Hyperscale Data Reduces Debt by $30 Million, Strengthening Capital Structure to Advance AI and Bitcoin Operations

Rhea-AI Summary

Hyperscale Data (NYSE: GPUS) announced on October 9, 2025 a year-to-date reduction of approximately $30 million in consolidated non‑affiliated debt via repayments and conversions, improving leverage and liquidity. The company said the stronger balance sheet will support expansion of its Michigan AI and Bitcoin data center campus, increasing power capacity from ~30 MW to ~70 MW (targeted by Q2 2027) through new natural‑gas on‑site generation. Hyperscale also ordered 1,000 Bitmain Antminer S21+ units and plans to install up to 5,000 S21+ across ~20 MW as part of a multi‑phase upgrade to improve hash rate per watt. The company holds mined Bitcoin on its balance sheet and aims to grow its digital asset treasury.

Positive

• Reduced consolidated non‑affiliated debt by approximately $30 million year‑to‑date
• Planned power increase from ~30 MW to ~70 MW targeted by Q2 2027
• Ordered 1,000 Bitmain Antminer S21+ units; plan to install up to 5,000 across ~20 MW

Negative

• 350 MW campus expansion to ~340 MW is contingent on utility agreement, regulatory approvals, and funding
• Michigan expansion depends on new natural‑gas infrastructure for on‑site generation

Insights

Corporate Finance Analyst

Debt reduced by $30 million, strengthening liquidity to support planned AI and Bitcoin capacity expansion.

Reducing outstanding consolidated non‑affiliated debt by approximately $30 million materially lowers leverage and increases financial flexibility for the company to fund its Michigan campus expansion and equipment upgrades. The firm links this deleveraging to a mix of repayments and debt conversions and states the move improves its ability to pursue growth capital on more favorable terms.

The near‑term plan relies on increasing power from ~30 MW to ~70 MW by second quarter of 2027 via new natural‑gas infrastructure, plus an order for 1,000 Bitmain Antminer S21+ units and plans to install up to 5,000 across ~20 MW. These initiatives depend on reaching an agreement with the local utility, navigating unspecified regulatory matters, and securing appropriate funding; each is explicitly cited as a contingency. The company also retains mined Bitcoin on its balance sheet and targets a $100 million Bitcoin treasury through additional open‑market purchases.

Watch execution milestones: completion of the ~70 MW expansion by Q2 2027, utility agreement progress, funding sources for larger expansion to ~340 MW, and installation cadence for the S21+ units. Expect these items to drive near‑term capital needs and measurable effects on leverage and liquidity within the next 18 months.

LAS VEGAS, Oct. 9, 2025 /PRNewswire/ -- Hyperscale Data, Inc. (NYSE American: GPUS), a diversified holding company ("Hyperscale Data" or the "Company"), today announced that it has reduced its outstanding consolidated non-affiliated debt by approximately $30 million year-to-date. This achievement represents a substantial improvement to the Company's capital structure and financial flexibility to expand its flagship Michigan artificial-intelligence ("AI") and Bitcoin data center campus through its indirect wholly owned subsidiary, Alliance Cloud Services, LLC ("ACS").

The $30 million reduction—achieved through a combination of repayments and debt conversions—has meaningfully lowered leverage, strengthened liquidity and enhanced the Company's ability to pursue growth capital on favorable terms. This accomplishment supports Hyperscale Data's broader objective of building a financially resilient platform capable of funding large-scale infrastructure while delivering long-term value to stockholders.

"Reducing our debt by $30 million underscores our commitment to disciplined execution and financial strength," said Milton "Todd" Ault III, Founder and Executive Chairman of Hyperscale Data. "This stronger balance sheet enables us to accelerate our growth initiatives—from power expansion and equipment upgrades to onboarding hyperscale and enterprise AI customers, while also advancing our Bitcoin mining efficiency and digital asset strategy."

Strategic Alignment with Michigan Expansion

The debt reduction comes as ACS continues advancing power-capacity expansion at its 617,000-square-foot Michigan campus. The facility is being designed to support both enterprise-grade AI workloads and high-efficiency Bitcoin-mining operations in an integrated, energy-optimized environment. The Company expects to increase power capacity from approximately 30 megawatts ("MW") to approximately 70 MW, which is currently anticipated to be completed by the second quarter of 2027, through new natural-gas infrastructure enabling on-site generation.  Ultimately, subject to reaching an agreement with the local utility provider, navigating unknown regulatory challenges and securing appropriate funding, Hyperscale Data anticipates the Michigan campus could expand to approximately 340 MW of capacity.

Earlier this week, Hyperscale Data announced an order for 1,000 new Bitmain Antminer S21+ units for the Michigan facility as part of a multi-phase upgrade program to replace older Bitcoin miners with current-generation models that deliver more than double the hash rate per unit of power consumed. The Company plans to install up to 5,000 S21+ miners across approximately 20 MW of capacity, significantly enhancing its operational efficiency and Bitcoin output.

"We are aligning operational performance with a stronger financial foundation," Mr. Ault added. "By pairing disciplined balance-sheet management with strategic infrastructure and equipment investments, we are positioning Hyperscale Data to provide both AI infrastructure and digital asset mining."

Digital Asset Treasury Strategy

Consistent with its long-term vision, the Company continues to hold all Bitcoin earned from its mining operations on its balance sheet as part of its digital asset treasury strategy. Hyperscale Data also plans to supplement these holdings through regular open-market acquisitions as it advances toward its goal of establishing a $100 million Bitcoin treasury.

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, 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 currently expects the divestiture of ACG (the "Divestiture") to occur in the second quarter of 2026. 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, 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 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 on October 9, 2025 regarding debt?

Hyperscale Data announced a year‑to‑date reduction of approximately $30 million in consolidated non‑affiliated debt through repayments and conversions.

How will GPUS expand power capacity at its Michigan campus and by when?

GPUS plans to increase Michigan campus power from ~30 MW to ~70 MW, currently targeted to be completed by Q2 2027 using new on‑site natural‑gas generation.

What Bitcoin mining equipment did Hyperscale Data (GPUS) order and how many will be installed?

GPUS ordered 1,000 Bitmain Antminer S21+ units and plans to install up to 5,000 S21+ miners across approximately 20 MW of capacity.

Will Hyperscale Data (GPUS) hold the Bitcoin it mines?

Yes. The company said it will continue to hold all Bitcoin earned from mining on its balance sheet as part of its digital asset treasury strategy.

What are the main risks to GPUS's planned Michigan expansion to 340 MW?

The expansion to ~340 MW is subject to reaching an agreement with the local utility, navigating regulatory challenges, and securing appropriate funding.

How does the $30 million debt reduction affect GPUS's growth plans?

Management says the $30 million reduction strengthens liquidity and lowers leverage, enabling acceleration of power expansion, equipment upgrades, and customer onboarding.