Hyperscale Data Reports $219 Million in Assets at End of Q1 2025, Sells Minority Stake in Private Pharmaceutical Company for $4.65 Million as Part of Company Streamlining
- Sale of pharmaceutical stake generated $4.65M, representing 210% return on $1.5M investment
- Planned power capacity expansion from 30MW to 340MW positions the company for AI and HPC market growth
- Strategic focus on core data center business shows clear direction and resource optimization
- Agreement with natural gas utility for 40MW expansion achievable in shorter 18-month timeline
- Power upgrade timeline is lengthy at 44 months for main utility expansion
- Multiple contingencies and risks could delay or terminate power upgrade projects
- Significant funding required for power upgrades with no specified financing plan
- Company needs to secure easements, rights-of-way, and land rights for project completion
Insights
Hyperscale Data sells pharmaceutical stake at 3x return to focus on expanding its Michigan data center from 30MW to 340MW for AI computing.
Hyperscale Data's divestiture of its pharmaceutical minority stake for
The planned expansion of their Michigan facility from approximately 30MW to a potential 340MW capacity is particularly significant in today's AI-driven computing landscape. For context, 340MW is enough power to support roughly 85,000 high-performance GPUs running intensive AI workloads—positioning Hyperscale among mid-tier AI infrastructure providers.
However, investors should recognize substantial execution risks in the power upgrade timeline. The primary utility expansion to 300MW requires a 44-month completion timeline following authorization, while the supplementary 40MW natural gas project has an 18-month horizon. These extended timeframes create considerable market timing uncertainty, as AI computing demands are evolving rapidly.
The company's explicit acknowledgment of multiple contingencies—including financing requirements, regulatory approvals, and land rights acquisition—suggests management is being appropriately transparent about the complex hurdles ahead. The decision to exit pharmaceutical investments with a profitable return demonstrates disciplined capital allocation, though the relative scale (
Proceeds to Support Company’s Strategic Focus on Data Center Business
LAS VEGAS, June 02, 2025 (GLOBE NEWSWIRE) -- Hyperscale Data, Inc. (NYSE American: GPUS), a diversified holding company (“Hyperscale Data” or the “Company”), today announced the sale of its minority equity interest in a privately held pharmaceutical company for gross proceeds of
This transaction is consistent with the Company’s ongoing strategy to exit non-core investments and concentrate capital and resources on its primary asset—a 617,000 square foot data center located in Michigan, which is being developed to support high-performance computing (“HPC”) workloads, including artificial intelligence (“AI”) applications.
“As we streamline our operations and sharpen our focus, this sale demonstrates our commitment to unlocking value and deploying capital where we believe we have the greatest long-term opportunity,” said William B. Horne, Chief Executive Officer of Hyperscale Data. “We are firmly focused on developing our Michigan data center to meet the accelerating demand for AI infrastructure.”
In February 2025, the Company announced that its indirect, wholly owned subsidiary Alliance Cloud Services, LLC (“ACS”) had reached an agreement in principle with its primary local utility to expand the Michigan facility’s available power from approximately 30 megawatts (“MW”) to 300 MW. The completion of this power upgrade is anticipated to take 44 months from execution of a formal letter of authorization between ACS and the utility, which is currently being negotiated. In addition, the Company also announced that ACS has reached an agreement in principle with the local natural gas utility to provide an additional 40 MW. The project is expected to be completed within 18 months of the execution of definitive agreements. Combined, this expansion would bring the total expected power capacity of the data center to approximately 340 MW, positioning Hyperscale Data to host large-scale AI and HPC workloads.
The 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; 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.
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 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 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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