Hyperscale Data Issues Letter to Stockholders

Hyperscale Data Issues Letter to Stockholders

Focus Will Be on AI Data Centers and Digital Asset Accumulation, Including Retaining All Mined Bitcoin

LAS VEGAS, Aug. 25, 2025 /PRNewswire/ -- Hyperscale Data, Inc. (NYSE American: GPUS), a diversified holding company ("Hyperscale Data" or the "Company"), today issued the following letter to its stockholders from its Founder and Executive Chairman, Milton "Todd" Ault III.

Dear Stockholders:

Bitcoin and Balance Sheet Strategy

To begin with, we will keep all of the Bitcoin we mine. Effective immediately, we will keep every Bitcoin we mine, which will become a significant component of our balance sheet. We no longer intend to sell any Bitcoin to cover expenses. This change in corporate policy marks the beginning of a new chapter.

Further, we are actively adding to our digital asset holdings. In addition to Bitcoin, we are building a position in XRP. Beginning September 2, 2025, we will publish weekly reports of both our Bitcoin and XRP holdings to provide complete visibility; digital assets, held transparently and securely, will form a cornerstone of long-term stockholder value.

Defining the Pure Play

When I first became involved with Hyperscale Data in 2016, the Company was very much a work in progress. We faced setbacks, made course corrections, and worked through challenging times. But we stayed the course. Over the years, we built a strong leadership team, acquired key assets and established the foundation for what Hyperscale Data is today: a company with data centers that are being transformed to support artificial intelligence ("AI") computing requirements and continuing Bitcoin mining operations, which we believe positions Hyperscale Date to create lasting value for stockholders. 

Hyperscale Data is evolving into a pure play company with two strategic pillars: (1) AI-optimized data centers; and (2) a growing amount digital asset kept on our balance sheet, which will be conducted through the Company's wholly owned subsidiary Sentinum, Inc.  ("Sentinum").

• AI Infrastructure: Our data center in our Michigan facility, which is owned by Alliance Cloud Services, LLC ("ACS"), a wholly owned subsidiary of Sentinum, is preparing to incrementally increase the power capacity from its current capacity of approximately 30 megawatts ("MW") to what we expect to become 70 MW over the next 20 months through new natural gas distribution infrastructure that will enable on-site power generation. Ultimately, we anticipate that the facility's power capacity will reach approximately 340 MW, subject to the negotiation and execution of an agreement with the local utility provider and securing appropriate funding. Sentinum is building out and developing fully operational data centers on two properties in Montana for which we have land leases and corresponding power purchase agreements. If we complete the initial phase of development of the Montana facilities, which is currently on hold, then we would expect the Montana facilities to provide up to a combined 20 MW of power. In short, we are attempting to creating a "superstructure" AI campus designed to meet surging demand from large-scale AI clients.
  
  
• Digital Asset Treasury: Our current mining run rate is approximately 190 Bitcoin annually. Instead of selling the Bitcoin that we generate from our self-mining operations, we will now begin to hold the coins we produce and report these as a separate line our balance sheet and continue to accumulate Bitcoin and XRP when opportunities arise. The strategy is straightforward; grow our infrastructure while building a reserve of premier digital assets.

This model of pairing scalable AI hosting with a transparent, accretive digital asset strategy positions Hyperscale Data for potential long-term growth.

Separation of Ault Capital Group

In contrast, Hyperscale Data's other wholly owned subsidiary, Ault Capital Group, Inc. ("ACG"), will remain a diversified holding company with exposure across lending, defense, fintech, blockchain, hospitality, and industrial services.

ACG either wholly owns or has a direct controlling interest in, among other entities:

• Circle 8 Holdco LLC, which wholly owns Circle 8 Crane Services, LLC, a crane rental and lifting solutions provider for oilfield, construction, commercial and infrastructure markets,
  
  
• askROI, Inc., which operates a unique, generative AI-driven platform, including OnlyBulls, a mobile-only app,
  
  
• Ault Markets, Inc., which wholly owns Ault DAO LLC, a decentralized autonomous organization limited liability company, which operates the Ault blockchain, a public network that, while not yet operational, is designed to provide decentralized-finance tools,
  
  
• Ault Lending, LLC, a California licensed lender,
  
  
• Ault Global Real Estate Equities, Inc., which owns and operates four hotels,
  
  
• RiskOn International, Inc., which wholly owns BitNile.com, Inc., which operates a social gaming platform, and
  
  
• TurnOnGreen, Inc., which wholly owns TOG Technologies, Inc. and Digital Power Corporation, which provide commercial electronics solutions and electric vehicle charging solutions.

In addition, Hyperscale Data recently confirmed that its defense affiliate, Gresham Worldwide, Inc. ("Gresham Worldwide"), received final court approval of its Chapter 11 plan of reorganization, clearing the path for emergence on October 1, 2025. Upon emergence, Gresham Worldwide is expected to reconsolidate as a subsidiary of ACG.

Separating these businesses will allow Hyperscale Data to be valued for what it truly is: an AI data center and digital asset company.

Leadership and Alignment

Our leadership team is fully aligned with stockholders:

• William B. Horne, CEO – leading Hyperscale Data into its next phase as a pure play AI and Bitcoin company.
  
  
• Henry Nisser, President & General Counsel – guiding us through legal and regulatory complexities.
  
  
• Kenneth S. Cragun, CFO – ensuring disciplined financial stewardship post-separation.

Ault & Company, Inc., which I control, is Hyperscale Data's largest stockholder with more than $51 million invested. We intend to remain the largest stockholder and fully aligned with stockholders for the long term.

After separation, I will focus primarily on ACG while continuing to oversee the monetization of Hyperscale Data's digital asset portfolio.

Market Valuation

During my 35 years of professional experience, either working on Wall Street or with public companies, I have seen markets both reward and misprice companies. As I write this, Hyperscale Data's market capitalization is approximately $16 million. In my judgment, this valuation is deeply disconnected from reality.

Given our recent announcement affirming full-year 2025 revenue guidance of $125 million to $135 million, our most recent quarterly report for the six months ended June 30, 2025, reflecting total assets of $214 million, and total stockholder's equity of $8 million, the market has yet to recognize the Company's potential value, but we believe it will.

Our plan is simple:

1. Build world-class AI infrastructure,
   
   
2. Grow our digital asset treasury, and
   
   
3. Report with transparency each week.

By executing on these priorities, we believe Hyperscale Data's true value will become impossible for the market to ignore.

Looking Forward

Our mission is clear: Expand the capacity of our AI data centers, mine Bitcoin efficiently, hold digital assets in treasury, and report to stockholders with transparency. This combination of scalable infrastructure plus a growing digital asset base gives Hyperscale Data a strong foundation to enhance our value.

Markets may undervalue us today, but we are confident that disciplined execution of this strategy will lead to significant long-term growth for our stockholders.

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, 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 high-performance computing 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, 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 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.

View original content to download multimedia:https://www.prnewswire.com/news-releases/hyperscale-data-issues-letter-to-stockholders-302537341.html

SOURCE Hyperscale Data Inc.