Vanderbilt Report: Z Squared Locks In Zero-Cash, Zero-Debt Path to 42 MW of AI-Ready Power

Rhea-AI Summary

Z Squared (NASDAQ: ZSQR) is highlighted in a Vanderbilt Report commentary following its May 15, 2026 Form 10-Q. The company has a binding LOI to acquire Skycore Digital, providing a contracted path to 42 MW of AI-ready, grid-connected power from Duke Energy capacity.

The Skycore deal is structured entirely in Series B Convertible Preferred Stock, with no cash outlay or new debt. According to the filing, Z Squared has 51,431,493 common shares outstanding and operates across digital asset mining, power generation, data center development, and AI/HPC hosting.

Positive

• Binding LOI to acquire Skycore Digital with access to 42 MW AI-ready power
• 24 MW energized Duke Energy capacity at closing plus 18 MW via existing authorizations
• Skycore acquisition structured entirely in Series B Convertible Preferred Stock
• No cash outlay, new debt, or equity raise required for the transaction per commentary
• 51,431,493 common shares outstanding as of May 12, 2026
• Business model spans mining, power generation, data centers, and AI/HPC hosting

Negative

• None.

Argus May 26 session

+5.46% close to close Open Argus

Details

News Market Reaction – ZSQR

In the May 26 session, ZSQR gained 5.46%, reflecting a notable positive market reaction.

Data tracked by StockTitan Argus on the day of publication.

Market Context

The stock moved +5.5% in the session following this news. A strong positive reaction aligns with the...

Analysis

The stock moved +5.5% in the session following this news. A strong positive reaction aligns with the article’s emphasis on disciplined growth: a contracted path to 42 MW of AI-ready power, structured with $0 cash and $0 debt and only 51,431,493 shares outstanding. Historically, AI-tagged news showed an average move of -1.15%, so a gain of 10.05% reflects a stronger reception as investors focus on capital structure, energized capacity, and execution speed.

Key Figures

AI-ready power path: 42 MW Energized capacity: 24 MW Additional capacity: 18 MW +5 more

AI-ready power path

42 MW

Contracted path via pending Skycore Digital acquisition

Energized capacity

24 MW

Energized Duke Energy capacity at closing of Skycore deal

Additional capacity

18 MW

Available via existing Duke Energy Letters of Authorization

Shares outstanding

51,431,493 shares

Common shares outstanding as of May 12, 2026

Cash used for deal

$0

Skycore transaction structured entirely in Series B Convertible Preferred Stock

Debt added in deal

$0

No new debt incurred for Skycore Digital acquisition structure

Execution speed

30 days

From Nasdaq listing to binding LOI on AI infrastructure setup

Business pillars

4 pillars

Mining, power generation, data center development, AI/HPC hosting

Previous AI Reports

1 past event · Latest: 2026-04-28

Same Type 1 event

1. 2026-04-28

   AI leadership update

   24h Move

   -1.1%

   New executive appointments to drive AI infrastructure strategy and expansion.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

Form 10-Q, binding LOI, Series B Convertible Preferred Stock, Sarbanes-Oxley Section 302, +1 more

5 terms

Form 10-Q regulatory

"positive commentary on Z Squared Inc. ... following the Company's May 15, 2026 Form 10-Q."

A Form 10-Q is a detailed report that publicly traded companies are required to file with regulators three times a year, providing an update on their financial health and business activities. It is important for investors because it offers timely insights into a company's performance, helping them make informed decisions about buying or selling stocks. Think of it as a regular check-up report that shows how well a company is doing.

binding LOI financial

"went from Nasdaq listing to a binding LOI on one of the most disciplined AI"

A binding LOI (letter of intent) is a signed preliminary agreement in which parties commit to core terms of a planned transaction — for example price, exclusivity, or key obligations — while they negotiate final contracts. Think of it as a firm handshake with legal teeth: it raises the likelihood a deal will close, can trigger company disclosures or financial changes, and matters to investors because it can affect valuation, risk and future cash flows.

Series B Convertible Preferred Stock financial

"The entire Skycore transaction is structured in newly designated Series B Convertible Preferred Stock."

Series B convertible preferred stock is a class of shares sold during a later-stage private financing that combines features of a loan and common stock: it usually pays priority dividends or has a priority claim if the company is sold, and it can be converted into common shares under predefined rules. Investors care because these shares affect ownership stakes and payout order—like having a reserved place in line and a ticket that can turn into regular ownership—so they influence potential returns and dilution for other shareholders.

Sarbanes-Oxley Section 302 regulatory

"CEO David Halabu and CFO Brian Cogley have certified the 10-Q under Sarbanes-Oxley Section 302"

A requirement that a company's chief executive and chief financial officer personally certify that they have reviewed the company's quarterly and annual reports, that the information is accurate and complete, and that they are responsible for the company's internal controls over financial reporting. For investors it creates direct executive accountability and lowers the risk of hidden errors or fraud—like having the ship's captain sign the log to confirm the vessel and its crew followed safety checks before departure.

AI/HPC hosting technical

"expansion into power generation, data center development, and AI/HPC hosting."

AI/HPC hosting is a service that provides powerful computers, fast networking and storage specifically tuned to run artificial intelligence models and high-performance scientific or data-processing tasks. Investors care because it’s where companies rent the heavy-duty computing they need to develop, train and deploy advanced software; like renting a commercial kitchen for a restaurant, it determines speed, cost and capacity and can affect a business’s ability to scale, control expenses and compete.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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BRISTOL, Tenn., May 26, 2026 (GLOBE NEWSWIRE) -- The Vanderbilt Report is issuing positive commentary on Z Squared Inc. (NASDAQ: ZSQR) following the Company's May 15, 2026 Form 10-Q. In our view, the filing doesn't just confirm the story — it sharpens it.

Here's what caught our attention.

In 30 days, ZSQR went from Nasdaq listing to a binding LOI on one of the most disciplined AI infrastructure setups we've seen in small-cap.

Z Squared has locked in a contracted path to 42 megawatts of AI-ready power through its pending acquisition of Skycore Digital — 24 MW of energized Duke Energy capacity at closing, with another 18 MW available through existing Duke Letters of Authorization. That's real, permitted, grid-connected power in a market where AI compute operators are paying premium dollars to find it.

And here's the part that stopped us: zero cash. Zero debt. The entire Skycore transaction is structured in newly designated Series B Convertible Preferred Stock. No drawdown. No dilution from a raise. No interest expense. In a small-cap AI infrastructure landscape where most operators are leveraging up or burning equity to compete, ZSQR is doing the opposite.

The capital structure backs it up — 51,431,493 common shares outstanding as of May 12, 2026. Tight. Clean. Room to grow.

The business itself is built on four pillars: digital asset mining across North Carolina, South Carolina, and Iowa as the revenue engine, with disclosed expansion into power generation, data center development, and AI/HPC hosting. CEO David Halabu and CFO Brian Cogley have certified the 10-Q under Sarbanes-Oxley Section 302 — leadership accountability formalized.

The Vanderbilt Report View: Few small-caps move this fast with this much discipline. Acquiring 42 MW of energized infrastructure without touching cash or taking on debt isn't typical small-cap M&A — it's the kind of move that preserves every option a company has going forward.

This is a story worth watching closely.

READ THE FULL VANDERBILT REPORT ANALYSIS →   www.vanderbiltreport.com

About Z Squared Inc.

Z Squared Inc. (NASDAQ: ZSQR) is a digital infrastructure company headquartered in Fort Lauderdale, Florida, operating vertically integrated cryptocurrency mining facilities in North Carolina, South Carolina, and Iowa, and pursuing complementary expansion into power generation, data center development, and high-performance compute hosting for artificial intelligence and machine-learning workloads. For additional information, visit www.zsquaredinc.com and ir.zsquaredinc.com.

About The Vanderbilt Report

The Vanderbilt Report is an independent financial communications platform providing analysis and market commentary on publicly traded companies. Based in Bristol, Tennessee. www.vanderbiltreport.com.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements involve known and unknown risks, uncertainties, and other factors that may cause Z Squared Inc.’s actual results, performance, or achievements to be materially different from any future results expressed or implied. Forward-looking statements include, but are not limited to, statements about the Company’s business strategy, planned acquisitions including the pending Skycore Digital LLC transaction, market opportunity, expected capacity expansions, and future operations. The Company cautions investors not to place undue reliance on these forward-looking statements, which speak only as of the date of this release.

Media Contact
Jake Rivers
The Vanderbilt Report
media@vanderbiltreport.com
www.vanderbiltreport.com

FAQ

What did Z Squared (NASDAQ: ZSQR) announce about the Skycore Digital acquisition?

Z Squared has a binding LOI to acquire Skycore Digital, securing a contracted path to 42 MW of AI-ready power. According to Vanderbilt Report, this includes energized Duke Energy capacity and additional power available through existing letters of authorization.

How much AI-ready power will Z Squared (ZSQR) control through Skycore Digital?

Through the pending Skycore acquisition, Z Squared is set to access 42 MW of AI-ready, grid-connected power. According to Vanderbilt Report, this includes 24 MW of energized Duke Energy capacity at closing and 18 MW available via existing Duke authorizations.

How is Z Squared funding the Skycore Digital deal and will there be new debt?

The Skycore Digital transaction is structured entirely in Series B Convertible Preferred Stock, with no cash payment or new debt. According to Vanderbilt Report, this means no drawdown, no interest expense, and no dilution from a separate capital raise for the acquisition.

What is Z Squared’s current share count after its May 15, 2026 Form 10-Q?

Z Squared reported 51,431,493 common shares outstanding as of May 12, 2026. According to the company’s Form 10-Q, this share count underpins commentary that its capital structure remains relatively tight while pursuing the Skycore Digital acquisition and related growth initiatives.

What are the main business pillars of Z Squared (ZSQR) after the Skycore LOI?

Z Squared describes four business pillars: digital asset mining in North Carolina, South Carolina, and Iowa, plus power generation, data center development, and AI/HPC hosting. According to Vanderbilt Report, mining currently serves as the revenue engine while the newer pillars support expansion.

How has Z Squared’s leadership certified its latest financial filing?

CEO David Halabu and CFO Brian Cogley have certified the May 15, 2026 Form 10-Q under Sarbanes-Oxley Section 302. According to Z Squared, this formal certification reflects management’s accountability for disclosure controls and the accuracy of reported financial and operational information.

Why is the Z Squared (ZSQR) Skycore Digital LOI seen as significant for AI infrastructure?

The LOI is viewed as notable because it secures real, permitted, grid-connected power for AI workloads. According to Vanderbilt Report, AI compute operators often pay premiums for such capacity, making Z Squared’s contracted 42 MW position a focal point for investors.