One & One Green Technologies stock soars 100% after IPO debut
LAS VEGAS - Hyperscale Data, Inc. (NYSE American:GPUS), currently trading near its 52-week low of $0.69, announced Wednesday that its planned acquisition of up to $10 million in $XRP will remain solely on the company’s balance sheet and not be owned by its subsidiary Ault Capital Group (ACG). According to InvestingPro data, the company operates with a significant debt burden, with total debt reaching $120 million as of Q1 2025.
The company, which plans to divest ACG around December 31, 2025, clarified the ownership structure of its cryptocurrency holdings as part of its strategy to become a "pureplay data center business," according to a press release statement. The strategic shift comes as the company faces challenging financial metrics, with InvestingPro analysis showing a negative EBITDA of $19 million and a concerning current ratio of 0.28.
"We wanted to clarify for our stockholders that this $XRP acquired will be a Hyperscale Data asset, even after the planned Divestiture of ACG," said Milton "Todd" Ault III, Executive Chairman of Hyperscale Data.
The company indicated it will begin weekly reporting of its $XRP acquisitions starting August 12, 2025. Separately, ACG intends to initiate its own $XRP accumulation strategy, with updates on this and a previously announced $XRP lending platform expected in coming months.
Hyperscale Data operates in the data center space through its subsidiary Sentinum, Inc., which mines digital assets and offers colocation and hosting services for artificial intelligence ecosystems. The company’s planned divestiture of ACG would leave it focused solely on data center operations, though it may continue some digital asset activities.
The divestiture is expected to occur through an exchange of Series F Preferred Stock for shares of ACG, as outlined in the company’s December 2024 issuance of one million shares of Series F Exchangeable Preferred Stock to existing stockholders.
In other recent news, Hyperscale Data, Inc. reported a 45% increase in its second-quarter revenue, reaching $25.8 million compared to $17.8 million from the previous year. The company also reaffirmed its full-year revenue guidance, projecting between $125 million and $135 million for 2025. Additionally, Hyperscale Data announced plans to expand its Michigan data center campus to 340 megawatts by the third quarter of 2029, focusing on artificial intelligence and high-performance computing infrastructure. This expansion will increase the current capacity from 30 megawatts to 70 megawatts over the next 20 months. Furthermore, Hyperscale Data’s subsidiary, Alliance Cloud Services, has entered into an agreement with SEMCO Energy Gas Company to design natural gas infrastructure for the Michigan data center, enabling 40 megawatts of additional power generation. The company also plans to start publishing weekly updates on its XRP cryptocurrency acquisition activity, with a strategy to acquire up to $10 million worth of XRP digital assets. Meanwhile, BitNile.com, a subsidiary of Hyperscale Data, is seeking listings on centralized digital asset exchanges for its $NILE coin, which currently has a market capitalization of approximately $103 million. These developments mark significant strategic moves for Hyperscale Data and its subsidiaries.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.