Ault & Company Invests $55 Million in Hyperscale Data, Citing Major Valuation Gap

Ault & Company, Inc., a private holding company controlled by Milton "Todd" Ault III, announced on September 25, 2026 that it has invested $55 million of capital directly into Hyperscale Data, Inc., an NYSE American-listed company, through the purchase of convertible preferred stock. The figure does not include funds expended by Ault & Company or its affiliates in purchasing Hyperscale Data common stock through open market purchases.

The investment underscores Ault & Company's conviction that a significant disconnect exists between Hyperscale Data's current public market valuation and the underlying value of its assets and businesses. Ault & Company and its affiliates currently beneficially own approximately 62% of Hyperscale Data, according to a Schedule 13D/A Amendment No. 19 filed with the U.S. Securities and Exchange Commission on September 15, 2026.

Central to the investment thesis is Hyperscale Data's Michigan AI data center campus, owned and operated by its wholly owned subsidiary, Alliance Cloud Services, LLC. The company has reported investing more than $70 million into the facility and has executed a master services agreement for an initial 20 megawatts of critical AI compute capacity, with the customer holding the right to expand deployment to a total of 52 MW. Hyperscale Data expects revenue from the initial 20 MW deployment to exceed $1.2 billion if the MSA remains in effect for its maximum 20-year term. Should the customer exercise its expansion right and the additional capacity remain contracted for the applicable maximum term, total potential contract revenue could exceed $3.0 billion.

The contemplated 52 MW deployment could represent less than 20% of the approximately 340 MW of total potential capacity that ACS believes can ultimately be available. However, Hyperscale Data has advised that development of any capacity beyond the initial 20 MW covered by the MSA is subject to financing, regulatory approvals, engineering, utility agreements, infrastructure availability, customer demand and other conditions.

Hyperscale Data management has stated that it presently believes the Michigan campus could support a valuation of approximately $750 million to $1.25 billion, with $750 million set as the minimum valuation at which management believes a sale would merit serious consideration. The range represents management's assessment and is not an independent appraisal or an assurance that a transaction could occur at either amount. Hyperscale Data reported approximately $360 million of total assets as of June 30, 2026, reflecting its Michigan investment, operating businesses and other holdings, along with $34.8 million of consolidated revenue for the quarter ended June 30, 2026. Its interests span defense and aerospace, crane rental, hotels, commercial lending, blockchain technology and software, in addition to its Michigan AI data center. As of September 13, 2026, the company reported approximately $51 million of Bitcoin, cash and restricted cash.

"We have committed substantial capital to Hyperscale Data because we believe in the value of what it owns and the opportunities ahead," said Mr. Ault, Chief Executive Officer of Ault & Company and Executive Chairman of Hyperscale Data. "The Michigan campus has an executed customer agreement, significant capital invested and the potential to expand. Management believes that the campus could support a valuation of $750 million to $1.25 billion. Beyond Michigan, Hyperscale Data has established operating businesses and other strategic assets. As its largest stockholder, Ault & Company, together with its affiliates, is focused on supporting Hyperscale in the work needed to develop these assets and demonstrate their value over time."

Ault & Company expects to continue evaluating additional investments in Hyperscale Data, including its right to purchase up to an additional $96 million of series H convertible preferred stock, subject to market conditions, applicable securities laws and other considerations.