Is APLD (Applied Digital Corporation) Halal or Haram?

Based on our AAOIFI-standard shariah screening, APLD is Halal and considered permissible for Muslim investors. It passed all 4 of 4 compliance screens including business activity review, debt-to-market-cap ratio (8.65% vs ≤33% threshold), interest income ratio (1.45% vs ≤5% threshold), and cash & securities ratio (1.40% vs ≤33% threshold).

Applied Digital Corporation is a specialized infrastructure provider focusing on the heavy lifting required for modern technology. Instead of just building software, they design and operate the physical data centers and cloud services that power high-performance computing (HPC) and artificial intelligence workloads. Their business is split into hosting crypto mining operations, providing GPU cloud services for AI development, and managing the actual data center facilities across North America. For Muslim investors, APLD is considered Halal and fully compliant with AAOIFI standards, having passed all four screening criteria. This means the company's core business of renting out computing power and data center space is permissible, and it does not rely heavily on haram revenue streams. Investors can be confident that the foundational activities of the company align with Islamic investment principles. Financially, the company demonstrates strong shariah compliance with a low debt-to-market cap ratio of 8.6%, significantly under the 33 % concern threshold. Additionally, their interest income is negligible at 1.45% of revenue, indicating that they are not generating significant profit from cash deposits, which is a common trap for tech companies sitting on large cash piles. This lean financial structure makes them an attractive option for those seeking pure exposure to the AI infrastructure boom. While the stock is currently compliant, investors should keep an eye on the company's involvement in the crypto mining space. While hosting mining equipment is generally permissible, the volatility of the crypto market can impact the company's financial stability and debt ratios in the future. Regular screening is recommended to ensure their debt levels remain low as they expand their expensive data center infrastructure. Applied Digital Corporation operates in the Technology sector under the Information Technology Services industry and is headquartered in Dallas, TX, US. The company is led by CEO Wesley Cummins and employs approximately 150 people.

APLD was screened using AAOIFI-based shariah compliance criteria. Four tests are applied: (1) Business Activity — the company's core business must not derive primary income from haram (prohibited) activities such as alcohol, gambling, tobacco, or interest-based finance. (2) Debt-to-Market-Cap — total debt must not exceed 33% of market capitalization. (3) Interest Income — interest income must not exceed 5% of total revenue. (4) Cash & Securities — cash and interest-bearing securities must not exceed 33% of market cap. APLD passed 4 of these 4 screens.

Although APLD passes all shariah screens, it does earn $3.1M in interest income (1.45% of revenue). Many scholars recommend purifying this portion by donating the equivalent percentage of any dividends received to charity. For example, if you receive $100 in dividends, you would donate approximately $1.45 to purify the income.

APLD was last screened on 2026-02-25. Shariah compliance status can change as companies report new financial data, acquire new businesses, or shift revenue streams. We recommend checking back periodically for the most up-to-date screening results.