Is Applied Digital (APLD) stock halal?
Screened against AAOIFI Shari’ah Standard 21
No. Applied Digital (APLD) does not pass the AAOIFI Shari’ah Standard 21 screen. Cash and interest-bearing investments are 36.8% of the company’s 36-month average market value. AAOIFI’s limit is under 30% (Shari'ah Standard 21, 3/4/3). Last checked 26 September 2026.
Applied Digital is not compliant under Halal / Islamic guidelines
AAOIFI Shari’ah Standard 21 Financial Audit
Figures from the latest annual report (the SEC filing or, for European companies, the ESEF annual report, where one exists, checked against Yahoo Finance) and a 36-month average market value.
| Test | Standard Limit | Actual Figure | Status |
|---|---|---|---|
| Main business | — | — | Pass |
| Interest-bearing debt | 30% | 117.99% | Review |
| Cash and interest-bearing investments | 30% | 36.83% | Fail |
| Prohibited income | 5% | 26.96% | Review |
| Not just cash and debts | 90% | 17.86% | Pass |
Key Findings & Observations
- The interest-bearing debt test couldn’t be settled: The figures give 1.3% and 118.0%, on either side of the limit. Includes lease liabilities that may be ordinary rent, which AAOIFI does not count as borrowing.Source: AAOIFI Shari'ah Standard 21
- Cash and interest-bearing investments are 36.8% of the company’s 36-month average market value. AAOIFI’s limit is under 30% (Shari'ah Standard 21, 3/4/3).Source: AAOIFI Shari'ah Standard 21
- The prohibited income test couldn’t be settled: Only an upper estimate is available, and it is over the limit. Interest income is not reported, so we assume all cash, investments and receivables earned 10%, which is more than they could have.Source: AAOIFI Shari'ah Standard 21
- Offers energized infrastructure to crypto mining, a sector often associated with speculative trading and high uncertainty, which may be non‑compliant with Shariah principles.Source: News Analyzer
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Frequently Asked Questions about Applied Digital Corporation (APLD)
Is Applied Digital (APLD) stock halal?▾
No. Applied Digital (APLD) does not pass the AAOIFI Shari’ah Standard 21 screen. Cash and interest-bearing investments are 36.8% of the company’s 36-month average market value. AAOIFI’s limit is under 30% (Shari'ah Standard 21, 3/4/3). Last checked 26 September 2026.
What is Applied Digital's debt ratio under Islamic finance standards?▾
Under AAOIFI Shari’ah Standard 21, interest-bearing debt must stay under 30% of a company's 36-month average market value. Applied Digital's ratio is about 118.0%.
How much dividend purification is required for Applied Digital (APLD) stock?▾
Applied Digital does not pass the screen, so purification does not apply: the standard does not permit holding it.
Does Applied Digital operate in prohibited business activities?▾
AAOIFI Shari’ah Standard 21 excludes companies whose main business is prohibited, such as alcohol, pork, gambling, conventional interest-based finance and adult entertainment. Applied Digital's main business is checked against these. For companies that file with the US SEC, revenue by division is also read from the filing, so a division in a prohibited business is counted. Where the check cannot be settled, the result is shown as Needs Review rather than guessed.
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