Hyperscale Data reduces debt by $30 million, strengthens AI operations

LAS VEGAS - Hyperscale Data, Inc. (NYSE American:GPUS) has reduced its non-affiliated consolidated debt by approximately $30 million year-to-date, the company announced Thursday. This debt reduction represents a significant step for the company, which carries a total debt burden of $114 million and a concerning current ratio of 0.31, according to InvestingPro data.

The debt reduction was achieved through a combination of repayments and debt conversions, according to the company’s press release statement. This financial restructuring aims to support Hyperscale Data’s expansion of its Michigan artificial-intelligence and Bitcoin data center campus through its indirect wholly owned subsidiary, Alliance Cloud Services. With a market capitalization of just $41.68 million and an EBITDA of -$11.52 million in the last twelve months, InvestingPro analysis reveals significant financial challenges ahead.

"Reducing our debt by $30 million underscores our commitment to disciplined execution and financial strength," said Milton "Todd" Ault III, Founder and Executive Chairman of Hyperscale Data.

The company is working to increase power capacity at its 617,000-square-foot Michigan campus from approximately 30 megawatts to 70 megawatts, with completion anticipated by the second quarter of 2027. The facility is being designed to support both AI workloads and Bitcoin-mining operations.

Earlier this week, Hyperscale Data announced an order for 1,000 new Bitmain Antminer S21+ units for the Michigan facility. The company plans to install up to 5,000 S21+ miners across approximately 20 megawatts of capacity. With revenue declining by 22% in the last twelve months and a beta of 4.48, investors should note the stock’s high volatility. InvestingPro subscribers have access to 14 additional key insights about GPUS’s financial health and market performance.

The company continues to hold all Bitcoin earned from its mining operations on its balance sheet as part of what it describes as a digital asset treasury strategy. Hyperscale Data also plans to supplement these holdings through regular open-market acquisitions.

Hyperscale Data currently expects the divestiture of its subsidiary Ault Capital Group to occur in the second quarter of 2026, after which the company would focus on operating data centers and holding digital assets.

In other recent news, Hyperscale Data, Inc. announced a significant expansion of its Bitcoin mining operations by ordering 1,000 Bitmain Antminer S21+ miners for its Michigan data center. This move is part of a larger 20-megawatt upgrade plan, which will eventually include around 5,000 miners. The company’s Bitcoin holdings have also seen substantial growth, with its treasury reaching approximately $41 million, accounting for 44% of its market capitalization. As of October 5, Hyperscale Data’s subsidiary, Sentinum, held about 90.6144 Bitcoin valued at $11.2 million, marking a 312% increase from the previous week. Additionally, Hyperscale Data continues to maintain its 39-month streak of paying dividends for its 13.00% Series D Cumulative Redeemable Perpetual Preferred Stock. These developments highlight the company’s strategic focus on expanding its Bitcoin assets and maintaining shareholder returns.

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