Hyperscale Data sells minority interest in a pharmaceutical company for $4.65 million, focusing on data center expansion in Michigan.
Quiver AI Summary
Hyperscale Data, Inc. announced the sale of its minority equity interest in a pharmaceutical company for $4.65 million, having originally invested $1.5 million in it several years ago. This sale aligns with the company’s strategy to focus on its main asset, a 617,000 square foot data center in Michigan, which is being developed for high-performance computing, particularly for AI applications. The CEO, William B. Horne, highlighted the company’s commitment to enhancing value by concentrating on the data center, which is expected to undergo significant power upgrades to support growing AI demands. Alongside this, the company is in discussions to expand its power capacity significantly over the next few years. Hyperscale Data also plans to divest its other subsidiary, Ault Capital Group, by the end of 2025 to solidify its focus on data center operations.
Potential Positives
- The company successfully sold its minority equity interest in a pharmaceutical company for $4.65 million in cash, more than tripling its original investment of $1.5 million.
- This transaction aligns with the company’s strategy to exit non-core investments and focus on its primary asset, a large data center being developed for high-performance computing and AI applications.
- A significant power capacity expansion agreement in principle with the local utility positions the company to support accelerating demand for AI infrastructure, increasing available power from 30 MW to 300 MW.
- The anticipated completion of the power upgrade project will enhance the company's capabilities to host large-scale AI workloads and HPC services, solidifying its market position.
Potential Negatives
- The sale of the minority equity interest in the pharmaceutical company for $4.65 million, significantly lower than the $1.5 million purchase price, raises questions about the company's investment strategy and potential financial management issues.
- The announcement highlights the significant risks and uncertainties associated with the planned power upgrades at the Michigan facility, which are critical for its operational expansion and could be subject to delays or complications.
- The impending divestiture of Ault Capital Group, which could lead to a more narrow business focus, may concern investors about the company's growth prospects and diversification strategy moving forward.
FAQ
What is the recent equity sale by Hyperscale Data?
Hyperscale Data sold its minority equity interest in a pharmaceutical company for $4.65 million, purchased for $1.5 million.
How is the sale related to Hyperscale Data's strategy?
The sale aligns with Hyperscale Data's strategy to exit non-core investments and focus on its primary asset—a data center in Michigan.
What are the expected upgrades for the Michigan data center?
The Michigan data center is expected to expand its power capacity to approximately 340 MW to support AI and HPC workloads.
What is the anticipated timeline for the power upgrade completion?
The power upgrade is expected to be completed within 44 months for the primary power and 18 months for natural gas upgrades.
What will happen to Ault Capital Group in 2025?
Hyperscale Data expects to divest Ault Capital Group around December 31, 2025, focusing solely on data center operations.
Disclaimer: This is an AI-generated summary of a press release distributed by GlobeNewswire. The model used to summarize this release may make mistakes. See the full release here.
$GPUS Insider Trading Activity
$GPUS insiders have traded $GPUS stock on the open market 8 times in the past 6 months. Of those trades, 7 have been purchases and 1 have been sales.
Here’s a breakdown of recent trading of $GPUS stock by insiders over the last 6 months:
- MILTON C III AULT (Executive Chairman) has made 7 purchases buying 2,000 shares for an estimated $11,983 and 0 sales.
- WILLIAM B. HORNE (Chief Executive Officer) sold 2 shares for an estimated $10
To track insider transactions, check out Quiver Quantitative's insider trading dashboard.
Full Release
LAS VEGAS, June 02, 2025 (GLOBE NEWSWIRE) --
Hyperscale Data, Inc.
(NYSE American: GPUS), a diversified holding company (“
Hyperscale Data
” or the “
Company
”), today announced the sale of its minority equity interest in a privately held pharmaceutical company for gross proceeds of $4.65 million in cash. Hyperscale Data purchased the equity position for $1.5 million in several closings between three and four years ago.
This transaction is consistent with the Company’s ongoing strategy to exit non-core investments and concentrate capital and resources on its primary asset—a 617,000 square foot data center located in Michigan, which is being developed to support high-performance computing (“
HPC
”) workloads, including artificial intelligence (“
AI
”) applications.
“As we streamline our operations and sharpen our focus, this sale demonstrates our commitment to unlocking value and deploying capital where we believe we have the greatest long-term opportunity,” said William B. Horne, Chief Executive Officer of Hyperscale Data. “We are firmly focused on developing our Michigan data center to meet the accelerating demand for AI infrastructure.”
In February 2025, the Company announced that its indirect, wholly owned subsidiary Alliance Cloud Services, LLC (“
ACS
”) had reached an agreement in principle with its primary local utility to expand the Michigan facility’s available power from approximately 30 megawatts (“
MW
”) to 300 MW. The completion of this power upgrade is anticipated to take 44 months from execution of a formal letter of authorization between ACS and the utility, which is currently being negotiated. In addition, the Company also announced that ACS has reached an agreement in principle with the local natural gas utility to provide an additional 40 MW. The project is expected to be completed within 18 months of the execution of definitive agreements. Combined, this expansion would bring the total expected power capacity of the data center to approximately 340 MW, positioning Hyperscale Data to host large-scale AI and HPC workloads.
The completion of the power upgrades is subject to a number of risks and uncertainties, one or more which could result in the project being curtailed, delayed or terminated, including, but not limited to: failure to agree upon terms and execute definitive agreements; the inability of the Company or ACS to raise sufficient funds to pay for the power upgrades; failure to obtain regulatory consents and approvals; the inability to obtain sufficient easements, rights-of-way and land rights necessary to the work to be performed, and other presently unforeseen events or conditions.
For more information on Hyperscale Data and its subsidiaries, Hyperscale Data recommends that stockholders, investors and any other interested parties read Hyperscale Data’s public filings and press releases available under the Investor Relations section at
hyperscaledata.com
or available at
www.sec.gov.
About Hyperscale Data, Inc.
Through its wholly owned subsidiary Sentinum, Inc., Hyperscale Data owns and operates a data center at which it mines digital assets and offers colocation and hosting services for the emerging AI ecosystems and other industries. Hyperscale Data’s other wholly owned subsidiary, Ault Capital Group, Inc. (“
ACG
”), is a diversified holding company pursuing growth by acquiring undervalued businesses and disruptive technologies with a global impact.
Hyperscale Data expects to divest itself of ACG on or about December 31, 2025 (the “
Divestiture
”). Upon the occurrence of the Divestiture, the Company would solely be an owner and operator of data centers to support HPC services, though it may at that time continue to mine Bitcoin. Until the Divestiture occurs, the Company will continue to provide, through ACG and its wholly and majority-owned subsidiaries and strategic investments, mission-critical products that support a diverse range of industries, including an AI software platform, social gaming platform, equipment rental services, defense/aerospace, industrial, automotive, medical/biopharma and hotel operations. In addition, ACG is actively engaged in private credit and structured finance through a licensed lending subsidiary. Hyperscale Data’s headquarters are located at 11411 Southern Highlands Parkway, Suite 190, Las Vegas, NV 89141.
On December 23, 2024, the Company issued one million (1,000,000) shares of a newly designated Series F Exchangeable Preferred Stock (the “
Series F Preferred Stock
”) to all common stockholders and holders of the Series C Convertible Preferred Stock on an as-converted basis. The Divestiture will occur through the voluntary exchange of the Series F Preferred Stock for shares of Class A Common Stock and Class B Common Stock of ACG (collectively, the “
ACG Shares
”). The Company reminds its stockholders that only those holders of the Series F Preferred Stock who agree to surrender such shares, and do not properly withdraw such surrender, in the exchange offer through which the Divestiture will occur, will be entitled to receive the ACG Shares and consequently be stockholders of ACG upon the occurrence of the Divestiture.
Forward-Looking Statements
This press release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements generally include statements that are predictive in nature and depend upon or refer to future events or conditions, and include words such as “believes,” “plans,” “anticipates,” “projects,” “estimates,” “expects,” “intends,” “strategy,” “future,” “opportunity,” “may,” “will,” “should,” “could,” “potential,” or similar expressions. Statements that are not historical facts are forward-looking statements. Forward-looking statements are based on current beliefs and assumptions that are subject to risks and uncertainties.
Forward-looking statements speak only as of the date they are made, and the Company undertakes no obligation to update any of them publicly in light of new information or future events. Actual results could differ materially from those contained in any forward-looking statement as a result of various factors. More information, including potential risk factors, that could affect the Company’s business and financial results are included in the Company’s filings with the U.S. Securities and Exchange Commission, including, but not limited to, the Company’s Forms 10-K, 10-Q and 8-K. All filings are available at
www.sec.gov
and on the Company’s website at
hyperscaledata.com
.
Hyperscale Data Investor Contact:
IR@hyperscaledata.com
or 1-888-753-2235
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