LAS VEGAS, June 26, 2025 (GLOBE NEWSWIRE) -- Hyperscale Data, Inc. (NYSE American: GPUS), a diversified holding company ("Hyperscale Data" or the "Company"), today issued the following letter to its stockholders from its Founder and Executive Chairman, Milton "Todd" Ault III.
Dear Stockholders,
As the Founder and Executive Chairman of Hyperscale Data, I want to share important updates on our strategic direction and the substantial opportunities we believe lie ahead.
Undervalued Opportunity in a Booming Sector
Recent market activity highlights the substantial value potential of our Michigan data center facility (the "Michigan Facility"). We have seen recent transactions, such as Applied Digital Corporation ("Applied") securing a long-term hosting contract with CoreWeave which is expected to generate over $7 billion in aggregate revenue for Applied over 15 years based on the delivery of 250 megawatts ("MW") of critical power infrastructure over 15 years for artificial intelligence ("AI") and high-performance computing ("HPC") services.
We are actively pursuing similar hosting agreements and believe our Michigan Facility would be highly attractive to top tier hyperscale tenants seeking long-term leases if we meet our objective of scaling our Michigan Facility to 340 MW of power, as discussed below. Our discussions have included well-capitalized companies in the industry, and we are confident in our ability to secure strategic partnerships that could deliver meaningful revenue growth over the next 8 to 12 years.
We believe our 617,000-square-foot Michigan Facility, which we are targeting to scale up to 340 MW of power, represents a highly strategic and significantly undervalued asset for supporting large-scale AI and HPC workloads.
In February 2025, our indirect, wholly owned subsidiary, Alliance Cloud Services, LLC ("ACS"), reached an agreement in principle with its primary local utility to expand available power from approximately 30 MW to 300 MW. Completion of this upgrade is expected to take approximately 44 months from the execution of a formal letter of authorization, which is currently under negotiation.
Additionally, ACS has reached an agreement in principle with the local natural gas utility to supply an extra 40 MW of power. This portion of the project is expected to be completed within 18 months of executing definitive agreements. In total, these upgrades would expand the facility's capacity to approximately 340 MW, positioning Hyperscale Data to serve as a major AI and HPC infrastructure hub.
Strategic Separation and Leadership Transition
We intend to complete our previously announced separation from Ault Capital Group, Inc. ("ACG") by year-end 2025. After the separation, Hyperscale Data will operate as a standalone, publicly traded infrastructure company focused on delivering AI and digital asset compute solutions.
Following the separation of ACG, I will step away from Hyperscale Data to focus almost exclusively on leading ACG and its growing portfolio of businesses, which include private credit, AI software, social gaming, equipment rental, aerospace and defense, industrial, automotive, medical/biopharma, and hospitality operations.
Upon my departure, William Horne, our Chief Executive Officer, is expected to continue in his current role and assume the position of Chairman of the Board. Mr. Horne has been instrumental in driving our operational progress and strategic vision, and I am confident in his leadership as Hyperscale Data enters its next chapter.
Bridging the Valuation Gap
We believe the market significantly undervalues our business, particularly given the transformative potential of our Michigan Facility. As our strategy advances and the AI infrastructure market continues to evolve, we expect the gap between our intrinsic value and current market capitalization to narrow, creating meaningful long-term value for our stockholders.
That said, our strategy is not without risk. Successful execution will require considerable capital investment and the ability to secure long-term partnerships with leading technology firms. Completion of the power upgrades is subject to a number of risks and uncertainties, one or more which could result in the project being curtailed, delayed or terminated, including, but not limited to: failure to agree upon terms and execute definitive agreements; the inability of the Company or ACS to raise sufficient funds to pay for the power upgrades and other expenditures; failure to obtain regulatory consents and approvals; the inability to obtain sufficient easements, rights-of-way and land rights necessary to the work to be performed, and other presently unforeseen events or conditions.
In Closing
Thank you for your continued support and confidence in our vision. We remain committed to delivering long-term value through strategic execution and disciplined investment in next-generation infrastructure.
Sincerely,
Milton "Todd" Ault III
Founder and Executive Chairman
Hyperscale Data, Inc.
For more information on Hyperscale Data and its subsidiaries, Hyperscale Data recommends that stockholders, investors and any other interested parties read Hyperscale Data's public filings and press releases available under the Investor Relations section at hyperscaledata.com or available at www.sec.gov.
About Hyperscale Data, Inc.
Through its wholly owned subsidiary Sentinum, Inc., Hyperscale Data owns and operates a data center at which it mines digital assets and offers colocation and hosting services for the emerging AI ecosystems and other industries. Hyperscale Data's other wholly owned subsidiary, ACG, is a diversified holding company pursuing growth by acquiring undervalued businesses and disruptive technologies with a global impact.
Hyperscale Data expects to divest itself of ACG on or about December 31, 2025 (the "Divestiture"). Upon the occurrence of the Divestiture, the Company would solely be an owner and operator of data centers to support HPC services, though it may at that time continue to operate in the digital asset space as described in the Company's filings with the SEC. Until the Divestiture occurs, the Company will continue to provide, through ACG and its wholly and majority-owned subsidiaries and strategic investments, mission-critical products that support a diverse range of industries, including an AI software platform, social gaming platform, equipment rental services, defense/aerospace, industrial, automotive, medical/biopharma and hotel operations. In addition, ACG is actively engaged in private credit and structured finance through a licensed lending subsidiary. Hyperscale Data's headquarters are located at 11411 Southern Highlands Parkway, Suite 190, Las Vegas, NV 89141.
On December 23, 2024, the Company issued one million (1,000,000) shares of a newly designated Series F Exchangeable Preferred Stock (the "Series F Preferred Stock") to all common stockholders and holders of the Series C Convertible Preferred Stock on an as-converted basis. The Divestiture will occur through the voluntary exchange of the Series F Preferred Stock for shares of Class A Common Stock and Class B Common Stock of ACG (collectively, the "ACG Shares"). The Company reminds its stockholders that only those holders of the Series F Preferred Stock who agree to surrender such shares, and do not properly withdraw such surrender, in the exchange offer through which the Divestiture will occur, will be entitled to receive the ACG Shares and consequently be stockholders of ACG upon the occurrence of the Divestiture.
Forward-Looking Statements
This press release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements generally include statements that are predictive in nature and depend upon or refer to future events or conditions, and include words such as "believes," "plans," "anticipates," "projects," "estimates," "expects," "intends," "strategy," "future," "opportunity," "may," "will," "should," "could," "potential," or similar expressions. Statements that are not historical facts are forward-looking statements. Forward-looking statements are based on current beliefs and assumptions that are subject to risks and uncertainties.
Forward-looking statements speak only as of the date they are made, and the Company undertakes no obligation to update any of them publicly in light of new information or future events. Actual results could differ materially from those contained in any forward-looking statement as a result of various factors. More information, including potential risk factors, that could affect the Company's business and financial results are included in the Company's filings with the U.S. Securities and Exchange Commission, including, but not limited to, the Company's Forms 10-K, 10-Q and 8-K. All filings are available at www.sec.gov and on the Company's website at hyperscaledata.com.
Hyperscale Data Investor Contact:
IR@hyperscaledata.com or 1-888-753-2235
