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Hyperscale Data Subsidiary Ault Capital Group to Purchase Up to $10 Million of XRP for Expansion of its Financial Services Business

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Hyperscale Data (NYSE: GPUS) announced that its subsidiary, Ault Capital Group (ACG), plans to purchase up to $10 million worth of XRP by the end of 2025. The cryptocurrency will be held on the company's balance sheet at fair value. This strategic investment aims to support ACG's expansion into financial services beyond its current lending business.

ACG intends to leverage XRP and the XRP Ledger to develop cryptocurrency-based products on a decentralized exchange, tokenize real-world assets, and support cross-border settlements and real-time payment systems. The company views this acquisition as a strategic enhancement of liquidity and infrastructure support for blockchain-enabled financial products.

Hyperscale Data (NYSE: GPUS) ha annunciato che la sua controllata, Ault Capital Group (ACG), prevede di acquistare fino a 10 milioni di dollari in XRP entro la fine del 2025. La criptovaluta sarà detenuta nel bilancio della società a valore equo. Questo investimento strategico mira a sostenere l'espansione di ACG nei servizi finanziari oltre l'attuale attività di prestito.

ACG intende sfruttare XRP e XRP Ledger per sviluppare prodotti basati su criptovalute su una piattaforma di scambio decentralizzata, tokenizzare asset reali e supportare regolamenti transfrontalieri e sistemi di pagamento in tempo reale. L'azienda considera questa acquisizione un potenziamento strategico della liquidità e del supporto infrastrutturale per prodotti finanziari abilitati dalla blockchain.

Hyperscale Data (NYSE: GPUS) anunció que su subsidiaria, Ault Capital Group (ACG), planea comprar hasta 10 millones de dólares en XRP antes de finales de 2025. La criptomoneda se mantendrá en el balance de la compañía a valor justo. Esta inversión estratégica tiene como objetivo apoyar la expansión de ACG en servicios financieros más allá de su negocio actual de préstamos.

ACG pretende aprovechar XRP y el XRP Ledger para desarrollar productos basados en criptomonedas en un intercambio descentralizado, tokenizar activos del mundo real y respaldar liquidaciones transfronterizas y sistemas de pago en tiempo real. La empresa considera esta adquisición como una mejora estratégica en la liquidez y el soporte de infraestructura para productos financieros habilitados por blockchain.

Hyperscale Data (NYSE: GPUS)는 자회사인 Ault Capital Group (ACG)가 2025년 말까지 최대 1,000만 달러 상당의 XRP를 구매할 계획이라고 발표했습니다. 이 암호화폐는 회사의 대차대조표에 공정가치로 보유될 예정입니다. 이번 전략적 투자는 ACG가 현재 대출 사업을 넘어 금융 서비스 분야로 확장하는 데 기여하고자 합니다.

ACG는 XRP와 XRP Ledger를 활용해 분산형 거래소에서 암호화폐 기반 제품을 개발하고, 실물 자산을 토큰화하며, 국경 간 결제 및 실시간 결제 시스템을 지원할 계획입니다. 회사는 이번 인수를 블록체인 기반 금융 상품의 유동성과 인프라 지원을 강화하는 전략적 조치로 보고 있습니다.

Hyperscale Data (NYSE : GPUS) a annoncé que sa filiale, Ault Capital Group (ACG), prévoit d'acheter jusqu'à 10 millions de dollars d'XRP d'ici la fin 2025. La cryptomonnaie sera détenue au bilan de l'entreprise à sa juste valeur. Cet investissement stratégique vise à soutenir l'expansion d'ACG dans les services financiers au-delà de son activité actuelle de prêt.

ACG entend exploiter XRP et le XRP Ledger pour développer des produits basés sur la cryptomonnaie sur une plateforme d'échange décentralisée, tokeniser des actifs réels et soutenir les règlements transfrontaliers ainsi que les systèmes de paiement en temps réel. L'entreprise considère cette acquisition comme une amélioration stratégique de la liquidité et du support infrastructurel pour les produits financiers basés sur la blockchain.

Hyperscale Data (NYSE: GPUS) gab bekannt, dass seine Tochtergesellschaft Ault Capital Group (ACG) plant, bis Ende 2025 bis zu 10 Millionen US-Dollar in XRP zu erwerben. Die Kryptowährung wird zum beizulegenden Zeitwert in der Bilanz des Unternehmens gehalten. Diese strategische Investition soll die Expansion von ACG in Finanzdienstleistungen über das bisherige Kreditgeschäft hinaus unterstützen.

ACG beabsichtigt, XRP und das XRP Ledger zu nutzen, um kryptowährungsbasierte Produkte auf einer dezentralen Börse zu entwickeln, reale Vermögenswerte zu tokenisieren und grenzüberschreitende Abwicklungen sowie Echtzeit-Zahlungssysteme zu unterstützen. Das Unternehmen sieht in diesem Erwerb eine strategische Verbesserung der Liquidität und der Infrastrukturunterstützung für blockchainbasierte Finanzprodukte.

Positive
  • Strategic investment of up to $10M in XRP to expand financial services offerings
  • Successful 4-year track record in lending business provides foundation for expansion
  • Plans to develop new revenue streams through crypto-based products and tokenization
  • Integration of XRP's low-cost, fast transaction capabilities for cross-border settlements
Negative
  • Investment subject to XRP price volatility risks
  • Potential capital constraints may limit planned XRP acquisition
  • Regulatory uncertainties and potential approval requirements
  • No immediate revenue impact from the planned investment

Insights

Hyperscale Data's $10M XRP purchase signals strategic expansion into crypto-based financial services with significant balance sheet implications.

Hyperscale Data's announcement represents a significant strategic pivot toward cryptocurrency integration in its financial services arm. The planned $10 million XRP acquisition through its Ault Capital Group subsidiary marks a substantial financial commitment, especially notable as these assets will be carried at fair value on the balance sheet with changes reflected in operating expenses.

This move follows four years of lending operations and indicates a calculated expansion into more advanced financial products, including decentralized exchange offerings and tokenization of real-world assets. By selecting XRP specifically, the company is targeting a cryptocurrency with established enterprise financial use cases, particularly in cross-border settlements and payment systems where XRP's low transaction costs and speed offer practical advantages.

The accounting treatment is particularly noteworthy - carrying XRP at fair value means quarterly earnings will be directly impacted by cryptocurrency volatility. This creates a new risk vector for investors to monitor, as XRP price fluctuations will flow through to operating expenses rather than being isolated in an investment portfolio.

The company has carefully hedged this announcement with multiple caveats about potential execution risks, including XRP price volatility, capital availability constraints, and potential regulatory hurdles. This suggests awareness of both the significant upside potential and considerable risks in this strategy, particularly given the historically contentious regulatory environment surrounding XRP and Ripple Labs.

For Hyperscale Data, this represents more than a treasury diversification play - it's a fundamental infrastructure investment supporting a broader vision of blockchain-integrated financial services, positioning the company at the intersection of traditional finance and cryptocurrency innovation.

LAS VEGAS, May 28, 2025 (GLOBE NEWSWIRE) -- Hyperscale Data, Inc. (NYSE American: GPUS), a diversified holding company (“Hyperscale Data” or the “Company”), today announced that its wholly owned subsidiary, Ault Capital Group, Inc. (“ACG”) intends to purchase up to $10 million in XRP, the digital asset developed by Ripple Labs and native to the XRP Ledger, by the end of 2025. The XRP, when purchased, will be deemed a crypto asset and held on the Company’s balance sheet at fair value with changes recognized in operating expenses on the consolidated statements of operations. This strategic move is designed to support the Company’s broader expansion into financial services through ACG.

“ACG plans to expand its financial services division and broaden the services it offers beyond lending, including cryptocurrency-based products on a decentralized exchange and tokenization of real-world assets. We’ve been successful in the lending business for the past four years, and now we are looking to expand. We expect XRP to be an important part of ACG’s future in the financial services industry,” said Milton “Todd” Ault III, Executive Chairman of Hyperscale Data.

XRP is purpose-built for enterprise-grade financial use cases, offering fast, secure and low-cost transaction fees using blockchain technology — features that position it as an attractive asset for powering innovative financial services. ACG plans to leverage XRP and the XRP Ledger to support cross-border settlement, real-time payment systems, and decentralized financial applications, all designed to meet the needs of modern financial markets. The Company believes that acquiring XRP is a strategic enhancement of liquidity and provides infrastructure support for a range of blockchain-enabled financial products. It represents an important step towards integrating modern digital asset solutions into ACG’s next-generation financial services model.

Hyperscale Data notes that acquisitions of XRP are subject to various risks and uncertainties, one or more which could result in the planned acquisitions being curtailed, delayed or terminated, including, but not limited to: the volatility in XRP market price; the inability of the Company to have sufficient capital to purchase the intended amount of XRP; and regulatory challenges, consents or approvals, if necessary. The Company will continue to monitor market conditions and may increase or decrease its holdings of XRP as it deems appropriate.

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 artificial intelligence (“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 high-performance computing 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


FAQ

What is Hyperscale Data's (GPUS) plan for XRP investment?

Hyperscale Data's subsidiary Ault Capital Group plans to purchase up to $10 million worth of XRP by the end of 2025 to support its expansion into financial services.

How will GPUS use XRP in its business operations?

GPUS plans to use XRP and XRP Ledger for cross-border settlements, real-time payment systems, decentralized financial applications, and tokenization of real-world assets.

What are the risks associated with Hyperscale Data's XRP investment?

The main risks include XRP price volatility, potential capital constraints, regulatory challenges, and possible requirements for regulatory approvals.

How will the XRP purchase affect Hyperscale Data's balance sheet?

The XRP will be recorded as a crypto asset on the company's balance sheet at fair value, with changes recognized in operating expenses on consolidated statements of operations.

What is Ault Capital Group's current business model?

Ault Capital Group has been operating in the lending business for the past four years and is now expanding into broader financial services, including cryptocurrency-based products and tokenization.
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