Hyperscale Data Reports 219.9586 Bitcoin and $37.4 Million in Cash

Balance sheet figures

According to the company, the Bitcoin holdings of 219.9586 coins represent an aggregate value of approximately $19 million, calculated at the Bitcoin closing price of $86,480. In addition, Hyperscale Data reported holding approximately $37.4 million in cash and restricted cash. The headline of the announcement puts the combined total of Bitcoin, cash and restricted cash at approximately $56.4 million.

The company did not provide a breakdown between unrestricted and restricted cash in the announcement, nor any other financial details such as debt or revenue.

Management comment and the Michigan project

Milton "Todd" Ault III, Executive Chairman of Hyperscale Data, said: "We are pleased with the current financial position of the Company." He added: "Our focus remains on strengthening the Company's balance sheet in order to support our core businesses and advance the development of our Michigan AI data center."

The release gives no further details on the Michigan facility. Hyperscale Data points stockholders and investors to its public filings and press releases, available on its Investor Relations website and at sec.gov, for more information.

Business structure and planned divestiture

Through its wholly owned subsidiary Sentinum, Inc., Hyperscale Data owns and operates a data center that offers colocation and hosting services for emerging AI ecosystems and other industries. Another wholly owned subsidiary, Ault Capital Group, Inc. (ACG), is described as a hybrid private equity firm and operating company active in financial services, digital assets, industrial services, hospitality, defense technologies and other sectors.

Hyperscale Data currently expects the divestiture of ACG to occur in 2027. After that, the company says it would be an owner and operator of data centers supporting high-performance computing services, as well as a holder of digital assets and of its third wholly owned subsidiary, Omnipresent Robotics, LLC. Until then, it will continue to provide products through ACG and its subsidiaries and investments, including an AI software platform, equipment rental services, defense and aerospace, industrial, automotive and hotel operations. ACG is also active in private credit and structured finance through Ault Lending, LLC, a licensed lending subsidiary.

The divestiture is to be carried out through a voluntary exchange. On December 23, 2024, the company issued 1,000,000 shares of Series F Exchangeable Preferred Stock to all common stockholders and holders of the Series C Preferred Stock on an as-converted basis. These shares can be exchanged for Class A and Class B Common Stock of ACG. The company reminds stockholders that only holders of Series F Preferred Stock who agree to surrender their shares, and do not properly withdraw that surrender in the exchange offer, will receive ACG shares and become ACG shareholders when the divestiture occurs.

What it means for investors

The announcement offers a snapshot of the company's liquidity and digital asset holdings as it prepares to separate ACG and concentrate on data center operations. The Bitcoin value depends on the $86,480 closing price used in the calculation, so the figure will change as the market moves. The release also contains forward-looking statements, and the company notes that actual results could differ materially. Further detail is to be found in its filings with the U.S. Securities and Exchange Commission.