Ault & Company Has Invested $55 Million in Capital to Hyperscale Data

Ault & Company also has a right to buy up to $96 million more in series H preferred stock, subject to stated conditions.

Rhea-AI Summary

Ault & Company has invested $55 million in Hyperscale Data (GPUS) through purchases of convertible preferred stock.

The figure excludes open-market common-stock purchases. Ault & Company and its affiliates beneficially own approximately 62% of Hyperscale Data. Its Michigan subsidiary, Alliance Cloud Services, signed a customer agreement for an initial 20 megawatts (MW) of AI compute capacity, with a customer right to expand to 52 MW. Hyperscale Data expects revenue above $1.2 billion from the initial deployment only if the agreement remains in effect for its maximum 20-year term. If the customer exercises its expansion right and the additional capacity remains contracted for the applicable maximum term, potential total revenue could exceed $3.0 billion.

Hyperscale Data reported approximately $360 million in assets as of June 30, 2026, and $34.8 million in revenue for that quarter. Its management estimates the Michigan campus could be worth $750 million to $1.25 billion; that range is not an independent appraisal.

Positive

• $55 million invested through convertible preferred stock
• Executed customer agreement covers an initial 20 MW

Negative

• None.

News Explained

Ault & Company says it may invest further through a right to buy up to $96 million of Series H convertible preferred stock, subject to conditions; this is a purchase right, not an additional investment the release reports as completed.

Argus 15 min delay 81 alerts

+36.77% vs previous close $0.24 last price 20.6x rel. volume Open Argus

Details

Market move: GPUS +36.77% vs previous close. convertible preferred investment

+38.8% Peak in 9 min

$0.18 $0.26 Day Range

$32.34M Market Cap

On Sep 25, the day this news came out, the latest delayed price for GPUS is 36.77% above the previous close. Argus tracked a peak move of +38.8% during the session. Our momentum scanner has recorded 81 alerts for this stock so far that day. The latest delayed price is $0.24. Relative volume is exceptionally heavy at 20.6x the average.

Data tracked by StockTitan Argus (15 min delayed). Upgrade to Gold for real-time data.

Market Context

A Form 4 reported Ault & Company purchased 100,000 shares on Sep 23, a separate common-stock exposur...

Analysis

A Form 4 reported Ault & Company purchased 100,000 shares on Sep 23, a separate common-stock exposure by the same investor making this convertible-preferred investment.

Key Figures

Capital invested: $55 million Beneficial ownership: Approximately 62% Additional preferred-stock purchase right: Up to $96 million +5 more

Capital invested

$55 million

Invested directly in Hyperscale Data through convertible preferred stock

Beneficial ownership

Approximately 62%

Ault & Company and its affiliates' current ownership of Hyperscale Data

Additional preferred-stock purchase right

Up to $96 million

Right to purchase additional Series H convertible preferred stock, subject to conditions

Initial MSA capacity

20 MW

Initial AI compute capacity under the Michigan facility agreement

Potential expanded capacity

52 MW

Total deployment if the customer exercises its expansion right

Potential initial-deployment revenue

More than $1.2 billion

If the MSA remains in effect for its maximum 20-year term

Potential total contract revenue

More than $3.0 billion

Conditional on expansion and the additional capacity remaining contracted for its applicable maximum term

Michigan campus valuation assessment

Approximately $750 million to $1.25 billion

Management's assessment; not an independent appraisal or assurance of a transaction

Historical Context

2 past events · Latest: Sep 17

2 events

1. Sep 17

   Michigan AI update

   24h Move

   +2.1%

   Reported more than $70 million invested and a 20 MW MSA, with expansion potential to 52 MW.

2. Sep 14

   Campus valuation update

   24h Move

   +7.8%

   Set a $750 million minimum campus-sale threshold and cited potential valuation up to $1.25 billion.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

convertible preferred stock, master services agreement, schedule 13d/a

3 terms

convertible preferred stock financial

"through the purchase of convertible preferred stock."

Convertible preferred stock is a special class of company shares that pays priority, usually fixed, payments to holders and can be exchanged later for a set number of common shares. It matters to investors because it combines steady income and added protection with the chance to share in a company’s upside; think of it as a hybrid between a bond that pays regularly and an option to convert into growth-oriented stock, where the conversion rules influence both potential gains and how much common shareholders’ ownership may be reduced.

master services agreement financial

"executed a master services agreement ("MSA") for an initial"

A master services agreement is a standing contract that sets the main terms, responsibilities, pricing framework and processes for future work between two parties, allowing individual projects or orders to be added later without renegotiating core terms. For investors, it signals predictability and reduced legal friction around revenue streams and costs—like a subscription plan for services that makes future income and obligations easier to forecast and value.

schedule 13d/a regulatory

"reference the Schedule 13D/A Amendment No. 19"

A Schedule 13D/A is an amended disclosure filed with regulators by an investor who already reported owning more than 5% of a company’s shares and needs to update their original filing. Think of it as a public status update that tells markets whether the investor’s ownership, plans, or source of funds have changed; such updates matter because they can signal a push for control, major strategic moves, or increased pressure on management, which can affect stock prices.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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Ault & Company Beneficially Owns Approximately 62% of Hyperscale Data and Believe a Significant Disconnect Exists Between Hyperscale Data's Market Capitalization and the Value of Its Assets

LAS VEGAS, Sept. 25, 2026 /PRNewswire/ -- Ault & Company, Inc. ("Ault & Company"), a private holding company controlled by Milton "Todd" Ault III, today announced that Ault & Company has invested $55 million of capital directly into Hyperscale Data, Inc., an NYSE American listed company ("Hyperscale Data"), through the purchase of convertible preferred stock. Such figure doesn't include funds expended by Ault & Company or any of its affiliates in purchasing Hyperscale Data common stock in open market purchases.

Ault & Company and its affiliates currently beneficially own approximately 62% of Hyperscale Data. For further details on Ault & Company's ownership of Hyperscale Data, please reference the Schedule 13D/A Amendment No. 19, filed with the U.S. Securities and Exchange Commission on September 15, 2026 by Ault & Company and its affiliates.

Ault & Company believes there is an extraordinary disconnect between Hyperscale Data's current public market valuation and the value of the assets and businesses owned by the Hyperscale Data.

Ault & Company believes the following Hyperscale Data assets and opportunities support its long-term investment thesis:

Michigan AI data center. Hyperscale Data has reported that it has invested more than $70 million into the Michigan facility owned and operated by its wholly owned subsidiary, Alliance Cloud Services, LLC ("ACS"). ACS has executed a master services agreement ("MSA") for an initial 20 megawatts ("MW") of critical artificial intelligence ("AI") compute capacity. The customer has the right to expand the deployment to a total of 52 MW.

Long-term contract potential. Hyperscale Data expects revenue from the initial 20 MW deployment to exceed $1.2 billion if the MSA remains in effect for its maximum 20-year term. If the customer exercises its expansion right and the additional capacity remains contracted for the applicable maximum term, total potential contract revenue could exceed $3.0 billion. The contemplated 52 MW deployment could represent less than 20% of the approximately 340 MW of total potential capacity that ACS believes can be ultimately available.  Hyperscale Data has advised that the development of any capacity beyond the initial 20 MW covered by the MSA is subject to financing, regulatory approvals, engineering, utility agreements, infrastructure availability, customer demand and other conditions. There can be no assurance that additional capacity will be developed, financed, contracted or placed into service.

Potential value of the Michigan campus. Hyperscale Data management has stated that it presently believes the Michigan campus could support a valuation of approximately $750 million to $1.25 billion. Management of Hyperscale Data has set $750 million as the minimum valuation at which it presently believes a sale would merit serious consideration. The range is management's assessment, not an independent appraisal or an assurance that a transaction could occur at either amount.

Reported asset base. Hyperscale Data reported approximately $360 million of total assets as of June 30, 2026, reflecting its Michigan investment, operating businesses and other holdings.

Operating businesses and strategic assets. Hyperscale Data reported $34.8 million of consolidated revenue for the quarter ended June 30, 2026. Its interests include defense and aerospace, crane rental, hotels, commercial lending, blockchain technology and software, in addition to its Michigan AI data center.

Bitcoin and cash. As of September 13, 2026, Hyperscale Data reported approximately $51 million of Bitcoin, cash and restricted cash.

"We have committed substantial capital to Hyperscale Data because we believe in the value of what it owns and the opportunities ahead," said Mr. Ault, Chief Executive Officer of Ault & Company and Executive Chairman of Hyperscale Data. "The Michigan campus has an executed customer agreement, significant capital invested and the potential to expand. Management believes that the campus could support a valuation of $750 million to $1.25 billion. Beyond Michigan, Hyperscale Data has established operating businesses and other strategic assets. As its largest stockholder, Ault & Company, together with its affiliates, is focused on supporting Hyperscale in the work needed to develop these assets and demonstrate their value over time."

Ault & Company expects to continue evaluating additional investments in Hyperscale Data, including its right to purchase up to an additional $96 million of series H convertible preferred stock, subject to market conditions, applicable securities laws and other considerations.  This press release is for informational purposes only and shall not constitute an offer to buy or sell common stock or any other securities.

About Ault & Company, Inc.

Ault & Company, Inc. is a private holding company founded and controlled by Milton "Todd" Ault III. Ault & Company invests in public and private businesses across a variety of industries and seeks to create long-term value through active ownership, capital allocation and strategic development.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of applicable federal securities laws. 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.

These forward-looking statements include, among other matters, statements regarding the potential value of Hyperscale Data and its assets, the Michigan AI data center campus, expected revenue and cash flow under the MSA, potential expansion of the Michigan facility, future power capacity, management's valuation estimates, Hyperscale Data's financial guidance, future investments by Ault & Company and its affiliates and potential efforts to realize or unlock value from Hyperscale Data's businesses and assets.

Forward-looking statements are based upon current expectations, estimates and assumptions and are subject to significant risks and uncertainties. Actual results could differ materially from those expressed or implied by such statements.

The approximately $1.2 billion MSA revenue figure assumes that the initial 20 MW deployment continues throughout the maximum 20-year term. The potential greater than $3.0 billion figure assumes, among other matters, that the customer exercises its expansion right to 52 MW and that the expanded capacity remains in service throughout the applicable maximum term. There can be no assurance that such extensions or expansion will occur.

Similarly, the estimated valuation range by Hyperscale Data's management for the Michigan facility of approximately $750 million to $1.25 billion represents its current opinion based upon presently available information and does not constitute an independent appraisal, fairness opinion, offer to purchase or sell any asset, or assurance that a transaction could be completed at any particular valuation.

Development of additional capacity at the Michigan facility is subject to financing, regulatory approvals, engineering requirements, utility agreements, infrastructure availability, customer demand and numerous other conditions.

Readers should review Hyperscale Data's filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K and the risk factors contained therein.

Forward-looking statements speak only as of the date they are made, and Ault & 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.

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SOURCE Ault & Company

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What would Hyperscale Data need to expand its Michigan data center beyond the initial 20 MW?

Development beyond the initial 20 MW is subject to financing, regulatory approvals, engineering, utility agreements, infrastructure availability and customer demand, among other conditions. There is no assurance that additional capacity will be developed, financed, contracted or placed into service.

Can Ault & Company make another investment in Hyperscale Data?

Ault & Company has the right to purchase up to an additional $96 million of series H convertible preferred stock. It expects to continue evaluating additional investments, subject to market conditions, applicable securities laws and other considerations.

How much Bitcoin and cash did Hyperscale Data report as of September 13, 2026?

Hyperscale Data reported approximately $51 million of Bitcoin, cash and restricted cash combined as of September 13, 2026.