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Ault & Company Makes Strategic Investment into Hyperscale Data

On September 25, 2026, Ault & Company, Inc., a private holding firm managed by CEO Milton "Todd" Ault III, declared a significant investment of $55 million into Hyperscale Data, Inc. This funding is aimed at enhancing the capacity and growth potential of Hyperscale, which is currently traded on NYSE American. This sum represents the direct acquisition of convertible preferred shares, alongside previous common stock investments made by Ault & Company and its associates in the marketplace.

Ault & Company has remarkably acquired around 62% ownership of Hyperscale Data, underlining a strong commitment to driving the company’s growth trajectory. The significant investment is rooted in the belief that Hyperscale Data's current market valuation does not accurately reflect the intrinsic worth of its assets and business operations.

Hyperscale Data's Promising Assets

In the heart of Hyperscale’s value proposition is its AI data center located in Michigan, operated by its wholly-owned subsidiary, Alliance Cloud Services, LLC (ACS). Investments exceeding $70 million have been funneled into this facility, which has struck a master services agreement (MSA) to provide an initial capacity of 20 megawatts (MW) slated for artificial intelligence computations. The terms allow for an expansion to potentially 52 MW.

This initial deployment is projected to drive revenues exceeding $1.2 billion if the MSA is maintained for its full 20-year duration. If the expansion is executed, total contract revenue might surge past $3 billion, highlighting a significant growth opportunity in Hyperscale's future. ACS estimates that the 52 MW deployment represents less than 20% of their proposed total capacity of 340 MW, providing a strong foundation for strategic growth, although further capacity development is contingent upon multiple factors including financing and regulatory approval.

Valuation Insights

The management team of Hyperscale Data asserts that their Michigan campus can sustain valuations ranging between $750 million and $1.25 billion. The lower end of this range indicates a price point that would prompt serious consideration if a sale were being contemplated. These assessments, however, reflect management's opinion and not an independent valuation or guarantee of a sale at these levels. As of June 30, 2026, the company reported total assets worth approximately $360 million, comprised of its Michigan investment and a diverse array of operating businesses.

Hyperscale Data has also recorded a consolidated revenue of $34.8 million for the second quarter of 2026, further highlighting operational capacity within sectors such as defense, aerospace, commercial lending, and blockchain technology among others.

Financial Strength and Future Strategy

In addition, as of mid-September 2026, Hyperscale Data's financial health has been bolstered by approximately $51 million in Bitcoin holdings, cash, and restricted cash. Milton Ault expressed, “Our substantial investment in Hyperscale Data is a strategic move based on the value of its holdings and the opportunities that lie ahead.”

Ault & Company remains committed to supporting Hyperscale Data's growth initiatives, closely evaluating more investment options, including the potential to purchase an additional $96 million in series H convertible preferred stock, all subject to market conditions and securities regulations.

In conclusion, Ault & Company's deep investment in Hyperscale Data underlines a belief in the long-term potential of technological advancements within the company’s operations. As broader market dynamics continue to evolve, this significant financial backing could play a crucial role in unlocking the potential embedded in Hyperscale Data's diverse asset portfolio and innovative direction.