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LAS VEGAS - Hyperscale Data, Inc. (NYSE American: GPUS), a technology company with a market capitalization of $16.62 million that has seen its stock decline nearly 79% over the past year, announced Tuesday that its Founder and Executive Chairman, Milton Todd Ault III, will resign from his executive chairman position but remain as a director following the company’s planned divestiture of Ault Capital Group, Inc. (ACG).
The divestiture is expected to be completed around December 31, 2025. After the separation, Mr. Ault, who also serves as ACG’s Executive Chairman, will focus primarily on leading ACG and its portfolio of businesses spanning private credit, artificial intelligence software, social gaming, equipment rental, and other sectors. According to InvestingPro data, the company operates with a significant debt burden, with a debt-to-equity ratio of 19.07x.
William Horne, Hyperscale Data’s current Chief Executive Officer, is expected to assume the position of Chairman of the Board while continuing in his CEO role. Mr. Horne will guide the company’s transformation into an owner and operator of data centers supporting high-performance computing services, though it may continue Bitcoin mining operations for a period.
"This is a natural next step in Hyperscale Data’s evolution," said Mr. Ault. "With Will at the helm, the Company is well-positioned to deliver on our vision of it becoming a leading pure-play AI data center platform."
The divestiture will occur through the voluntary exchange of Series F Exchangeable Preferred Stock for shares of ACG’s Class A and Class B Common Stock. Only holders of Series F Preferred Stock who surrender their shares in the exchange offer will become ACG stockholders after the divestiture.
Following the separation, Hyperscale Data will operate primarily through its wholly owned subsidiary Sentinum, Inc., which runs a data center that mines digital assets and offers colocation and hosting services for AI ecosystems and other industries.
The information in this article is based on a company press release statement.
In other recent news, Hyperscale Data, Inc. has announced several significant developments. The company reported issuing new equity shares, converting preferred and common stock into 205,000 shares of Class A Common Stock and converting a $281,521 note into 145,000 shares. In a separate announcement, Hyperscale Data’s subsidiary, Sentinum, projects an annual Bitcoin mining run rate of approximately $41 million, based on deploying 19,200 miners across various locations. Additionally, the company has expanded its power electronics subsidiary TurnOnGreen’s contract backlog to $7.5 million, reflecting ongoing demand for its power systems. Hyperscale Data also revealed a Hosting Services Agreement with Montana OP LLC for Bitcoin mining, providing access to 20 megawatts of energy capacity. Furthermore, the company plans to reintegrate Gresham Worldwide’s financials post-bankruptcy, potentially increasing its fourth-quarter revenue by up to $10 million. Hyperscale Data has updated its full-year 2025 revenue guidance to between $125 million and $135 million, factoring in Gresham Worldwide’s expected contributions. Lastly, the company plans to divest Ault Capital Group by the end of 2025, shifting its focus solely to data center operations.
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