Strategic Alternatives Include a Sale for Cash and Strategic Partnerships, Among Other OptionsMore Than $3 Billion of Potential Contract Value Represents Approximately 20% of Contemplated Capacity of the Michigan Data

Strategic Alternatives Include a Sale for Cash and Strategic Partnerships, Among Other OptionsMore Than $3 Billion of Potential Contract Value Represents Approximately 20% of Contemplated Capacity of the Michigan Data Center, Leaving Approximately 80% Available for Future DevelopmentCompany Has Begun Discussions With a Major Investment Banking FirmLAS VEGAS, Aug. 11, 2026 /PRNewswire/ -- <a xmlns="http://www.w3.org/1999/xhtml" href="https://edge.prnewswire.com/c/link/?t=0&amp;l=en&amp;o=4749829-1&amp;h=3701589210&amp;u=https%3A%2F%2Fhyperscaledata.com%2F&amp;a=Hyperscale+Data%2C+Inc." target="_blank" rel="nofollow">Hyperscale Data, Inc.</a> (NYSE:<a class="ticker" href="https://www.benzinga.com/quote/GPUS">GPUS</a>), an artificial intelligence (&#34;AI&#34;) data center company anchored by Bitcoin (&#34;Hyperscale Data&#34; or the &#34;Company&#34;), announced today that its Board of Directors is considering a variety of options to maximize stockholder value and has initiated a comprehensive review of strategic alternatives, with particular focus on the Company&#39;s data center operations.
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The Board believes the Company&#39;s current public market valuation does not adequately reflect the value of the Company&#39;s assets, contractual opportunities and businesses.The strategic review will consider a range of alternatives, including a potential sale or lease of a portion or all of the Company&#39;s data center for cash, a strategic investment or joint venture or continued ownership and development of the assets, among other measures.The Company has begun discussions with a major investment banking firm regarding these strategic alternatives.There is no predetermined outcome, and there can be no assurance that the review will result in any transaction.Michigan Data Center OpportunityThe strategic review follows significant progress at the Company&#39;s Michigan artificial intelligence and high-performance computing data center.The Company&#39;s indirect, wholly owned subsidiary, Alliance Cloud Services, LLC, has entered into a long-term Master Services Agreement with a California-based neocloud provider for an initial deployment of approximately 20 megawatts (&#34;MW&#34;) of critical AI compute capacity. The Company expects the initial deployment to represent approximately $1.2 billion in contractual value over its term. The agreement provides for potential expansion to approximately 52 MW, which, if exercised and successfully deployed, could increase total contract value to more than $3.0 billion.The Company has previously discussed the potential long-term development of the Michigan data center to support more than 300 MW of total power capacity, subject to financing, regulatory approvals, infrastructure availability, customer demand and other conditions.Milton &#34;Todd&#34; Ault III, Executive Chairman of Hyperscale Data, stated, &#34;We believe the Michigan data center has become an extraordinarily important asset for Hyperscale Data. Our initial 20 MW services agreement is expected to represent approximately $1.2 billion in contractual value over its term, with expansion rights that could potentially increase total contract value to more than $3 billion. I believe the market is missing the scale of what remains. That potential contract value represents only approximately 20% of the contemplated capacity of the Michigan campus, leaving approximately 80% available for additional customers and future development.&#34;We do not believe the public market is properly recognizing this opportunity in the current valuation of Hyperscale Data. That is why the Board is considering all options.&#34;We could retain and continue developing the data center, bring in a major strategic or institutional partner, lease or sell a portion or all of the data center business for cash, separate the business into an independent company, among other possibilities.&#34;There is no predetermined outcome. Our objective is simple: maximize stockholder value. If strategic or financial parties place a materially different value on these assets than the value currently reflected in our public market capitalization, we believe the Board has a responsibility to understand that disparity and determine whether there is a transaction capable of crystallizing that value for stockholders.&#34;Strategic ReviewThe Board will evaluate potential transactions against the long-term economics of retaining and continuing to develop the Company&#39;s data center operations.Any potential cash transaction would provide the Board with additional capital allocation alternatives, which could include strengthening the Company&#39;s balance sheet, reducing debt, investing in its remaining businesses, repurchasing shares, making distributions to stockholders or other uses as determined by the Board.The strategic review may also consider the Company&#39;s broader corporate structure and whether additional actions could improve the market&#39;s ability to recognize the value of the Company&#39;s individual businesses and assets.The Board has established no timetable for completing the review. The Company does not intend to provide updates unless and until the Board approves a specific transaction or determines that additional disclosure is appropriate or required.There can be no assurance that the strategic review will result in any transaction or that any transaction, if completed, will increase stockholder value.For more information on Hyperscale Data and its subsidiaries, Hyperscale Data recommends that stockholders, investors and any other interested parties read Hyperscale Data&#39;s public filings and press releases available under the Investor Relations section at <a xmlns="http://www.w3.org/1999/xhtml" href="https://edge.prnewswire.com/c/link/?t=0&amp;l=en&amp;o=4749829-1&amp;h=3109397566&amp;u=https%3A%2F%2Fhyperscaledata.com%2F&amp;a=hyperscaledata.com" target="_blank" rel="nofollow">hyperscaledata.com</a> or available at <a xmlns="http://www.w3.org/1999/xhtml" href="https://edge.prnewswire.com/c/link/?t=0&amp;l=en&amp;o=4749829-1&amp;h=2145723714&amp;u=https%3A%2F%2Fcts.businesswire.com%2Fct%2FCT%3Fid%3Dsmartlink%26url%3Dhttp%253A%252F%252Fwww.sec.gov%26esheet%3D52731738%26newsitemid%3D20220526005296%26lan%3Den-US%26anchor%3Dwww.sec.gov%26index%3D3%26md5%3D71730248d1246129aacecb836b4f9383&amp;a=www.sec.gov" target="_blank" rel="nofollow">www.sec.gov</a>.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&#39;s other wholly owned subsidiary, Ault Capital Group, Inc. (&#34;ACG&#34;), is a hybrid private equity firm and operating company that acquires, finances, builds and actively manages businesses across financial services, digital assets, industrial services, hospitality, defense technologies and other sectors.Hyperscale Data currently expects the divestiture of ACG (the &#34;Divestiture&#34;) to occur in 2027. Upon the occurrence of the Divestiture, the Company would be an owner and operator of data centers to support high-performance computing services, as well as a holder of the 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, equipment rental services, defense/aerospace, industrial, automotive and hotel operations. In addition, ACG is actively engaged in private credit and structured finance through Ault Lending, LLC, a licensed lending subsidiary. Hyperscale Data&#39;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 &#34;Series F Preferred Stock&#34;) 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 &#34;ACG Shares&#34;). 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 StatementsThis press release contains &#34;forward-looking statements&#34; 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 &#34;believes,&#34; &#34;plans,&#34; &#34;anticipates,&#34; &#34;projects,&#34; &#34;estimates,&#34; &#34;expects,&#34; &#34;intends,&#34; &#34;strategy,&#34; &#34;future,&#34; &#34;opportunity,&#34; &#34;may,&#34; &#34;will,&#34; &#34;should,&#34; &#34;could,&#34; &#34;potential,&#34; 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&#39;s business and financial results are included in the Company&#39;s filings with the U.S. Securities and Exchange Commission, including, but not limited to, the Company&#39;s Forms 10-K, 10-Q and 8-K. All filings are available at <a xmlns="http://www.w3.org/1999/xhtml" href="https://edge.prnewswire.com/c/link/?t=0&amp;l=en&amp;o=4749829-1&amp;h=607743137&amp;u=http%3A%2F%2Fwww.sec.gov%2F&amp;a=www.sec.gov%C2%A0" target="_blank" rel="nofollow">www.sec.gov </a>and on the Company&#39;s website at <a xmlns="http://www.w3.org/1999/xhtml" href="https://edge.prnewswire.com/c/link/?t=0&amp;l=en&amp;o=4749829-1&amp;h=3109397566&amp;u=https%3A%2F%2Fhyperscaledata.com%2F&amp;a=hyperscaledata.com" target="_blank" rel="nofollow">hyperscaledata.com</a>. 



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Hyperscale Data Board Considers All Options to Maximize Stockholder Value, Including Potential Sale of Its Michigan Data Center

Hyperscale Data Board weighs options to unlock Michigan data center value

Hyperscale Data's board has initiated a strategic review of options to maximize stockholder value, including a potential sale, lease, or partnerships for its Michigan data center. The Michigan project shows a 20 MW deployment valued at about $1.2 billion, with expansion upside to over $3 billion and 80% of capacity still available. While no transaction is guaranteed, the review could unlock significant value and influence GPUS.

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Hyperscale Data Board Considers All Options to Maximize Stockholder Value, Including Potential Sale of Its Michigan Data Center

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