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LAS VEGAS - Hyperscale Data, Inc. (NYSE American:GPUS), a small-cap technology company with a market capitalization of $15.4 million, announced plans to expand the power capacity at its Michigan data center facility from approximately 30 megawatts (MW) to 340 MW, according to a stockholder letter issued Thursday. According to InvestingPro data, the company faces significant operational challenges with a weak financial health score of 1.18 out of 5.
The company’s subsidiary, Alliance Cloud Services, has reached agreements in principle with local utilities to increase available power, with 300 MW expected to come from the primary local utility and an additional 40 MW from the local natural gas utility.
The power expansion project faces a lengthy timeline, with the primary utility upgrade expected to take approximately 44 months after formal authorization, while the natural gas component could be completed within 18 months of finalizing definitive agreements.
Hyperscale Data is pursuing hosting agreements for artificial intelligence (AI) and high-performance computing services at the 617,000-square-foot Michigan facility, citing industry deals like Applied Digital Corporation’s recent $7 billion contract with CoreWeave.
The company also confirmed its previously announced plan to separate from Ault Capital Group, Inc. (ACG) by year-end 2025. Following the separation, Hyperscale Data will operate as a standalone company focused on AI and digital asset compute solutions, while founder Milton Todd Ault III will depart to lead ACG.
William Horne, current CEO, is expected to assume the additional role of Chairman after Ault’s departure.
The company noted that successful execution of its strategy will require "considerable capital investment" and faces risks including potential failure to secure necessary funding, regulatory approvals, or land rights for the power upgrades.
The information was shared in a press release containing a letter to stockholders from the company’s founder and executive chairman.
In other recent news, Hyperscale Data, Inc. has announced several developments. The company reported the issuance of new equity shares, converting preferred and common stock into 205,000 shares of Class A Common Stock, alongside other conversions, increasing its total to 3,151,372 shares as of June 12, 2025. Additionally, Hyperscale Data’s subsidiary, Sentinum, projects an annual Bitcoin mining run rate of approximately $41 million, based on mining 375.24 Bitcoin per year starting July 2025, with 19,200 miners deployed across multiple locations. The company plans to divest its diversified holding company subsidiary, Ault Capital Group, Inc., by December 31, 2025, to focus on data center operations. Following this divestiture, Founder and Executive Chairman Milton Todd Ault III will step down from his role but remain a director, while CEO William Horne will assume the Chairman position. Hyperscale Data’s subsidiary, Bitnile.com, has added the $TRUMP meme coin as a payment option on its social-casino platform. Furthermore, the company’s power electronics subsidiary, TurnOnGreen, has expanded its contract backlog to $7.5 million, reflecting demand for high-performance power systems. These developments are part of Hyperscale Data’s strategic focus on data center operations and digital asset mining.
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