AlphaTON Capital Announces $82.5 Million Strategic GPU Infrastructure Investment to Power Privacy-First Decentralized AI after Successful Pilot Launch of Telegram’s Cocoon AI

Rhea-AI Summary

AlphaTON Capital (Nasdaq: ATON) announced an $82.5M GPU infrastructure investment to acquire and deploy a 1,000+ Nvidia B200 GPU cluster to power Telegram’s Cocoon AI and provide external GPU rental services.

Transaction mix: $30M equity and $52.5M debt (36-month amortization). The deal adds $70M of Nvidia hardware to the balance sheet and combines with a $27M digital asset treasury for $97M total assets. Projected economics include IRR 59.7%, NPV $59.6M, and 5‑year cash returns of $150M.

Positive

• Adds $70M of Nvidia B200 GPU assets to balance sheet
• Transaction funded with $30M equity and $52.5M debt
• Projected IRR 59.7% and NPV $59.6M
• Expected $150M total cash returned over five years

Negative

• Debt facility amortizes over 36 months, creating near-term leverage
• Revenue model assumes 90% utilization and aggressive price assumptions (20% first-year compression)
• Year 1 gross profit margin projected at only 32% under base case

News Market Reaction

-12.56% 4.7x vol

17 alerts

-12.56% News Effect

+38.3% Peak Tracked

-10.3% Trough Tracked

-$2M Valuation Impact

$14M Market Cap

4.7x Rel. Volume

On the day this news was published, ATON declined 12.56%, reflecting a significant negative market reaction. Argus tracked a peak move of +38.3% during that session. Argus tracked a trough of -10.3% from its starting point during tracking. Our momentum scanner triggered 17 alerts that day, indicating notable trading interest and price volatility. This price movement removed approximately $2M from the company's valuation, bringing the market cap to $14M at that time. Trading volume was very high at 4.7x the daily average, suggesting heavy selling pressure.

Data tracked by StockTitan Argus on the day of publication.

Key Figures

Project capitalization: $82.5 million Nvidia GPU cluster value: $68 million Equity capital: $30 million +5 more

8 metrics

Project capitalization $82.5 million Total capitalization for GPU infrastructure, including working capital and deployment costs

Nvidia GPU cluster value $68 million Value of 1,000+ Nvidia B200 GPU high-performance compute cluster

Equity capital $30 million Equity portion of financing for GPU infrastructure transaction

Debt financing $52.5 million Debt facility via Vertical Data’s GPU Financing division, amortized over 36 months

Projected IRR 59.7% Internal rate of return for the GPU project per company projections

Projected NPV $59.6 million Net present value of the GPU project over a five-year horizon

Projected ROI 615% Return on investment for the project based on five-year cash flows

EBITDA margin range 64–73% Projected EBITDA margin over the five-year forecast period

Market Reality Check

Price: $0.5980 Vol: Volume 619,921 is well be...

low vol

$0.5980 Last Close

Volume Volume 619,921 is well below the 20-day average of 2,265,237, suggesting limited pre-news positioning. low

Technical Shares at $1.41 are trading below the $4.69 200-day moving average, reflecting a weak pre-news trend.

Peers on Argus

Peers in Asset Management showed mixed moves with ATON down 2.08%, while names l...

Peers in Asset Management showed mixed moves with ATON down 2.08%, while names like EQS and RMCO were up and BCG declined sharply, pointing to stock-specific dynamics rather than a sector-wide move.

Historical Context

5 past events · Latest: Dec 09 (Positive)

Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Dec 09	Investor outreach	Positive	-4.5%	CEO promoted 2026 roadmap and Cocoon AI initiatives at Abu Dhabi events.
Dec 08	AI infrastructure	Positive	+6.7%	First NVIDIA H200 GPUs went live on Cocoon AI with new #OwnYourNode program.
Dec 05	AMA announcement	Positive	-4.1%	Planned technical AMA to outline 2026 roadmap and monetization blueprint.
Dec 04	Shelf registration	Positive	+8.2%	Filed <b>$420.69M</b> shelf to fund GPU/AI buildout and acquisitions.
Dec 01	AI deployment	Positive	-9.5%	First Nvidia B200 GPUs deployed to Cocoon AI for a new revenue stream.

Pattern Detected

Positive roadmap, AI, and financing headlines have produced mixed reactions, with several instances where upbeat news coincided with negative next-day returns.

Recent Company History

Over recent weeks, AlphaTON has focused on scaling GPU infrastructure and the Cocoon AI ecosystem. On Dec 1, 2025, it deployed its first Nvidia B200 GPUs, followed by a $420.69M shelf filing on Dec 4 to fund further AI and M&A growth. Subsequent updates on the 2026 roadmap, AMA events, and deployment of NVIDIA H200 GPUs showed alternating positive and negative price reactions, indicating investor sensitivity to capital-raising and execution risk around its decentralized AI strategy.

Regulatory & Risk Context

Active S-3 Shelf

Shelf Active

Active S-3 Shelf Registration 2025-11-06

An active Form F-3 shelf dated Nov 6, 2025 registers up to 189,719 ordinary shares for resale by an existing holder, meaning the company would not receive proceeds from those specific sales, though the structure adds ongoing issuance capacity.

Market Pulse Summary

The stock dropped -12.6% in the session following this news. A negative reaction despite ambitious p...

Analysis

The stock dropped -12.6% in the session following this news. A negative reaction despite ambitious projections would fit the pattern where upbeat AI and roadmap news sometimes coincided with selling. Investors have previously reacted warily to capital-raising and leverage, including shelf and financing activity, which may color views of the new $82.5M GPU commitment. If the stock declined, concerns could focus on execution risk, debt amortization over 36 months, and whether projected IRR of 59.7% proves achievable.

Key Terms

ebitda margin, irr, npv, roi, +4 more

8 terms

ebitda margin financial

"The financial Model demonstrates consistent EBITDA margin ranging from 64-73%..."

EBITDA margin is the share of each dollar of sales that a company keeps as operating cash profit before interest, taxes, and accounting for equipment wear and long-term investments. Think of it like the cash a store has left from every sale after paying day-to-day running costs but before paying rent, loan interest or replacing old machinery. Investors use it to compare core profitability and operational efficiency across companies by removing financing and accounting differences.

irr financial

"Projected IRR: 59.7%Projected NPV: $59.6 millionProjected Equity Multiply..."

IRR (Internal Rate of Return) is the annualized percentage return an investment is expected to produce based on its projected series of cash outflows and inflows; mathematically, it’s the rate that makes the present value of those cash flows balance to zero. Investors use IRR to compare and rank projects or investments—similar to comparing the interest rates on savings accounts—to judge which offers the best return for the time and risk involved.

npv financial

"Projected IRR: 59.7%Projected NPV: $59.6 millionProjected Equity Multiply..."

Net Present Value (NPV) is a way to measure how much a future stream of money is worth today. It helps investors decide whether an investment is worthwhile by comparing the current value of expected earnings to its initial cost. A positive NPV suggests the investment could generate profit, making it a key tool for evaluating financial decisions.

roi financial

"Projected Equity Multiply: 5xProjected ROI: 615%Projected Total Cash returned..."

Return on investment (ROI) measures how much money an investor makes or loses relative to the amount they put in, expressed as a percentage. It helps compare the efficiency of different investments—like checking which of several gardens produced the most fruit for the seeds planted—so investors can decide which opportunities deliver the best payoff for the risk and capital they commit.

data sovereignty technical

"This initiative prioritizes ethical access, user data sovereignty, and environmental responsibility."

Data sovereignty is the principle that digital information is subject to the laws and control of the country or entity where it is stored or processed. For investors, it matters because where data lives affects a company's legal obligations, costs, ability to sell services across borders, and exposure to government access or restrictions — like owning a house that must follow the rules of the town it sits in.

decentralized technical

"Cocoon AI... is building a privacy-first alternative... running AI models on decentralized infrastructure..."

Decentralized describes a system where control and decision-making are spread across many participants instead of held by a single central authority. Like a group of neighbors sharing responsibility for a community garden rather than one owner, decentralization can reduce single points of failure, change how profits and risks are allocated, and affect transparency and governance—key factors investors evaluate for stability, control, and regulatory exposure.

high-performance compute technical

"1,000+ Nvidia B200 GPU high-performance compute cluster valued at approximately $68 million."

High-performance compute describes very powerful computer systems and services designed to process large amounts of data or run complex simulations far faster than ordinary computers — think of a high-speed highway and a team of many workers tackling a huge job at once. For investors, it matters because access to faster, more reliable computing can speed product development, improve accuracy of models, lower operational costs, and create competitive advantages that affect revenues, costs and valuation.

amortized financial

"The debt facility... to be fully amortized over 36 months..."

Amortized means spreading a cost or a debt repayment into regular portions over a set period so each payment covers part of the principal and, if applicable, interest. For investors, knowing something is amortized shows how much of a company’s payments are scheduled over time, which affects cash flow, reported profits, and the remaining debt burden—similar to how a mortgage or installment plan breaks a large purchase into predictable monthly payments.

AI-generated analysis. Not financial advice.

This Deal adds $70M of Nvidia GPUs to AlphaTON’s Balance Sheet, combining with the $27M Digital Asset Treasury to total $97M in Total Assets.Do

Dover, DE, Nov. 26, 2025 (GLOBE NEWSWIRE) -- AlphaTON Capital Corp. (Nasdaq: ATON) ("AlphaTON" or the "Company"), a digital asset technology company focused on the Telegram and TON ecosystem, today announced it has entered into agreements to acquire and deploy a 1,000+ Nvidia B200 GPU high-performance compute cluster valued at approximately $68 million. This strategic infrastructure investment positions AlphaTON as a critical compute provider for Telegram’s Cocoon AI - the world’s largest decentralized, privacy-preserving artificial intelligence network, while creating a diversified revenue stream through high-performance compute and GPU rental services.

TRANSACTION STRUCTURE AND FINANCING

The transaction will be financed through a strategic capital structure consisting of:

• $30 million in equity capital from AlphaTON Capital Corp.
• $52.5 million in debt financing to be facilitated by Vertical Data’s GPU Financing division
• Total project capitalization of approximately $82.5 million (includes additional working capital and deployment costs)
• Total of $70M of high-value Nvidia hardware assets added to the balance sheet

The debt facility facilitated by Vertical Data to be fully amortized over 36 months, with the project maintaining debt service coverage ratios above 1.0x throughout the amortization schedule. The compute cluster will be held as a revenue-generating hard asset on AlphaTON's balance sheet.

STRATEGIC INFRASTRUCTURE PARTNERSHIP

AlphaTON has assembled a consortium of best-in-class infrastructure partners to deploy and operate the GPU cluster:
CUDO Compute – A leading European NVIDIA Cloud Partner (NCP), will serve as the primary deployment and operations partner for the GPU infrastructure. CUDO will lead cluster installation, orchestration, workload management and lifecycle operations, while also providing the commercialization engine through its GPU marketplace and AI services platform. CUDO’s operational stack ensures production-grade uptime, enterprise-grade telemetry and scalable multi-tenant governance across the full cluster.

SNET Energy UK Ltd – Providing expertise in sustainable-power data center development and AI infrastructure optimization, SNET Energy's involvement ensures technical excellence and alignment with decentralized AI principles.

Vertical Data – Beyond debt financing, Vertical Data will provide the GPU cluster and deployment services, and hardware sourcing.

HARDWARE SPECIFICATIONS AND CAPABILITIES

The compute cluster will feature 1,000+ Nvidia B200-class GPUs, representing cutting-edge AI inference and training capabilities. The infrastructure is designed with a modular, upgradable architecture to accommodate rapid evolution in AI hardware and model architectures. The cluster will operate at 90% target utilization, serving dual revenue streams:

1. Dedicated Workloads for Cocoon AI – Priority allocation for Telegram/Cocoon AI's proprietary, privacy-preserving AI network
2. External GPU Rentals – Monetization through CUDO Compute's marketplace, initially for bare metal compute and progressively for AI services

COMPELLING PROJECTED PROJECT ECONOMICS

The investment presents institutional-grade returns with strong downside protection:

• Projected IRR: 59.7%
• Projected NPV: $59.6 million
• Projected Equity Multiply: 5x
• Projected ROI: 615%
• Projected Total Cash returned (5-year projection): $150 million

Revenue projections incorporate conservative assumptions, including 20% annual price compression in the first year and 10% in the following years, 90% utilisation rates, and comprehensive operating cost inflation. The financial Model demonstrates consistent EBITDA margin ranging from 64-73% over five year forecast horizon, with Year 1 gross profit margins of 32%

SUCCESSFUL PILOT LAUNCHED ON NOVEMBER 25, 2025

AlphaTON Capital announced the successful completion of a landmark pilot program utilizing Telegram’s innovative Cocoon AI infrastructure, a milestone made possible through a strategic collaboration that granted the firm early access. "Our strategic partnership with Telegram and Cocoon provided early access to the technology, and we successfully launched a Cocoon pilot on November 25, 2025," said  Logan Golema, CTO of AlphaTON Capital. "Following this validation, we are now going to deploy the technology into our secure and decentralized AI hosting infrastructure to further enhance our network's scalability and performance."

STRATEGIC RATIONALE

Democratizing AI with “AI For Good”

As Artificial Intelligence becomes increasingly centralized among a few global technology giants, AlphaTON is committed to an “AI For Good” mandate. This initiative prioritizes ethical access, user data sovereignty, and environmental responsibility. By supporting Cocoon, AlphaTON is helping to build a sovereign compute layer where user data remains encrypted and private, and where content rights are respected—a direct alternative to the surveillance-capitalism models prevalent in the industry today.

“We believe the future of AI must be decentralized, private, and accessible to all, not hoarded within the walled gardens of Big Tech,” said Brittany Kaiser, Chief Executive Officer of AlphaTON Capital. “This investment is not just about hardware; it is a commitment to ethical infrastructure. By powering Project Cocoon, we are giving Telegram’s nearly one billion users access to AI tools that respect their privacy and freedom, while ensuring our investors have direct exposure to the most valuable asset class of the next decade: sovereign compute.”

ALIGNMENT WITH COCOON AI'S DECENTRALIZED VISION

Cocoon AI, leveraging Telegram's 1 billion+ monthly active user base, is building a privacy-first alternative to centralized AI services dominated by Meta, Google, Amazon, and Microsoft/OpenAI. Cocoon's approach—running AI models on decentralized infrastructure with user data sovereignty—requires compute resources that are not owned, monitored, or controlled by Big Tech competitors.

AlphaTON's GPU cluster provides Cocoon AI with:

• Guaranteed Performance and Uptime – Dedicated capacity free from cloud provider throttling or resource contention
• Data Sovereignty – Complete control over data boundaries, ensuring user privacy is architecturally protected
• Infrastructure Independence – Freedom from platform risk and competitive intelligence exposure inherent in Big Tech cloud services
• Economic Value Capture – Direct ownership eliminates cloud intermediary margins, improving unit economics

DEPLOYMENT TIMELINE AND COMMERCIAL MILESTONES

1. Q4 2025: Transaction close, establishment of asset holding structure, Cocoon AI testing and launch on first fleet of machines
2. Q1 2026: Hardware delivery, validation of workloads, performance benchmarking, security audits, and soft launch for Cocoon AI inference
3. Q2 2026: Implementation of full Cocoon AI workloads; expansion of cluster orchestration capabilities; Planned expansion with 2-4 additional clusters, subject to market conditions and initial performance validation

MARKET CONTEXT AND COMPETITIVE POSITIONING

The investment comes at an inflection point in AI infrastructure markets. According to McKinsey analysis, data center AI workload capacity will grow 3.5x between 2025 and 2030, adding 124 gigawatts of incremental capacity. However, value capture is heavily skewed toward technology and chipmakers (60% of spending) versus real estate (15%) and power (25%). AlphaTON's model captures hardware asset appreciation while generating recurring rental revenue, positioning across multiple value pools.

The U.S. government's unprecedented 10% equity stake in Intel and the characterization of AI infrastructure as "buyer of last resort" by federal policymakers signal systematic support for the sector. As Google CEO Sundar Pichai stated to the BBC, an AI infrastructure bubble burst would represent "a total market contagion event," effectively designating the sector as too integral to fail.

About AlphaTON Capital Corp. (Nasdaq: ATON)

AlphaTON Capital is a specialized digital asset company focused on developing the Telegram ecosystem and managing a strategic reserve of TON tokens. The Company implements a comprehensive M&A and treasury strategy that combines direct token acquisition, validator operations, and strategic ecosystem investments to generate sustainable returns for shareholders. Through its operations, AlphaTON Capital provides public market investors with institutional-grade exposure to the TON ecosystem and Telegram's billion-user platform while maintaining the governance standards and reporting transparency of a Nasdaq-listed company. Led by Chief Executive Officer Brittany Kaiser, Executive Chairman and Chief Investment Officer Enzo Villani, and Chief Business Development Officer Yury Mitin, the Company's activities span network validation and staking operations, development of Telegram-based applications, and strategic investments in TON-based decentralized finance protocols, gaming platforms, and business applications.

AlphaTON Capital Corp is incorporated in the British Virgin Islands and trades on Nasdaq under the ticker symbol "ATON". AlphaTON Capital, through its legacy business, is also advancing potentially first-in-class therapies that target known checkpoint resistance pathways to potentially achieve durable treatment response and improve quality of life for patients. AlphaTON Capital actively engages in the drug development process and provides strategic counsel to guide development of novel immunotherapy assets and asset combinations. To learn more, please visit https://alphatoncapital.com/.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements relate to future events or AlphaTON's future financial performance and involve known and unknown risks, uncertainties and other factors that may cause actual results to differ materially from those expressed or implied by these forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to, the development and adoption of AI technologies, cryptocurrency market volatility, regulatory developments, technical challenges in infrastructure deployment, and general economic conditions. AlphaTON undertakes no obligation to update any forward-looking statements, except as required by law.

Investor Relations:
AlphaTON Capital Corp
AlphaTON@icrinc.com
(203) 682-8200

Media Inquiries:
Richard Laermer
RLM PR
AlphaTON@rlmpr.com
(212) 741-5106 X 216

Richard Laermer
AlphaTON (at) rlmpr.com

FAQ

What is AlphaTON Capital announcing on November 26, 2025 (ATON)?

AlphaTON announced an $82.5M project to acquire and deploy a 1,000+ Nvidia B200 GPU cluster to support Cocoon AI and GPU rental services.

How is AlphaTON financing the GPU purchase for ATON?

The project is financed with $30M equity and $52.5M debt, with the debt amortizing over 36 months.

What financial returns does AlphaTON (ATON) project from the GPU infrastructure?

The company projects an IRR of 59.7%, NPV $59.6M, 5x equity multiple and $150M cash returned over five years.

What role will the GPU cluster play for Telegram’s Cocoon AI and for ATON investors?

The cluster will provide dedicated capacity for Cocoon AI and generate external revenue via CUDO’s GPU marketplace, capturing hardware economic value.

What are key operational assumptions behind ATON's project economics?

Assumptions include 90% utilization, 20% first-year price compression, 10% subsequent annual compression, and EBITDA margins of 64–73% over five years.

When will AlphaTON (ATON) deploy the GPUs and start Cocoon workloads?

Planned timeline: transaction close and initial testing in Q4 2025, hardware delivery and soft launch in Q1 2026, and full Cocoon workloads by Q2 2026.