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LAS VEGAS - Hyperscale Data, Inc. (NYSE American:GPUS) has reduced its outstanding consolidated non-affiliated debt by approximately $25 million year-to-date, the company announced Today. According to InvestingPro data, the company still carries a substantial total debt of $120.32 million, with a current market capitalization of approximately $21 million.
The debt reduction was achieved through a combination of repayments and strategic conversions, according to the company’s press release statement. With a concerning current ratio of 0.28, InvestingPro analysis indicates potential challenges in meeting short-term obligations. This financial restructuring comes as Hyperscale Data prepares to expand power capacity at its 617,000-square-foot data center campus in Michigan.
The company aims to increase the power capacity to 70 megawatts over the next 20 months through new natural gas distribution infrastructure for on-site power generation. Hyperscale Data expects the facility’s power capacity could ultimately reach approximately 340 megawatts, subject to agreements with the local utility provider and securing appropriate funding.
Milton "Todd" Ault III, Founder and Executive Chairman of Hyperscale Data, said the debt reduction represents "a strategic step toward unlocking our full potential to become a leading AI infrastructure company."
The Michigan facility is being developed by Alliance Cloud Services, LLC, an indirect wholly owned subsidiary of Hyperscale Data, and is intended to serve enterprise-grade and hyperscale AI workloads.
Hyperscale Data operates through its wholly owned subsidiary Sentinum, Inc., which mines digital assets and offers colocation and hosting services. The company also owns Ault Capital Group, Inc. (ACG), which it currently expects to divest in the first quarter of 2026.
The improved capital structure is expected to enhance the company’s ability to access growth capital on more favorable terms as it continues development of its AI data center infrastructure. With annual revenue of $93.32 million and an overall Financial Health Score rated as WEAK by InvestingPro, investors can access 14 additional ProTips and comprehensive financial metrics through an InvestingPro subscription.
In other recent news, Hyperscale Data, Inc. reported the issuance of over 3 million shares of its Class A common stock through conversions of preferred stock and a convertible note. The company converted 5 shares of Class B common stock into Class A shares and issued approximately 2,890,755 Class A shares following the conversion of Series B Convertible Preferred Stock. Additionally, Hyperscale Data’s subsidiary, askROI, has surpassed 700,000 cumulative downloads on the Apple App Store and Google Play, with plans to release a fully native mobile version featuring new financial tools and AI agents. The company also clarified that its planned acquisition of up to $10 million in XRP cryptocurrency will remain on its balance sheet, separate from its subsidiary Ault Capital Group. Furthermore, Hyperscale Data announced an engineering design agreement with SEMCO Energy Gas Company to develop natural gas infrastructure for its Michigan data center, aiming to enable 40 megawatts of additional power generation. The company will also begin publishing weekly updates on its XRP acquisition activity starting August 12, 2025, to provide transparency on its digital asset transactions. These developments reflect Hyperscale Data’s ongoing strategic initiatives and operational activities.
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