Hyperscale Data Sees a Potential Increase to Revenue on Growing Momentum in High-Margin Software Platform
Rhea-AI Summary
Hyperscale Data (NYSE American: GPUS) anticipates exceeding its previously guided 2025 revenue of $125-135 million, driven by strong momentum in its software license business. The company's subsidiary, Ault Capital Group, has launched pre-sales of one-time software licenses for the Ault Blockchain, attracting over 170 global affiliated salespeople within the first month.
The Ault Blockchain is expected to be operational by end-2025, with management projecting high gross margins and substantial revenue contributions. Additionally, the company plans to reconsolidate Gresham Worldwide and continues operating its Michigan data center for crypto mining, while developing AI and HPC services infrastructure for future growth.
Positive
- Potential increase to 2025 revenue guidance of $125-135 million
- Rapid expansion to 170+ global affiliated salespeople in first month
- High gross margins expected from software license business
- Planned reconsolidation of Gresham Worldwide to boost revenue
- Strategic positioning in blockchain, AI, and HPC sectors
Negative
- No significant additional revenue expected from Michigan data center in 2025
- AI and HPC initiatives still in infrastructure growth phase
- Ault Blockchain not yet operational, launch planned for end-2025
Insights
Hyperscale Data signals potential revenue growth from high-margin software licenses with rapidly expanding sales network, though actual impact remains speculative.
Hyperscale Data (NYSE American: GPUS) has indicated a potential upside to their
Reading between the lines, this announcement contains both concrete elements and aspirational projections. The company has established a sales channel and is seeing "meaningful increase in orders" for software licenses that presumably carry
- No specific revenue figures from these software license sales are disclosed
- The Ault Blockchain remains under development and won't be operational until late 2025
- The reconsolidation of Gresham Worldwide is mentioned as a revenue driver but without quantifiable metrics
- Their Michigan data center is explicitly stated to provide no significant additional revenue in 2025
This announcement appears designed to generate investor enthusiasm for Hyperscale's diversification beyond cryptocurrency mining into higher-margin software. While the rapid affiliate network growth suggests genuine market interest, investors should note the careful language around "potential increase" to guidance rather than a formal guidance revision. This indicates the company is seeing positive signals but remains cautious about formally committing to higher numbers until more orders convert to recognized revenue.
Affiliate Network Expands to over 170 Global Partners within First Month of Launch
The Company recently announced that its wholly owned subsidiary, Ault Capital Group, Inc. ("ACG") launched pre-sales of one-time software licenses to run the Ault Mining Node Software to support the Ault Blockchain, which has been under development for several years and is already generating strong demand. ACG anticipates that the Ault Blockchain will be operational by the end of 2025. In the first month since announcing pre-sales, Hyperscale Data's sales force has grown to more than 170 affiliated individual salespeople spanning multiple countries. Supported by this rapidly growing distribution network, ACG has already seen a meaningful increase in orders. Management expects these initiatives, including blockchain infrastructure and tokenization solutions, to deliver substantial revenue contributions in the years ahead, bolstered by expected high gross margins that enhance scalability and long-term profitability.
"Momentum in the development of our Ault Blockchain, coupled with the previously announced expected reconsolidation of Gresham Worldwide, Inc. ("Gresham Worldwide"), gives us confidence in both reaffirming our 2025 outlook and recognizing the potential for upside," said William B. Horne, CEO of Hyperscale Data. "With more than 170 global affiliates signed on in just the first month, demand is strong, orders are accelerating, and with very high anticipated gross margins we believe our software licenses will become a substantial contributor to future growth. Combined with the additional revenue expected from Gresham Worldwide, we are positioning Hyperscale Data to capture significant opportunities across multiple sectors."
While the Company's
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 currently expects the divestiture of ACG (the "Divestiture") to occur in the first quarter of 2026. Upon the occurrence of the Divestiture, the Company will be an owner and operator of data centers to support HPC services, as well as a holder of 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 and hotel operations. In addition, ACG is actively engaged in providing private credit and structured finance through a licensed lending subsidiary. Hyperscale Data's headquarters are located at 11411 Southern Highlands Parkway, Suite 190,
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
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SOURCE Hyperscale Data Inc.