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LAS VEGAS - Hyperscale Data, Inc. (NYSE American:GPUS) announced Monday it has reduced its outstanding debt by more than $20 million as part of its transformation into a focused artificial intelligence data center platform. The debt reduction represents a significant step for the company, which carries total debt of $120.32 million according to InvestingPro data. The stock currently trades near its 52-week low of $1.14.
The debt reduction strengthens the company’s financial position as it prepares to develop its 617,000-square-foot data center in Michigan into an AI infrastructure hub. With a current market capitalization of just $25.15 million and a concerning current ratio of 0.28, InvestingPro analysis indicates the company may face challenges in funding its ambitious expansion plans.
"By strengthening our balance sheet, we’re better positioned to accelerate the buildout of our Michigan AI facility," said Milton Todd Ault III, Founder and Executive Chairman of Hyperscale Data.
The company stated it plans to begin procurement of critical components for the AI data center and work on increasing existing capacity to deploy an additional 40 megawatts of power.
Hyperscale Data’s Michigan facility has potential for significant expansion. In February 2025, the company’s subsidiary, Alliance Cloud Services, reached an agreement in principle with its primary local utility to expand available power from approximately 30 MW to 300 MW over approximately 44 months once formal authorization is executed.
Additionally, the company has reached an agreement in principle with the local natural gas utility to supply an extra 40 MW of power, expected to be completed within 18 months of executing definitive agreements.
The company intends to complete its previously announced separation from Ault Capital Group by year-end 2025, after which Hyperscale Data will operate as a standalone AI infrastructure business.
The company noted in its press release that completion of the power upgrades remains subject to various risks, including securing sufficient funding, obtaining regulatory approvals, and acquiring necessary land rights. These challenges are particularly significant given the company’s negative EBITDA of -$19.03 million and revenue decline of -34.29% in the last twelve months. InvestingPro subscribers have access to 15 additional key insights about GPUS’s financial health and growth prospects.
In other recent news, Hyperscale Data, Inc. reported significant developments across various business areas. The company has achieved a milestone of 36 consecutive monthly cash dividend payments for its Series D Preferred Stock, translating to $0.2708333 per share monthly. Additionally, Hyperscale Data disclosed several unregistered stock issuances, including the conversion of Series B Convertible Preferred Stock into 1,117,133 shares of Class A Common Stock. Hyperscale Data’s subsidiary, Sentinum, mined approximately 13.7 bitcoin in June 2025, contributing to $11.2 million in year-to-date Bitcoin mining revenue. The company plans to launch a tokenization platform called StableShare in the first quarter of 2026 through its subsidiary, Ault Markets. This platform will focus on tokenizing various assets, including public equities and real-world assets. Furthermore, Ault Markets intends to launch a validator node on the Solana blockchain in the third quarter of 2025, expanding Hyperscale Data’s blockchain infrastructure services. The company also announced plans to divest its subsidiary, Ault Capital Group, by December 31, 2025, to focus on high-performance computing services.
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