Hyperscale Data Announces Plan to Add $20 Million in Bitcoin to Its Balance Sheet

Rhea-AI Summary

Hyperscale Data (NYSE American: GPUS) has announced plans to add $20 million in Bitcoin to its balance sheet, leveraging proceeds from its recently announced At-the-Market (ATM) offering. The company, currently valued at a $15 million market cap, believes this strategic move will provide a stabilizing foundation and highlight that its balance sheet assets exceed its trading value.

The company plans to continuously add Bitcoin to its treasury as its valuation grows, focusing on two key value drivers: Bitcoin's potential appreciation as a long-term store of value and monetization strategies including yield enhancement and collateralization. This initiative aligns with Hyperscale's broader vision to develop its Michigan-based AI data center campus, which the company believes is significantly undervalued at current share prices.

Positive

• Strategic addition of $20M in Bitcoin to strengthen balance sheet
• Potential for additional revenue through Bitcoin monetization strategies
• Lower capital raising costs through ATM offering
• Development of Michigan AI data center campus with significant growth potential

Negative

• Current market cap of $15M is below planned $20M Bitcoin investment
• Bitcoin investment subject to high volatility risks
• Strategy dependent on successful financing through ATM offering
• Potential shareholder dilution from ATM offering to fund Bitcoin purchases

Insights

Financial Strategist

Hyperscale aims to leverage Bitcoin as balance sheet asset alongside AI data center growth, despite market cap ($15M) being lower than planned Bitcoin holdings ($20M).

Hyperscale Data's announcement represents an unconventional balance sheet strategy where the company plans to add $20 million in Bitcoin assets despite having a market capitalization of only $15 million. This creates the unusual situation where their planned crypto holdings would exceed their entire market value by 33%.

The company is financing this Bitcoin acquisition primarily through an At-the-Market (ATM) stock offering, which suggests significant shareholder dilution ahead. Management positions this strategy as addressing what they perceive as a significant market undervaluation of their assets, particularly their Michigan AI data center development.

Two aspects of this announcement merit careful scrutiny: First, the company frames Bitcoin as a "stabilizing foundation" despite explicitly acknowledging its "significant volatility" - a fundamental contradiction in risk management principles. Second, while they reference "monetization strategies" including yield enhancement and collateralization, these activities introduce additional risk factors beyond simple Bitcoin price exposure.

This dual strategy - developing AI data centers while simultaneously building a Bitcoin position - represents a complex value proposition that combines two entirely different risk profiles and business models. Investors must weigh whether management has the expertise to execute successfully in both domains simultaneously, especially given that the Bitcoin holdings would significantly exceed the company's current market value.

Company Intends to Pair Its Bitcoin Holdings with Its Market Cap and Pursue Monetization Strategies

LAS VEGAS, Sept. 2, 2025 /PRNewswire/ -- Hyperscale Data, Inc. (NYSE American: GPUS), a diversified holding company ("Hyperscale Data" or the "Company"), today announced its intention to add approximately $20 million in Bitcoin to its balance sheet, subject to available financing, which the Company believes  will be, at least in part, from the use of proceeds of its recently announced At-the-Market offering of its common stock (the "ATM").

At present, Hyperscale Data's market capitalization is approximately $15 million, significantly below the Company's view of its true asset value. By adding Bitcoin to its balance sheet, Hyperscale Data believes this strategic alignment will provide a stabilizing foundation and underscore that the Company's balance sheet assets substantially exceed the current trading value of its common stock. Furthermore, the Company believes that adding Bitcoin to its balance sheet will provide stockholders with greater visibility into a growing hard asset on the Company's balance sheet and serve as an additional means of valuing the Company's common stock.

The Company intends to expedite the deployment of this strategy, with a focus on acquiring $20 million in Bitcoin as soon as financing allows. Hyperscale also expects, subject to available financing, to continually add Bitcoin to its treasury as the valuation of the Company grows, reinforcing its commitment to long-term balance sheet strength. The Company believes that this timeliness, transparency, and consistency of execution will differentiate it from many other issuers' strategies and provide enhanced value to stockholders.

Management noted that the Company sees two key drivers of value creation through this program:

1. Potential appreciation of Bitcoin as a long-term store of value: Bitcoin has outperformed many traditional assets over the past 10 years. Although Bitcoin is subject to significant volatility, the Company believes that over time Bitcoin may continue to increase in value, outperform traditional assets and serve as a compelling reserve asset; and
   
   
2. Monetization strategies for Bitcoin holdings: The Company further believes that including yield-enhancement, collateralization, and other treasury management approaches designed to generate incremental income will have a favorable impact on the price of its common stock.

"Bitcoin offers us a unique opportunity to create a reserve asset that both stabilizes our balance sheet and positions Hyperscale Data to benefit from long-term appreciation in digital assets. This program reflects our conviction that aligning with Bitcoin strengthens our ability to execute on our broader vision to lead in artificial intelligence ("AI") ready data centers" said William B. Horne, Chief Executive Officer of Hyperscale Data, who continued by stating that "The ATM represents a source of financing where the cost of raising capital is significantly lower than many other means of doing so.  The Company has outlined its plans to grow with our data center in Michigan. We believe that the Michigan data center represents the best value and the long-term growth engine of the Company, and we intend to use the proceeds in a way that allows the data center to grow into a full AI campus together with a strengthened balance sheet including Bitcoin reserves."

"Our approach is simple: hold Bitcoin as a core treasury asset, pursue monetization opportunities that can provide recurring income, and leverage this strategy alongside the buildout of our Michigan AI data center campus," said Milton "Todd" Ault III, Executive Chairman of Hyperscale Data. "We believe this dual path of value from our data center operations and value from our digital asset strategy will create a compelling long-term story for stockholders."

Hyperscale Data is currently building out its Michigan-based AI data center campus, a project the Company believes is potentially worth a substantially greater amount than its current share price reflects. Beyond this initial $20 million investment, Hyperscale intends, subject to available financing, to continue accumulating Bitcoin reserves as part of its ongoing treasury and growth strategy.

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, 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, Ault Capital Group ("ACG"), is a diversified holding company pursuing growth by acquiring undervalued businesses and disruptive technologies with a global impact.

Hyperscale Data currently expects the divestiture of ACG (the "Divestiture") to occur in the first quarter of 2026. Upon the occurrence of the Divestiture, the Company will be an owner and operator of data centers to support high-performance computing services, as well as a holder of digital assets. 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 and hotel operations. In addition, ACG is actively engaged in providing 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 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.

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SOURCE Hyperscale Data Inc.

FAQ

How much Bitcoin does Hyperscale Data (GPUS) plan to add to its balance sheet?

Hyperscale Data plans to add $20 million in Bitcoin to its balance sheet, subject to available financing through its ATM offering.

What is the current market capitalization of Hyperscale Data (GPUS)?

Hyperscale Data's current market capitalization is approximately $15 million, which the company believes is significantly below its true asset value.

How will Hyperscale Data (GPUS) monetize its Bitcoin holdings?

The company plans to pursue yield-enhancement, collateralization, and other treasury management approaches to generate incremental income from its Bitcoin holdings.

What is Hyperscale Data's (GPUS) strategy for its Michigan data center?

Hyperscale Data plans to develop its Michigan facility into a full AI campus, which they believe represents the best value and long-term growth engine for the company.

How will Hyperscale Data (GPUS) fund its Bitcoin acquisition?

The company plans to fund the Bitcoin acquisition primarily through proceeds from its recently announced At-the-Market (ATM) offering of common stock.