Hyperscale Data Reduces Debt by Over $20 Million, Strengthens Balance Sheet Ahead of Planned Michigan AI Data Center Expansion

LAS VEGAS, July 14, 2025 (GLOBE NEWSWIRE) --  (NYSE American: GPUS), a diversified holding company (“Hyperscale Data” or the “Company”), today announced it has reduced its outstanding debt by more than $20 million, representing a significant milestone in its transformation into a pure-play artificial intelligence (“AI”) data center platform.

This material debt reduction strengthens the Company’s financial position as it prepares to advance the development of its 617,000-square-foot data center in Michigan into a major hub for AI infrastructure. The move underscores Hyperscale Data’s focus on long-term capital discipline, operational execution and value creation for stockholders.

“This $20 million reduction in debt is an important step for Hyperscale Data,” said Milton “Todd” Ault III, Founder and Executive Chairman of Hyperscale Data. “By strengthening our balance sheet, we’re better positioned to accelerate the buildout of our Michigan AI facility, an asset we believe is poised to become a premier AI data center location in North America. Further, we expect to soon announce that we have begun the procurement of critical components necessary to support the requirements of an AI data center as well as begin work on increasing the existing capacity to deploy an additional 40 megawatts (‘MW’) of power.”

Following the reduction, the Company believes its remaining debt is relatively insignificant in the context of its strategic growth plans. With a more agile capital structure, Hyperscale Data is now focused on scaling operations, onboarding enterprise and hyperscale customers and unlocking the full potential of its infrastructure.

In February 2025, the Company’s indirect, wholly owned subsidiary, Alliance Cloud Services, LLC (“ACS”), reached an agreement in principle with its primary local utility to expand available power from approximately 30 MW to 300 MW. Completion of this upgrade is expected to take approximately 44 months from the execution of a formal letter of authorization, which is currently under negotiation.

Additionally, ACS has reached an agreement in principle with the local natural gas utility to supply an extra 40 MW of power. This portion of the project is expected to be completed within 18 months of executing definitive agreements. In total, these upgrades would expand the facility’s capacity to approximately 340 MW. Once completed, the facility is expected to support hyperscale cloud providers, AI model training and enterprise computing use cases spanning machine learning, advanced analytics and real-time inference.

The Company sees strong validation in the market for large-scale AI data centers. For example, Applied Digital Corporation recently secured a 15-year hosting contract with CoreWeave, Inc., expected to generate over $7 billion in aggregate revenue from 250 MW of AI and high-performance computing (“HPC”) infrastructure.

Hyperscale Data intends to complete its previously announced separation from Ault Capital Group, Inc. (“ACG”) by year-end 2025. After the separation, Hyperscale Data will operate as a focused, standalone AI infrastructure business.

“Our number one priority remains the Michigan buildout,” added Ault. “As AI and enterprise compute demand continues to grow, we believe this project can unlock significant long-term value. Today’s debt reduction enhances our ability to execute on this vision with greater speed and flexibility.”

Successful execution of the Company’s data center strategy will require considerable capital investment and the ability to secure long-term partnerships with leading technology firms. Completion of the power upgrades is subject to a number of risks and uncertainties, one or more which could result in the project being curtailed, delayed or terminated, including, but not limited to: failure to agree upon terms and execute definitive agreements; the inability of the Company or ACS to raise sufficient funds to pay for the power upgrades and other expenditures; failure to obtain regulatory consents and approvals; the inability to obtain sufficient easements, rights-of-way and land rights necessary to the work to be performed, and other presently unforeseen events or conditions.

For more information on Hyperscale Data and its subsidiaries, Hyperscale Data recommends that stockholders, investors and any other interested parties read Hyperscale Data’s public filings and press releases available under the Investor Relations section at or available at

About Hyperscale Data, Inc.

Through its wholly owned subsidiary Sentinum, Inc., Hyperscale Data owns and operates a data center at which it mines digital assets and offers colocation and hosting services for the emerging AI ecosystems and other industries. Hyperscale Data’s other wholly owned subsidiary, ACG, is a diversified holding company pursuing growth by acquiring undervalued businesses and disruptive technologies with a global impact.

Hyperscale Data expects to divest itself of ACG on or about December 31, 2025 (the “Divestiture”). Upon the occurrence of the Divestiture, the Company would solely be an owner and operator of data centers to support HPC services, though it may at that time continue to mine Bitcoin. Until the Divestiture occurs, the Company will continue to provide, through ACG and its wholly and majority-owned subsidiaries and strategic investments, mission-critical products that support a diverse range of industries, including an AI software platform, social gaming platform, equipment rental services, defense/aerospace, industrial, automotive, medical/biopharma and hotel operations. In addition, ACG is actively engaged in private credit and structured finance through a licensed lending subsidiary. Hyperscale Data’s headquarters are located at 11411 Southern Highlands Parkway, Suite 190, Las Vegas, NV 89141.

On December 23, 2024, the Company issued one million (1,000,000) shares of a newly designated Series F Exchangeable Preferred Stock (the “Series F Preferred Stock”) to all common stockholders and holders of the Series C Convertible Preferred Stock on an as-converted basis. The Divestiture will occur through the voluntary exchange of the Series F Preferred Stock for shares of Class A Common Stock and Class B Common Stock of ACG (collectively, the “ACG Shares”). The Company reminds its stockholders that only those holders of the Series F Preferred Stock who agree to surrender such shares, and do not properly withdraw such surrender, in the exchange offer through which the Divestiture will occur, will be entitled to receive the ACG Shares and consequently be stockholders of ACG upon the occurrence of the Divestiture.

Forward-Looking Statements

This press release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements generally include statements that are predictive in nature and depend upon or refer to future events or conditions, and include words such as “believes,” “plans,” “anticipates,” “projects,” “estimates,” “expects,” “intends,” “strategy,” “future,” “opportunity,” “may,” “will,” “should,” “could,” “potential,” or similar expressions. Statements that are not historical facts are forward-looking statements. Forward-looking statements are based on current beliefs and assumptions that are subject to risks and uncertainties.

Forward-looking statements speak only as of the date they are made, and the Company undertakes no obligation to update any of them publicly in light of new information or future events. Actual results could differ materially from those contained in any forward-looking statement as a result of various factors. More information, including potential risk factors, that could affect the Company’s business and financial results are included in the Company’s filings with the U.S. Securities and Exchange Commission, including, but not limited to, the Company’s Forms 10-K, 10-Q and 8-K. All filings are available at and on the Company’s website at .

Hyperscale Data Investor Contact:

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