Hyperscale Data Strengthens Financial Position with $30 Million Debt Reduction

In a significant move to bolster its financial standing, Hyperscale Data, Inc. (NYSE American: GPUS) has announced a reduction of approximately $30 million in its outstanding consolidated non-affiliated debt. This noteworthy accomplishment, disclosed on October 9, 2025, represents a pivotal moment for the diversified holding company as it enhances its capital structure and positions itself to propel its artificial intelligence (AI) and Bitcoin initiatives.

With this debt reduction, achieved through strategic repayments and conversions, Hyperscale Data has effectively improved its leverage and liquidity. Such enhancements are instrumental for the company, allowing it the freedom to pursue growth avenues with more favorable capital conditions. Milton "Todd" Ault III, the Founder and Executive Chairman, emphasized the importance of this step, stating, “Reducing our debt by $30 million underscores our commitment to disciplined execution and financial strength.” This strengthened balance sheet will facilitate accelerated growth in various initiatives, including power expansions, equipment upgrades, and onboarding of both hyperscale and enterprise-level AI customers, along with enhancing Bitcoin mining efficiency and strategies concerning digital assets.

Strategic Alignment with Michigan Operations

The debt reduction aligns perfectly with ongoing efforts to expand Hyperscale Data's Michigan operation, managed through its wholly owned subsidiary, Alliance Cloud Services, LLC (ACS). The Michigan campus, measuring a significant 617,000 square feet, is being designed to accommodate enterprise-grade AI workloads and high-efficiency Bitcoin-mining activities. To achieve this goal, Hyperscale Data plans to increase its power capacity from approximately 30 megawatts (MW) to 70 MW, slated for completion by the second quarter of 2027. This expansion will incorporate new natural gas infrastructure, particularly focused on enabling on-site power generation.

The company views this expansion as integral to its future. Hyperscale Data anticipates that, pending cooperation from local utility providers and navigating any potential regulatory issues, the Michigan campus could potentially develop a power capacity of up to 340 MW.

In a move to upgrade their mining capabilities, Hyperscale Data has placed an order for 1,000 Bitmain Antminer S21+ units specifically for the Michigan facility. This is part of a multi-phase program aimed at replacing older units with more current-generation models that promise greater efficiency, allowing for more than double the hash rate per unit of energy consumed. Plans are in place to install up to 5,000 S21+ miners, which will significantly enhance productivity and Bitcoin output.

Mr. Ault further noted, “We are aligning operational performance with a stronger financial foundation.” The synthesis of disciplined balance-sheet management along with strategic investments in infrastructure and equipment is setting the stage for Hyperscale Data to organically grow its AI frameworks while advancing its digital asset mining operations.

Digital Asset Treasury Strategy

In line with its forward-thinking approach, Hyperscale Data is holding all Bitcoin mined through its operations as part of a comprehensive digital asset treasury strategy. The company is also pursuing regular market acquisitions to bolster its Bitcoin holdings, aiming toward a target of establishing a substantial $100 million Bitcoin treasury.

For stakeholders and interested parties, Hyperscale Data encourages keeping abreast of their developments through public filings available in the Investor Relations section at hyperscaledata.com or at www.sec.gov.

About Hyperscale Data, Inc.

Hyperscale Data, Inc., through its subsidiary Sentinum, Inc., operates a data center focused on mining digital currencies and providing colocation services catering to the escalating AI ecosystem. Additionally, its other subsidiary, Ault Capital Group, Inc. (ACG), is actively involved in acquiring undervalued businesses and transformative technologies with a global reach.

A critical business transformation is anticipated as Hyperscale Data prepares for the divestiture of ACG, slated for the second quarter of 2026. After the divestiture, Hyperscale Data will solely own and operate data centers aimed at high-performance computing services while also holding significant digital assets. The company plans to continue providing crucial mission-critical products through ACG until the divestiture occurs, thereby ensuring continuous support for diverse industries, including automotive, healthcare, biopharma, social gaming, and more steadily growing sectors.

With its headquarters situated in Las Vegas, NV, Hyperscale Data continues to innovate and adapt in a rapidly changing data-focused landscape while seeking to maximize value for its shareholders both now and in the long term.