Hyperscale Data Currently Mining Approximately $26 Million Annually

Rhea-AI Summary

Hyperscale Data (NYSE American: GPUS) reported that its subsidiary Alliance Cloud Services (ACS) mined approximately 20 Bitcoin in November 2024, achieving an annualized run rate of approximately $26 million in gross Bitcoin mining revenue, based on a Bitcoin price of $106,000.

The company highlighted that Bitcoin's 140% appreciation in 2024 has significantly outpaced the 51% increase in mining difficulty, leading to improved margins. The current mining rate represents more than three times the company's market capitalization on an annualized basis.

Positive

• Mining operations generating approximately $26M annualized gross revenue
• Bitcoin price appreciation (140%) outpacing mining difficulty increase (51%)
• Improving profit margins due to favorable Bitcoin price-to-difficulty ratio
• Mining revenue rate exceeding 3x company's market capitalization

Negative

• Operations subject to high Bitcoin price volatility risk
• Performance dependent on mining difficulty levels and power availability

Insights

Financial Analyst

The mining operation's $26 million annualized revenue run rate, based on $106,000 Bitcoin price, represents a significant revenue stream relative to the company's $7.7 million market cap. The favorable spread between Bitcoin's 140% appreciation and mining difficulty increase of 51% in 2024 indicates expanding profit margins. However, investors should note these projections are highly dependent on volatile Bitcoin prices and mining difficulty levels. The current revenue multiple suggests potential undervaluation, though this must be weighed against operational costs and sustainability of current Bitcoin prices. Monthly production of 20 Bitcoin demonstrates operational scale, but efficiency metrics and cost structure details would be needed for a complete profitability assessment.

Crypto Market Analyst

The divergence between Bitcoin's price appreciation and mining difficulty growth creates an unusually favorable mining environment. The 89% spread (140% - 51%) indicates miners are capturing higher margins than typical market conditions would suggest. Mining 20 Bitcoin monthly is a respectable output that positions the company to capitalize on potential further Bitcoin price appreciation. However, the sustainability of these conditions is uncertain, as difficulty typically catches up to price increases as more miners enter the market. The $106,000 Bitcoin price used for calculations, while reflecting current market conditions, underscores the importance of maintaining efficient operations to remain profitable during potential price corrections.

LAS VEGAS, Dec. 17, 2024 (GLOBE NEWSWIRE) -- Hyperscale Data, Inc. (NYSE American: GPUS), a diversified holding company (“Hyperscale Data,” or the “Company”), today announced an update from its wholly owned subsidiary Alliance Cloud Services, LLC (“ACS”). ACS mined approximately 20 Bitcoin during November 2024 resulting in an annualized run rate of approximately $26 million in gross Bitcoin mining revenue. This approximate gross Bitcoin mining revenue figure is based upon a Bitcoin price of $106,000.

Hyperscale Data Executive Chairman Milton “Todd” Ault III stated, “We are extremely pleased with our current mining operations in Michigan and will continue to refine our operations to focus on efficiency. The recent increase in the price of Bitcoin has outpaced the increase in the mining difficulty level. In fact, during 2024 Bitcoin has appreciated approximately 140% whereas mining difficulty has only increased approximately 51%. As a result, we are now experiencing improving margins at ACS. Further, at the current levels, we are mining more than three times the current market cap of the Company on an annualized basis.”

Hyperscale Data notes that all estimates and other projections are subject to the volatility in Bitcoin market price, the fluctuation in the mining difficulty level, the ability to provide the necessary power for miners, and other factors that may impact the results of Bitcoin mining production or operations.

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.

Hyperscale Data is transitioning from a diversified holding company pursuing growth by acquiring undervalued businesses and disruptive technologies with a global impact to becoming solely an owner and operator of data centers to support high performance computing services. Through its wholly and majority-owned subsidiaries and strategic investments, Hyperscale Data owns and operates a data center at which it mines digital assets and offers colocation and hosting services for the emerging artificial intelligence ecosystems and other industries. It also provides, through its wholly owned subsidiary, Ault Capital Group, Inc., 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, Hyperscale Data 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 240, Las Vegas, NV 89141.

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

FAQ

How many Bitcoin did Hyperscale Data (GPUS) mine in November 2024?

Hyperscale Data's subsidiary Alliance Cloud Services mined approximately 20 Bitcoin during November 2024.

What is Hyperscale Data's (GPUS) current annualized Bitcoin mining revenue?

Based on a Bitcoin price of $106,000, Hyperscale Data's annualized gross Bitcoin mining revenue is approximately $26 million.

How much has Bitcoin mining difficulty increased for GPUS in 2024?

Mining difficulty has increased approximately 51% during 2024, while Bitcoin price has appreciated approximately 140%.

How does GPUS's mining revenue compare to its market capitalization?

According to the company, they are mining more than three times their current market capitalization on an annualized basis.

Where are Hyperscale Data's (GPUS) mining operations located?

Hyperscale Data's mining operations are located in Michigan.