Hyperscale Data, Inc.

What they do

Through subsidiary Sentinum, Inc., the company owns and operates data centers that mine Bitcoin and offer colocation and hosting services for AI and other industries, using NVIDIA GPU clusters. It also holds a diversified portfolio via Ault Capital Group, including defense electronics (Gresham), crane rental (Circle 8), hotel operations (AGREE), commercial electronics (TurnOnGreen), and lending/trading (Ault Lending). The company expects to divest Ault Capital Group in Q2 2027, leaving a focused AI data center and Bitcoin infrastructure business.

Revenue drivers

• Sentinum (crypto mining and data center services) — Core AI data center and Bitcoin mining operations; primary driver of future growth with the Michigan AI campus.
• Financial services (Ault Lending) — Commercial lending and trading; management cited stronger contributions from this business as a key driver of H1 2026 revenue growth.
• Gresham (defense solutions) — Defense electronics (Enertec, Relec, Microphase, Giga-tronics); reconsolidation of Gresham contributed significantly to H1 2026 revenue growth.
• Energy and Infrastructure (Circle 8) — Crane rental and lifting solutions for oilfield, construction, and infrastructure markets; a smaller segment in the diversified portfolio.

Recent performance

For H1 2026, preliminary consolidated revenue was approximately $80 million, up ~57% from ~$51 million in H1 2025, driven primarily by reconsolidation of Gresham and stronger Ault Lending contributions. Annual revenue declined from $134.8M in 2023 to $102.1M in 2025, with net losses of $66.4M in 2025. Latest quarterly revenue (Q1 2026) was $44.1M, up from $25.9M in Q2 2025. Operating cash flow was negative $62.5M in 2025. As of March 31, 2026, the company had $10.5M cash, $91.2M long-term debt, and $97.0M shareholder equity.

Strategy

The company is transitioning data centers from Bitcoin mining to HPC/AI purposes, integrating AI compute with Bitcoin mining under a parallel compute model. It expects to divest Ault Capital Group in Q2 2027, sharpening focus on AI data center and Bitcoin infrastructure. Management prioritizes maximizing per-share intrinsic value and pursuing monetization opportunities, including public offerings or sales of subsidiaries. They are also expanding blockchain initiatives and the financial services platform, with growth expected across the Michigan AI data center campus.

Risks

• Liquidity and financing risk — The company had only $10.5M cash against $216.7M liabilities as of Q1 2026, and relies on ATM offerings (raised $24.7M from common stock and $0.5M from preferred as of May 15, 2026) and a short-term $10.0M note (12% interest, maturing June 29, 2026) to fund operations.
• Divestiture execution risk — The planned divestiture of Ault Capital Group is not assured and may not occur in Q2 2027, leaving the company with an uncertain diversified structure.
• Bitcoin and AI market volatility — Revenue is tied to Bitcoin prices and mining economics, as well as demand for AI compute; both are subject to significant market fluctuations.
• Integration and reconsolidation risk — The reconsolidation of Gresham Worldwide introduces operational and accounting complexity, and past financial results show substantial net losses and negative operating cash flow.

Outlook

Management reaffirms 2026 revenue guidance of $180 million to $200 million and provides preliminary 2027 revenue outlook exceeding $300 million, driven by growth across the Michigan AI data center campus, financial services platform, and blockchain initiatives. The outlook assumes continued execution of strategic plans, subject to customer deployments, financing activities, and market conditions. Management expects to provide preliminary 2027 Adjusted EBITDA guidance and additional metrics during an August 4, 2026 conference call.