EU and US could reach trade deal this weekend - Reuters
LAS VEGAS - Hyperscale Data, Inc. (NYSE American:GPUS) announced Monday a strategic roadmap to expand its Michigan data center campus to 340 megawatts (MW) by the third quarter of 2029, focusing on artificial intelligence and high-performance computing infrastructure. The company, currently valued at $22.55 million, faces significant challenges with InvestingPro data showing a 34% year-over-year revenue decline and a weak financial health score.
The company currently operates approximately 30 MW at the Michigan facility and plans to increase capacity to 70 MW over the next 20 months. The full buildout is expected within 44 months after finalizing utility agreements and securing funding.
"We are building a scalable, AI-centric digital infrastructure platform," said William B. Horne, Chief Executive Officer of Hyperscale Data.
The company has filed a $125 million shelf registration statement to provide financial flexibility, though it stated no immediate plans to raise capital. With a substantial debt burden of $120.32 million and a concerning current ratio of 0.28, InvestingPro analysis indicates the company may face challenges meeting its short-term obligations. The Michigan facility, situated on a 34-acre site, currently generates revenue through digital asset mining and colocation services.
Hyperscale Data’s expansion timeline includes maintaining current operations at 30 MW, adding 40 MW by the second quarter of 2027, and completing the remaining 270 MW by the third quarter of 2029.
The company’s subsidiary, Alliance Cloud Services, has reached an agreement in principle with the local utility to increase available power to 300 MW, with negotiations for the final authorization ongoing. An additional agreement with the local natural gas utility would supply an extra 40 MW.
Hyperscale Data also noted its plan to divest its Ault Capital Group subsidiary around December 31, 2025, which would transform it into a focused data center operator supporting high-performance computing services. InvestingPro subscribers have access to 15 additional key insights about GPUS’s financial health, valuation metrics, and growth prospects that could impact this strategic transition.
The information in this article is based on a company press release statement.
In other recent news, Hyperscale Data, Inc. reported a 45% increase in second-quarter revenue, reaching $25.8 million, compared to $17.8 million in the same period last year. The company reaffirmed its full-year revenue guidance of $125 million to $135 million and has reduced its debt by over $20 million year-to-date. In an effort to expand its artificial intelligence data center operations, Hyperscale Data is preparing to develop a 617,000-square-foot facility in Michigan. Additionally, the company expects to reconsolidate Gresham Worldwide, Inc. as a subsidiary by October 1, 2025, projecting it will contribute approximately $10 million in revenue during the fourth quarter of 2025. Hyperscale Data has declared monthly cash dividends for two series of its preferred stock, with payment scheduled for August 11, 2025. The company also announced that its subsidiary, askROI, has surpassed 590,000 cumulative downloads of its mobile application. As part of its strategic transformation, Hyperscale Data plans to divest Ault Capital Group by the end of 2025. The company has reached a three-year milestone of consecutive monthly dividends for its Series D Cumulative Redeemable Perpetual Preferred Stock.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.