Hyperscale Data Inc. Stock Price, News & Analysis

Hyperscale Data (NYSE: GPUS) announced it expects to recognize a one-time gain of approximately $17.5 million in Q1 2025 due to the deconsolidation of Avalanche International. The deconsolidation will result in the elimination of $17.5 million in current liabilities, significantly improving the company's working capital and stockholders' equity.

CEO William B. Horne emphasized that this development will help strengthen the company's position as a publicly listed entity on the NYSE American. The company plans to provide updates on additional structural changes in the coming months.

Hyperscale Data (NYSE: GPUS) has announced the successful completion of its first Nvidia GPU installation for a Silicon Valley-based cloud services provider at its Michigan data center. This deployment is part of the company's strategic transformation into an AI and high-performance computing (HPC) facility.

The Michigan data center currently operates at 28 megawatts with plans to expand to 340 megawatts over the next several years to accommodate advanced AI and HPC workloads. CEO William B. Horne highlighted this achievement as a significant step in the company's transition to becoming a pure play data center business focused on serving the AI industry's evolving needs.

Hyperscale Data (NYSE American: GPUS) has announced two significant dividend declarations. The Board approved a monthly cash dividend of $0.2708333 per share for the 13.00% Series D Cumulative Redeemable Perpetual Preferred Stock, with a record date of March 31, 2025, and payment date of April 10, 2025.

Additionally, the company declared a previously deferred dividend of $0.20833 per share for the 10.00% Series E Cumulative Redeemable Perpetual Preferred Stock for February 2025. However, the Board has elected to defer the March 2025 dividend payment for Series E Preferred Stock. Under the certificate of designations, the company can defer up to 12 consecutive monthly dividend payments for Series E Preferred Stock, with such deferrals not considered missed as they accrue for future payment.

Hyperscale Data (NYSE American: GPUS) has received a listing extension from the NYSE American until June 18, 2026 based on its submitted compliance plan. The extension allows the company time to meet the NYSE American Company Guide requirements, specifically achieving stockholders' equity of $6.0 million or more to address Sections 1003(a)(ii) and (iii) of the Listing Standards.

During this extension period, the company will undergo periodic NYSE reviews. The company faces potential delisting if it fails to make progress according to the plan or doesn't regain compliance by the extension deadline.

Hyperscale Data (NYSE: GPUS) reported preliminary unaudited financial results for 2024, with total revenue of $108.8 million and pro forma revenue of $150.4 million including Giga-tronics.

Revenue breakdown:

• Sentinum: $30.6M from crypto mining, $0.9M from real estate leases
• Ault Capital Group (ACG): $77.3M from energy, fintech, hotels, and tech investments
• Giga-tronics (deconsolidated): $41.6M from defense operations

The company is transforming into a pure-play AI data center operator by end-2025, planning to divest ACG. Their 34.5-acre Michigan data center facility aims to increase power capacity from 30MW to 340MW, focusing on high-performance computing and AI infrastructure. Giga-tronics filed for Chapter 11 bankruptcy in August 2024, with potential reconsolidation pending successful restructuring.

Hyperscale Data (NYSE: GPUS) announced that its subsidiary Alliance Cloud Services (ACS) has reached an agreement to add 40 megawatts (MW) of power capacity to its Michigan data center through natural gas utility. This expansion would increase the facility's total power capacity from 30 MW to 340 MW, building upon the previously announced 300 MW expansion.

The new 40 MW natural gas-powered addition is expected to be completed within 18 months of finalizing definitive agreements and will be delivered faster than the main grid utility expansion. The company is also exploring options for an additional 85 MW capability.

This expansion aims to meet the growing demand for high-performance computing (HPC) services supporting AI infrastructure. The project faces various risks including funding requirements, regulatory approvals, and potential delays.

Hyperscale Data (NYSE American: GPUS) has engaged Northland Capital Markets to explore strategic alternatives for its Michigan Data Center. Northland brings significant expertise, having advised on over $6 billion of high-performance computing data center transactions in the past year.

The Michigan Facility, situated on 34.5 acres, currently has approximately 30 megawatts of available power. The company has reached an agreement in principle with the local utility to increase power capacity to approximately 300 megawatts. Strategic options under consideration include raising debt or equity for expansion, forming joint ventures, development, monetization, or strategic partnerships.

The power upgrade project faces various risks, including potential failure to execute a definitive agreement, insufficient funding, regulatory hurdles, and challenges in obtaining necessary easements and land rights.

Hyperscale Data (NYSE: GPUS) announced that its subsidiary Alliance Cloud Services (ACS) has reached an agreement in principle with a local utility to increase its Michigan data center power capacity from 30 megawatts (MW) to 300 MW. The power upgrade completion is expected to take 44 months from the execution of a formal Letter of Authorization (LOA), which is currently under negotiation.

The company is transitioning its existing 30MW capacity from Bitcoin mining to High-Performance Computing (HPC) services supporting AI infrastructure. The expansion aims to meet growing demand for AI and HPC services, marking a significant step in the company's transformation into a pure-play data center operator.

The project completion is subject to various risks, including failure to execute a definitive agreement, insufficient funding, regulatory approval issues, and inability to obtain necessary easements and land rights.

Hyperscale Data (NYSE: GPUS) has announced two significant dividend declarations. The Board approved a monthly cash dividend of $0.2708333 per share for its 13.00% Series D Cumulative Redeemable Perpetual Preferred Stock, with a record date of February 28, 2025, and payment date of March 10, 2025.

Additionally, the company declared a previously deferred dividend of $0.20833 per share for its 10.00% Series E Cumulative Redeemable Perpetual Preferred Stock for January 2025, while electing to defer the February 2025 dividend. The company notes that it can defer up to 12 consecutive monthly dividend payments on Series E Preferred Stock without being considered missed, as these are cumulative dividends that accrue for future payment.