Hyperscale Data Enters into Settlement Agreement that is Expected to Result in Defense Affiliate Gresham Worldwide Exiting Chapter 11 on or Before October 1, 2025; Updates 2025 Revenue Guidance to $125–$135 Million
- Expected addition of $40 million in annualized revenue from Gresham Worldwide post-bankruptcy
- Increased 2025 revenue guidance to $125-135 million
- Immediate revenue contribution of $10 million expected in Q4 2025
- Settlement agreement enables Gresham Worldwide to emerge from bankruptcy as a subsidiary
- Gresham Worldwide's emergence from bankruptcy is subject to court approval
- Current Chapter 11 status of Gresham Worldwide indicates previous financial distress
- Settlement agreement completion timeline extends to October 1, 2025
Insights
Hyperscale Data's settlement enables Gresham Worldwide's exit from bankruptcy, adding $40M in revenue and improving 2025 guidance.
This bankruptcy settlement agreement represents a significant financial restructuring milestone for Hyperscale Data. The company will reconsolidate Gresham Worldwide once it emerges from Chapter 11, transitioning from a majority economic interest to full subsidiary status. The timing is strategically planned, with exit expected on or before October 1, 2025.
The financial impact is substantial and quantifiable. Gresham's addition will contribute up to $10 million in consolidated revenue for Q4 2025 alone. On an annualized pro forma basis, this adds approximately $40 million to Hyperscale's revenue stream. This restructuring has prompted management to raise full-year 2025 guidance from $115-125 million to $125-135 million.
The pro forma figures presented (while non-GAAP) indicate an even more ambitious outlook, with total revenue potentially reaching $155-165 million on an annualized basis including Gresham's full contribution. This settlement effectively transforms a distressed asset into a revenue-generating subsidiary, enabling Hyperscale to capture the full financial benefit of Gresham's operations rather than just its majority economic interest.
This resolution required negotiation with Gresham's senior secured noteholders and remains subject to court approval, highlighting the complex financial and legal maneuvers involved in restructuring a defense business through bankruptcy proceedings. The transaction represents a structured approach to maintaining operational continuity while addressing debt obligations.
Gresham Worldwide’s Emergence Expected to Add Approximately
LAS VEGAS, June 09, 2025 (GLOBE NEWSWIRE) -- Hyperscale Data, Inc. (NYSE American: GPUS), a diversified holding company (“Hyperscale Data” or the “Company”), today announced that the Company and Gresham Worldwide, Inc. (“Gresham Worldwide”), currently an affiliated defense business in which the Company holds a majority economic interest, have entered into a comprehensive settlement agreement (the “Settlement Agreement”) with Gresham Worldwide’s senior secured noteholders in its Chapter 11 bankruptcy proceedings. While the Settlement Agreement is subject to court approval, Gresham Worldwide is expected to emerge from bankruptcy as a subsidiary of the Company on or before October 1, 2025.
Upon Gresham Worldwide’s emergence from bankruptcy, Hyperscale Data expects to reconsolidate Gresham Worldwide’s financial results into its financial statements and anticipates that Gresham Worldwide will contribute up to an additional
In connection with the anticipated reconsolidation, Hyperscale Data has raised its full-year 2025 GAAP basis revenue guidance to a range of
| Revenue Guidance | Low End | High End | ||
| Previously issued guidance | $ | 115,000,000 | $ | 125,000,000 |
| Pro forma annualized contribution from Gresham Worldwide | 40,000,000 | 40,000,000 | ||
| Pro forma total revenue | $ | 155,000,000 | $ | 165,000,000 |
“The settlement marks a turning point for Gresham Worldwide and reflects the hard work and collaboration of all parties involved,” said Milton “Todd” Ault III, Executive Chairman of Hyperscale Data. “We expect Gresham Worldwide’s emergence from bankruptcy to create substantial value for Hyperscale Data through meaningful revenue contribution and operational momentum as we move forward. We look forward to supporting Gresham Worldwide’s long-term growth and success.”
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 artificial intelligence (“AI”) ecosystems and other industries. Hyperscale Data’s other wholly owned subsidiary, Ault Capital Group, Inc. (“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 high-performance computing services, though it may at that time continue to mine Bitcoin. 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
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