin mining hosting and cloud services, experienced a dramatic stock drop on Tuesday, falling over 30% to $3.90 in early trading. This decline came immediately after the release of their disappointing quarterly earnings report, which fell short of analyst projections by nearly 18%. The report revealed revenue of $52.9 million for the period, with a particularly bleak showing from their cloud services division. Revenue in this segment plummeted 36% from the previous quarter, dropping from $27.7 million to $17.8 million. Applied Digital attributes this decline to difficulties transitioning from single-tenant contracts to a multi-tenant, on-demand GPU model. In response to these challenges, the company’s board approved a plan on April 10th to sell their cloud services division. This move aims to refocus the company’s efforts on its core data center operations and potentially position itself as a real estate investment trust (REIT) in the future.