LAS VEGAS, Oct. 9, 2025 /PRNewswire/ -- Hyperscale Data, Inc. (NYSE:GPUS), a diversified holding company ("Hyperscale Data" or the "Company"), today announced that it has reduced its outstanding consolidated non-affiliated debt by approximately $30 million year-to-date. This achievement represents a substantial improvement to the Company's capital structure and financial flexibility to expand its flagship Michigan artificial-intelligence ("AI") and Bitcoin data center campus through its indirect wholly owned subsidiary, Alliance Cloud Services, LLC ("ACS").
The $30 million reduction—achieved through a combination of repayments and debt conversions—has meaningfully lowered leverage, strengthened liquidity and enhanced the Company's ability to pursue growth capital on favorable terms. This accomplishment supports Hyperscale Data's broader objective of building a financially resilient platform capable of funding large-scale infrastructure while delivering long-term value to stockholders.
"Reducing our debt by $30 million underscores our commitment to disciplined execution and financial strength," said Milton "Todd" Ault III, Founder and Executive Chairman of Hyperscale Data. "This stronger balance sheet enables us to accelerate our growth initiatives—from power expansion and equipment upgrades to onboarding hyperscale and enterprise AI customers, while also advancing our Bitcoin mining efficiency and digital asset strategy."
Strategic Alignment with Michigan Expansion
The debt reduction comes as ACS continues advancing power-capacity expansion at its 617,000-square-foot Michigan campus. The facility is being designed to support both enterprise-grade AI workloads and high-efficiency Bitcoin-mining operations in an integrated, energy-optimized environment. The Company expects to increase power capacity from approximately 30 megawatts ("MW") to approximately 70 MW, which is currently anticipated to be completed by the second quarter of 2027, through new natural-gas infrastructure enabling on-site generation. Ultimately, subject to reaching an agreement with the local utility provider, navigating unknown regulatory challenges and securing appropriate funding, Hyperscale Data anticipates the Michigan campus could expand to approximately 340 MW of capacity.
Earlier this week, Hyperscale Data announced an order for 1,000 new Bitmain Antminer S21+ units for the Michigan facility as part of a multi-phase upgrade program to replace older Bitcoin miners with current-generation models that deliver more than double the hash rate per unit of power consumed. The Company plans to install up to 5,000 S21+ miners across approximately 20 MW of capacity, significantly enhancing its operational efficiency and Bitcoin output.
"We are aligning operational performance with a stronger financial foundation," Mr. Ault added. "By pairing disciplined balance-sheet management with strategic infrastructure and equipment investments, we are positioning Hyperscale Data to provide both AI infrastructure and digital asset mining."
Digital Asset Treasury Strategy
Consistent with its long-term vision, the Company continues to hold all Bitcoin earned from its mining operations on its balance sheet as part of its digital asset treasury strategy. Hyperscale Data also plans to supplement these holdings through regular open-market acquisitions as it advances toward its goal of establishing a $100 million Bitcoin treasury.
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 AI ecosystems and other industries. Hyperscale Data's other wholly owned subsidiary, Ault Capital Group, Inc. ("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 second quarter of 2026. 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, 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 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 shareholders 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.
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SOURCE Hyperscale Data Inc.
