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LAS VEGAS - Hyperscale Data, Inc. (NYSE American: GPUS), currently trading at $5.58 and showing a concerning InvestingPro Financial Health Score of 1.69 (labeled as WEAK), announced today that its subsidiary, Sentinum, Inc., is set to resume Bitcoin mining operations at its Montana facility around June 10, 2025. The site, completed in 2024, is equipped with the capacity to power approximately 3,200 S19j Pro Antminers, but will start with about 2,600 of these mining units. The company plans to ramp up to full capacity in July.
William Horne, CEO of Hyperscale Data, cited the recent surge in Bitcoin prices as the reason for restarting the mining operations. With the company’s significant debt burden of $120.3 million and a concerning current ratio of 0.27, he expressed confidence that the price level is sustainable enough to generate a positive cash flow from the Montana operations. According to InvestingPro analysis, the company has been quickly burning through cash, with negative free cash flow of $24.24 million in the last twelve months.
The news comes as Hyperscale Data prepares for a strategic shift. The company, which also operates in AI ecosystems and other industries through its data centers, expects to divest its subsidiary Ault Capital Group, Inc. by the end of December 2025. This move will see Hyperscale Data focusing solely on data center operations for high-performance computing services, although it may continue Bitcoin mining activities.
In December 2024, Hyperscale Data issued one million shares of Series F Exchangeable Preferred Stock to its common and Series C Convertible Preferred Stockholders. The upcoming divestiture will involve the exchange of these preferred shares for Class A and Class B Common Stock of Ault Capital Group.
Hyperscale Data’s announcement is based on a press release statement and the company directs interested parties to its public filings and press releases for further information. The company’s plans are forward-looking statements that are subject to various factors and uncertainties, and actual results could differ from those projected.
The information shared is a factual representation of the company’s intentions without speculation on the future performance of Bitcoin or the broader impact on the industry. While the stock has shown strong returns over the past three months, InvestingPro analysis suggests the company is currently undervalued, with 13 additional key insights available to subscribers. Hyperscale Data is headquartered in Las Vegas, Nevada, and its filings can be accessed through the U.S. Securities and Exchange Commission’s website or the company’s investor relations section.
In other recent news, Hyperscale Data, Inc. has made significant financial maneuvers to enhance its operations and financial standing. The company amended its Series B Convertible Preferred Stock terms, setting a new conversion price structure, which was filed with the SEC. Hyperscale Data also issued a $110,000 convertible note to Jorico, LLC, and a $1.65 million convertible note to Orchid Finance LLC, both of which are set to mature in 2025 and are part of the company’s strategy to manage its capital structure. Additionally, the company secured up to $50 million in equity financing to expand its Michigan data center, a move that aligns with its focus on scalable and energy-efficient infrastructure.
Furthermore, Hyperscale Data announced a $17.5 million financial gain from the deconsolidation of its subsidiary, Avalanche International, Inc., which is expected to improve its balance sheet significantly. The company plans to divest completely from Ault Capital Group, Inc. by the end of 2025 to concentrate on its data center operations. These developments reflect Hyperscale Data’s ongoing efforts to stabilize its financial position and support its strategic growth initiatives.
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