Hyperscale Data Executive Chairman Issues Letter to Stockholders

Hyperscale Data’s chairman outlines large AI data center contract potential, 2027 financial guidance and the planned 2027 divestiture of Ault Capital Group.

Rhea-AI Summary

Hyperscale Data (GPUS) released a letter from Executive Chairman Milton "Todd" Ault III asserting the company is dramatically undervalued and highlighting key contracts, segment performance and planned corporate actions.

The company operates an AI data center in Michigan under a master services agreement with a California-based neocloud provider for 20 MW over an initial 10-year term, with two five-year extension options. If held for the full maximum term, this contract is expected to generate more than $1.2 billion in revenue. The customer also holds a right to an additional 32 MW, which, if exercised within the first two years and maintained through the extensions, would bring total expected contract revenue to over $3.0 billion.

For the first six months of 2026, the defense segment generated about $23.8 million of revenue, lending and trading via Ault Lending about $9.2 million, crane rental and industrial services about $22.1 million, and hotel and real estate operations about $9.7 million.

The company has issued preliminary 2027 guidance of $300–$350 million in consolidated revenue and $60–$80 million in adjusted EBITDA. Ault, who beneficially owns a majority of the company on an as-converted basis, states that he intends to buy GPUS shares in the open market when legally permitted. Hyperscale Data also reiterates that it currently expects to divest Ault Capital Group (ACG) in 2027 via exchange of Series F Exchangeable Preferred Stock into ACG Class A and Class B common shares.

Positive

• AI data center MSA expected to generate over $1.2 billion if held for the maximum term, with optional expansion bringing total expected contract revenue above $3.0 billion.
• Segment revenues H1 2026: defense ~$23.8 million, lending ~$9.2 million, crane and industrial services ~$22.1 million, hotel and real estate ~$9.7 million.
• 2027 preliminary guidance: consolidated revenue of $300–$350 million and adjusted EBITDA of $60–$80 million.
• Chairman ownership and buying intent: Executive Chairman beneficially owns a majority of the company on an as-converted basis and intends to purchase shares in the open market when permitted.
• Planned 2027 ACG divestiture via exchange of 1,000,000 Series F Exchangeable Preferred shares into ACG Class A and Class B common stock for participating holders.

Negative

• None.

News Explained

No separation is completed: ACG shares would be available only to Series F holders who surrender into the planned 2027 exchange.

Hyperscale Data issued a stockholder letter that keeps the ACG divestiture in the planned 2027 timeframe rather than presenting it as completed; ACG shares would go only to Series F Preferred Stock holders who surrender those shares in the exchange.

The proposed structure is a voluntary exchange of Series F Preferred Stock for ACG Class A and Class B common shares, so receiving an ownership stake in ACG depends on participating in the exchange rather than simply holding the Company's common stock.

The letter describes Executive Chairman Milton Ault's open-market purchases as intended and subject to legal and company restrictions; context records show Ault purchased $42,000 of shares on September 2, 2026 and $107,999 on September 1, 2026, while CEO William Horne purchased $100,000 on September 2, 2026.

The material milestone is the future exchange offer: its completion would determine which Series F holders receive ACG shares and become ACG shareholders.

Market reaction after 2027 guidance update: GPUS +4.03%

+4.03% $0.21 8.3x vol

15m delay

+4.03% Vs previous close

+4.3% Peak in 1 min

$0.21 Last Price

$0.20 $0.23 Day Range

$19.06M Market Cap

8.3x Rel. Volume

Following this news, GPUS has gained 4.03%, reflecting a moderate positive market reaction. Argus tracked a peak move of +4.3% during the session. Our momentum scanner has triggered 17 alerts so far, indicating notable trading interest and price volatility. The stock is currently trading at $0.21. Trading volume is exceptionally heavy at 8.3x the average, suggesting very strong buying interest.

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

Market Context

Recent insider records show 551,740 shares bought versus 1,000 sold during the analyzed period. That...

Analysis

Recent insider records show 551,740 shares bought versus 1,000 sold during the analyzed period. That activity adds alignment context to the chairman’s letter, while the effective resale registration remains a risk factor to monitor.

Key Figures

MSA revenue: in excess of $1.2 billion Expanded MSA revenue: in excess of $3.0 billion Initial deployment: 20 megawatts +5 more

8 metrics

MSA revenue in excess of $1.2 billion 20 MW deployment over the Maximum Term

Expanded MSA revenue in excess of $3.0 billion Additional 32 MW option exercised through the Maximum Term

Initial deployment 20 megawatts Executed MSA with a California-based neocloud provider

Initial MSA term 10 years Two five-year extension options also provided

Defense revenue approximately $23.8 million First six months of 2026

2027 revenue guidance $300 million to $350 million Consolidated revenue

2027 adjusted EBITDA guidance $60 million to $80 million Adjusted earnings before interest, taxes, depreciation, and amortization

Beneficial ownership majority of the Company Executive Chairman ownership on an as-converted basis

Historical Context

5 past events · Latest: Sep 02 (Positive)

Pattern 5 events

Date	Event	Sentiment	24h Move	Catalyst
Sep 02	AI contract update	Positive	-17.1%	Michigan Bitcoin mining ceased to prepare for a 20 MW AI data-center deployment
Sep 01	Revenue growth report	Negative	-17.1%	Revenue growth coincided with widened losses and increased research and development spending
Sep 01	Bitcoin treasury sale	Negative	-14.6%	Approximately 65 Bitcoin were sold to generate funding for Michigan data-center development
Aug 26	Defense order announcement	Positive	-7.5%	New defense-sector orders increased Gresham Worldwide backlog to approximately $53.7 million
Aug 25	Bitcoin treasury update	Positive	-14.5%	Subsidiaries reported holding 278.0314 Bitcoin valued at approximately $21.6 million

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

Pattern Detected

All five recent news events were followed by negative 24-hour reactions, including announcements containing positive contract, revenue-growth, or order information.

Key Terms

master services agreement, neocloud provider, as-converted basis, adjusted earnings before interest, taxes, depreciation, and amortization

4 terms

master services agreement financial

"an executed master services agreement (the "MSA") with a California-based neocloud"

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.

neocloud provider technical

"agreement (the "MSA") with a California-based neocloud provider"

A neocloud provider is a technology company that offers next-generation cloud computing services built around modern, software-defined infrastructure, often emphasizing cloud-native tools (containers, serverless), automation, multi- or hybrid-cloud management, and support for edge or AI workloads. For investors, a neocloud provider matters because it competes in fast-growing parts of the cloud market and its business model, pricing, and customer adoption determine revenue growth and margins much like a utility upgrading to smarter, more flexible services — think of it as the difference between old power lines and a smart grid.

as-converted basis financial

"on an as-converted basis, I beneficially own a majority of the Company"

As-converted basis means counting securities that can become common stock—like convertible bonds or preferred shares—as if they already were common shares when calculating totals such as shares outstanding, ownership percentages, or per-share metrics. Investors use it to see the potential dilution and the “what-if” size of the shareholder base; it’s like imagining all restaurant coupons have been redeemed so you know how crowded the table could become and how slices of the pie would shrink.

adjusted earnings before interest, taxes, depreciation, and amortization financial

"of adjusted earnings before interest, taxes, depreciation, and amortization"

Adjusted earnings before interest, taxes, depreciation, and amortization (adjusted EBITDA) is a measure of a company’s operating profit that starts with EBITDA and then removes or adds back items management considers nonrecurring, noncash, or unrelated to core operations (for example restructuring costs, one‑time gains or stock‑based compensation). It matters to investors because it aims to show the business’s underlying cash‑generating performance, like looking at a car’s running costs after stripping out unusual repairs, but the specific adjustments can vary between companies.

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

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LAS VEGAS, Sept. 3, 2026 /PRNewswire/ -- Hyperscale Data, Inc. (NYSE American: GPUS), an artificial intelligence ("AI") data center company anchored by Bitcoin ("Hyperscale Data" or the "Company"), today issued the following letter to its stockholders from its Founder and Executive Chairman, Milton "Todd" Ault III.

Dear Stockholders:

I want to be very clear: I believe Hyperscale Data is dramatically undervalued, and I do not believe the current market capitalization comes close to recognizing the value of the businesses, assets and opportunities that exist inside this Company.

I believe stockholders need to re-examine Hyperscale Data and look at what we own and operate.

This is not simply an AI data center company.

Yes, we have the Michigan AI data center (the "Facility"), and an executed master services agreement (the "MSA") with a California-based neocloud provider (the "Customer"), which provides for the deployment of 20 megawatts ("MW"), has an initial term of 10 years with two five-year extension options that may be exercised by the Customer (collectively, the "Maximum Term"). If exercised for the Maximum Term, the MSA is expected to generate in excess of $1.2 billion in revenue. The MSA provides the Customer with a right to an additional 32 MW of critical AI compute capacity which, if exercised within the first two years of the initial term and continues through the two five-year extension options, is expected to result in total contract revenue in excess of $3.0 billion.

That opportunity alone is substantial.

But what I believe the market is missing is that the Facility is only one part of Hyperscale Data.

Hyperscale Data, through Ault Capital Group, Inc. ("ACG") and its subsidiaries, also has a crane rental and industrial services business, hotel and real estate operations, defense businesses, a financial services platform, private credit and structured finance operations through Ault Lending, LLC ("Ault Lending"), digital assets and additional operating businesses and investments.

The current valuation does not adequately reflect the value of those businesses.

Look at the numbers.

Our defense segment generated approximately $23.8 million of revenue during the first six months of 2026, representing substantial year-over-year growth.

Our lending and trading activities, through Ault Lending, generated approximately $9.2 million of revenue during the first six months of 2026.

Our crane rental and industrial services business generated approximately $22.1 million of revenue during the first six months of 2026. Our hotel and real estate operations generated approximately $9.7 million of revenue during the same period.

These are real businesses. They have real assets. They generate real revenue. And in my opinion, the market is giving Hyperscale Data nowhere near appropriate credit for them.

The Company has publicly provided preliminary guidance for 2027 of $300 million to $350 million in consolidated revenue and $60 million to $80 million in adjusted earnings before interest, taxes, depreciation, and amortization.

Despite this, the public-market valuation today bears little relationship to the potential earnings power and underlying assets of this enterprise. Accordingly, I believe that stockholders should seriously re-examine Hyperscale Data; the disconnect is simply extraordinary.

I understand that markets determine prices. I also understand that management ultimately has to execute. We will be judged on that execution.

But at today's valuation, I believe the market has fundamentally misunderstood what Hyperscale Data owns, what it is building and what this enterprise has the potential to become.

My response is not merely to talk about it.

Subject to applicable securities laws, Company trading policies, blackout periods and other legal restrictions, I intend to purchase shares in the open market when I am legally permitted to do so.

I am the Executive Chairman. Directly and through my affiliated entities, on an as-converted basis, I beneficially own a majority of the Company. I know these businesses. I know the assets. I know what our management teams are working to accomplish.

I believe Hyperscale Data is worth significantly more than the value the market is ascribing to it today.

Stockholders do not have to agree with me.

But I strongly encourage them to look again at the facts, look at the SEC filings, look at the businesses we own, look at the MSA and look at our publicly announced 2027 financial guidance.

I have done that analysis for myself and that is why I am buying.

Sincerely,

Milton "Todd" Ault III

Founder & Executive Chairman, Hyperscale Data, Inc.

This statement is not an offer to sell, or a solicitation of an offer to buy, any securities. Investors should review Hyperscale Data's filings with the Securities and Exchange Commission before making any investment decision.

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 that offers colocation and hosting services for the emerging AI ecosystems and other industries. Hyperscale Data's other wholly owned subsidiary, ACG, is a hybrid private equity firm and operating company that acquires, finances, builds and actively manages businesses across financial services, digital assets, industrial services, hospitality, defense technologies and other sectors.

Hyperscale Data currently expects the divestiture of ACG (the "Divestiture") to occur in 2027. Upon the occurrence of the Divestiture, the Company would be an owner and operator of data centers to support high-performance computing services, as well as a holder of the 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, equipment rental services, defense/aerospace, industrial, automotive and hotel operations. In addition, ACG is actively engaged in private credit and structured finance through Ault Lending, LLC, 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 shareholders 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

What did Hyperscale Data (GPUS) announce in the September 3, 2026 stockholder letter?

The Executive Chairman issued a letter stating he believes Hyperscale Data is dramatically undervalued, highlighting a large AI data center contract, 2026 segment revenues, 2027 financial guidance, his intention to buy GPUS shares when legally permitted, and the expected 2027 divestiture of Ault Capital Group (ACG).

What are the key terms and revenue expectations of Hyperscale Data’s AI data center MSA for GPUS?

The Michigan AI data center has a master services agreement with a California-based neocloud provider for 20 MW over a 10-year term, plus two five-year extensions. If held for the full maximum term, it is expected to generate over $1.2 billion in revenue, with an additional 32 MW option that could lift total contract revenue above $3.0 billion.

How did Hyperscale Data’s major business segments perform in the first half of 2026 for GPUS?

In the first six months of 2026, the defense segment generated approximately $23.8 million of revenue, lending and trading through Ault Lending about $9.2 million, crane rental and industrial services about $22.1 million, and hotel and real estate operations about $9.7 million.

What 2027 financial guidance did Hyperscale Data (GPUS) provide in the letter?

The company has publicly provided preliminary 2027 guidance of $300 million to $350 million in consolidated revenue and $60 million to $80 million in adjusted EBITDA, which management contrasts with what it describes as a public-market valuation that does not reflect this potential.

What does the Executive Chairman of Hyperscale Data plan to do regarding GPUS share purchases?

The Executive Chairman, who beneficially owns a majority of Hyperscale Data on an as-converted basis, states that, subject to securities laws, company trading policies, blackout periods and other legal restrictions, he intends to purchase GPUS shares in the open market when he is legally permitted.

What is the planned Ault Capital Group (ACG) divestiture and how does it affect Hyperscale Data GPUS shareholders?

Hyperscale Data currently expects the divestiture of Ault Capital Group (ACG) to occur in 2027. The divestiture will take place through the voluntary exchange of 1,000,000 shares of Series F Exchangeable Preferred Stock, issued on December 23, 2024, for ACG Class A and Class B common stock. Only Series F holders who surrender their shares in the exchange offer, and do not properly withdraw, will receive ACG shares.

What businesses does Hyperscale Data (GPUS) operate beyond its AI data center?

Through Ault Capital Group and its subsidiaries, Hyperscale Data has crane rental and industrial services, hotel and real estate operations, defense businesses, a financial services platform, private credit and structured finance via Ault Lending, digital assets and additional operating businesses and investments. These operate alongside its AI-focused data center activities.