Hyperscale Data expects to divest its subsidiary, Ault Capital Group, Inc. (ACG), in the second quarter of 2027. The company intends to execute this divestiture through a voluntary exchange of its Series F Exchangeable Preferred Stock for ACG's Class A and Class B common stock. This strategic move will allow Hyperscale Data to focus on its core operations managed by its wholly owned subsidiary, Sentinum, Inc.

Operations and Asset Holdings

Hyperscale Data operates through Sentinum, Inc., which manages a data center for digital asset mining and colocation services. The company reported holding 713.5884 Bitcoin, $40.2 million in cash, and 10,000 ounces of silver. These assets form part of the company's balance sheet as it transitions its business model.

Infrastructure and Revenue Strategy

The company is in advanced negotiations via Alliance Cloud Services for a master services agreement. This agreement aims to deliver 20 megawatts of AI compute capacity at its Michigan data center. The project is projected to generate more than $1 billion in revenue over 20 years. To support this AI infrastructure expansion, Hyperscale Data plans to phase out Bitcoin mining at the Michigan site.

Hyperscale Data, Inc. has launched an at-the-market equity offering program to raise aggregate gross proceeds of up to $300 million. The company, an artificial intelligence data center operator anchored by Bitcoin, will sell shares of its common stock from time to time through Spartan Capital Securities, LLC, acting as the sales agent. The proceeds are earmarked for expanding data center infrastructure and increasing holdings in digital assets and precious metals.

Sales under the offering will be conducted via transactions deemed to be at-the-market offerings. This includes sales made through ordinary brokers' transactions on the NYSE American or at prevailing market prices at the time of sale, as agreed upon with the agent. The structure allows the company to access capital flexibly based on market conditions.

Use of Proceeds

Hyperscale Data plans to allocate the majority of the net proceeds from the offering to three primary areas:

• Data Center Development: Further development of its Michigan and Montana data facilities.
• Bitcoin Acquisition: Purchasing additional Bitcoin.
• Precious Metals: Buying gold, silver, and/or copper.

A smaller portion of the proceeds will be directed toward working capital and general corporate purposes. This category may include the repayment, refinancing, redemption, or repurchase of future indebtedness or capital stock.

Management Discretion

As of the announcement date, the company stated it cannot predict with certainty all specific uses for the net proceeds. Consequently, Hyperscale Data's management retains broad discretion regarding the timing and application of the funds raised through this program.