Hyperscale Data Highlights AI Infrastructure Growth and Corporate Transition in Stockholder Letter
Hyperscale Data (NYSE American: GPUS) has outlined its strategic vision in a stockholder letter, highlighting the potential of its Michigan data center facility. The company plans to expand the facility's power capacity from 30 MW to 340 MW through agreements with local utilities, positioning it for AI and HPC infrastructure opportunities.
The company announced two significant changes: its planned separation from Ault Capital Group by year-end 2025, and the upcoming leadership transition where founder Milton Ault III will step down, with CEO William Horne assuming the Chairman position. The company is actively pursuing hosting agreements similar to Applied Digital's recent $7 billion CoreWeave contract, targeting partnerships with well-capitalized companies in the AI infrastructure space.
Hyperscale Data (NYSE American: GPUS) ha illustrato la sua visione strategica in una lettera agli azionisti, evidenziando il potenziale del suo centro dati in Michigan. L'azienda prevede di espandere la capacità energetica della struttura da 30 MW a 340 MW tramite accordi con le utility locali, posizionandosi per opportunità nell'infrastruttura AI e HPC.
La società ha annunciato due cambiamenti importanti: la separazione prevista da Ault Capital Group entro la fine del 2025 e il prossimo cambio di leadership con il fondatore Milton Ault III che si ritirerà, mentre l'amministratore delegato William Horne assumerà il ruolo di Presidente. L'azienda sta attivamente cercando accordi di hosting simili al recente contratto da 7 miliardi di Applied Digital con CoreWeave, puntando a collaborazioni con società ben capitalizzate nel settore dell'infrastruttura AI.
Hyperscale Data (NYSE American: GPUS) ha presentado su visión estratégica en una carta a los accionistas, destacando el potencial de su centro de datos en Michigan. La empresa planea ampliar la capacidad energética de la instalación de 30 MW a 340 MW mediante acuerdos con las compañías de servicios locales, posicionándose para oportunidades en infraestructura de IA y HPC.
La compañía anunció dos cambios importantes: su separación planificada de Ault Capital Group para finales de 2025 y la próxima transición de liderazgo, donde el fundador Milton Ault III se retirará y el CEO William Horne asumirá el cargo de Presidente. La empresa está buscando activamente acuerdos de alojamiento similares al reciente contrato de 7 mil millones de Applied Digital con CoreWeave, apuntando a asociaciones con compañías bien capitalizadas en el espacio de infraestructura de IA.
Hyperscale Data (NYSE American: GPUS)는 주주 서한을 통해 미시간 데이터 센터 시설의 잠재력을 강조하며 전략적 비전을 발표했습니다. 회사는 지역 전력 회사와의 협약을 통해 시설의 전력 용량을 30MW에서 340MW로 확장할 계획으로, AI 및 HPC 인프라 기회를 준비하고 있습니다.
회사는 두 가지 주요 변화를 발표했습니다: 2025년 말까지 Ault Capital Group과의 분리 계획과 창립자 밀턴 얼트 3세가 물러나고 CEO 윌리엄 혼이 이사회 의장직을 맡는 리더십 전환입니다. 회사는 Applied Digital의 최근 70억 달러 규모 CoreWeave 계약과 유사한 호스팅 계약을 적극적으로 추진하며, AI 인프라 분야에서 자본력이 탄탄한 기업들과의 파트너십을 목표로 하고 있습니다.
Hyperscale Data (NYSE American : GPUS) a présenté sa vision stratégique dans une lettre aux actionnaires, mettant en avant le potentiel de son centre de données du Michigan. L'entreprise prévoit de passer la capacité énergétique de l'installation de 30 MW à 340 MW grâce à des accords avec les services publics locaux, se positionnant pour des opportunités dans l'infrastructure IA et HPC.
L'entreprise a annoncé deux changements majeurs : sa séparation prévue d'Ault Capital Group d'ici la fin 2025 et la prochaine transition de leadership, avec le fondateur Milton Ault III qui se retirera, tandis que le PDG William Horne assumera la présidence. L'entreprise recherche activement des accords d'hébergement similaires au récent contrat de 7 milliards de dollars d'Applied Digital avec CoreWeave, visant des partenariats avec des sociétés bien capitalisées dans le domaine de l'infrastructure IA.
Hyperscale Data (NYSE American: GPUS) hat in einem Aktionärsschreiben seine strategische Vision dargelegt und das Potenzial seiner Datenzentrale in Michigan hervorgehoben. Das Unternehmen plant, die Leistungskapazität der Anlage von 30 MW auf 340 MW zu erhöhen durch Vereinbarungen mit lokalen Versorgungsunternehmen, um sich für Chancen im Bereich KI- und HPC-Infrastruktur zu positionieren.
Das Unternehmen kündigte zwei bedeutende Veränderungen an: die geplante Trennung von der Ault Capital Group bis Ende 2025 sowie den bevorstehenden Führungswechsel, bei dem Gründer Milton Ault III zurücktritt und CEO William Horne den Vorsitz übernimmt. Das Unternehmen verfolgt aktiv Hosting-Vereinbarungen ähnlich dem kürzlich abgeschlossenen 7-Milliarden-Dollar-Vertrag von Applied Digital mit CoreWeave und strebt Partnerschaften mit finanziell starken Unternehmen im KI-Infrastruktur-Bereich an.
- Planned expansion of Michigan facility power capacity from 30 MW to 340 MW
- Agreement in principle with utilities for significant power upgrades
- Strategic positioning in the growing AI and HPC infrastructure market
- Potential for long-term hosting agreements similar to Applied Digital's $7B contract
- Project completion timeline extends to 44 months for main power upgrade
- Significant capital investment required for facility upgrades
- Multiple execution risks including funding needs and regulatory approvals
- Current market valuation deemed significantly undervalued by management
Insights
Hyperscale Data plans 340MW data center expansion, offering significant AI infrastructure opportunity despite execution risks in competitive market.
The Michigan facility expansion from 30MW to 340MW represents a substantial growth opportunity in the high-demand AI infrastructure market. The company cites Applied Digital's
The expansion timeline is notable: 44 months for the main 300MW utility power upgrade plus 18 months for an additional 40MW from natural gas. This staggered implementation approach balances near-term capacity growth with longer-term scale. The 617,000-square-foot facility provides ample physical space for this expansion.
However, several critical execution risks exist: First, the power agreements remain in principle only, without finalized terms. Second, the company will need significant capital to fund these upgrades. Third, the competitive AI infrastructure landscape is rapidly evolving with numerous providers racing to secure hyperscale clients.
The corporate separation from Ault Capital Group by year-end 2025 will create a focused, pure-play AI infrastructure company. This strategic specialization could attract investors seeking direct exposure to the AI infrastructure sector without the complexity of Ault's diverse holdings. The leadership transition from Todd Ault to William Horne maintains continuity while allowing specialized management focus.
The press release reveals a compelling but capital-intensive growth strategy centered on AI infrastructure development. While specific financial metrics are limited, the reference to Applied Digital's
The company faces a significant funding challenge to execute this expansion. The press release explicitly acknowledges the risk of "inability to raise sufficient funds" for power upgrades. Given the substantial capital requirements for data center infrastructure, equity dilution or debt financing will likely be necessary.
The planned corporate separation from Ault Capital Group should create clearer financial reporting and potentially reduce the conglomerate discount currently applied to the stock. This reorganization addresses what management describes as a "significant undervaluation" of their business.
Investors should note the extended timeline for realizing this growth potential. With power upgrade completion estimates of 18-44 months plus additional time for tenant acquisition and revenue generation, this represents a multi-year investment proposition. The "8 to 12 years" mentioned for revenue growth further emphasizes the long-term nature of this strategy.
Given current market demand for AI compute resources and potential partnership revenues, the strategic direction appears sound, though successful execution remains the critical variable in bridging the valuation gap management has identified.
Hyperscale Data Sees Growth Opportunity and Undervalued Asset in Michigan Data Center, which Has the Potential to Expand to 340 MW
LAS VEGAS, June 26, 2025 (GLOBE NEWSWIRE) -- Hyperscale Data, Inc. (NYSE American: GPUS), a diversified holding company (“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,
As the Founder and Executive Chairman of Hyperscale Data, I want to share important updates on our strategic direction and the substantial opportunities we believe lie ahead.
Undervalued Opportunity in a Booming Sector
Recent market activity highlights the substantial value potential of our Michigan data center facility (the “Michigan Facility”). We have seen recent transactions, such as Applied Digital Corporation (“Applied”) securing a long-term hosting contract with CoreWeave which is expected to generate over
We are actively pursuing similar hosting agreements and believe our Michigan Facility would be highly attractive to top tier hyperscale tenants seeking long-term leases if we meet our objective of scaling our Michigan Facility to 340 MW of power, as discussed below. Our discussions have included well-capitalized companies in the industry, and we are confident in our ability to secure strategic partnerships that could deliver meaningful revenue growth over the next 8 to 12 years.
We believe our 617,000-square-foot Michigan Facility, which we are targeting to scale up to 340 MW of power, represents a highly strategic and significantly undervalued asset for supporting large-scale AI and HPC workloads.
In February 2025, our indirect, wholly owned subsidiary, Alliance Cloud Services, LLC (“ACS”), reached an agreement in principle with its primary local utility to expand available power from approximately 30 MW to 300 MW. Completion of this upgrade is expected to take approximately 44 months from the execution of a formal letter of authorization, which is currently under negotiation.
Additionally, ACS has reached an agreement in principle with the local natural gas utility to supply an extra 40 MW of power. This portion of the project is expected to be completed within 18 months of executing definitive agreements. In total, these upgrades would expand the facility’s capacity to approximately 340 MW, positioning Hyperscale Data to serve as a major AI and HPC infrastructure hub.
Strategic Separation and Leadership Transition
We intend to complete our previously announced separation from Ault Capital Group, Inc. (“ACG”) by year-end 2025. After the separation, Hyperscale Data will operate as a standalone, publicly traded infrastructure company focused on delivering AI and digital asset compute solutions.
Following the separation of ACG, I will step away from Hyperscale Data to focus almost exclusively on leading ACG and its growing portfolio of businesses, which include private credit, AI software, social gaming, equipment rental, aerospace and defense, industrial, automotive, medical/biopharma, and hospitality operations.
Upon my departure, William Horne, our Chief Executive Officer, is expected to continue in his current role and assume the position of Chairman of the Board. Mr. Horne has been instrumental in driving our operational progress and strategic vision, and I am confident in his leadership as Hyperscale Data enters its next chapter.
Bridging the Valuation Gap
We believe the market significantly undervalues our business, particularly given the transformative potential of our Michigan Facility. As our strategy advances and the AI infrastructure market continues to evolve, we expect the gap between our intrinsic value and current market capitalization to narrow, creating meaningful long-term value for our stockholders.
That said, our strategy is not without risk. Successful execution will require considerable capital investment and the ability to secure long-term partnerships with leading technology firms. Completion of the power upgrades is subject to a number of risks and uncertainties, one or more which could result in the project being curtailed, delayed or terminated, including, but not limited to: failure to agree upon terms and execute definitive agreements; the inability of the Company or ACS to raise sufficient funds to pay for the power upgrades and other expenditures; failure to obtain regulatory consents and approvals; the inability to obtain sufficient easements, rights-of-way and land rights necessary to the work to be performed, and other presently unforeseen events or conditions.
In Closing
Thank you for your continued support and confidence in our vision. We remain committed to delivering long-term value through strategic execution and disciplined investment in next-generation infrastructure.
Sincerely,
Milton “Todd” Ault III
Founder and Executive Chairman
Hyperscale Data, Inc.
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 AI ecosystems and other industries. Hyperscale Data’s other wholly owned subsidiary, 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 HPC services, though it may at that time continue to operate in the digital asset space as described in the Company’s filings with the SEC. 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
FAQ
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