Ault Alliance’s Subsidiary, Sentinum, Announces Its Montana Bitcoin Mining Site will be Operational and Mining by the End of March 2024

Rhea-AI Summary

Ault Alliance, Inc. announced the delivery of 10 Antbox mobile mining containers to its new data center in Montana, operated by its subsidiary Sentinum, with plans for 26 more deliveries. The facility expects to energize next week and start mining Bitcoin by March 2024, aiming to reach 1,000 miners monthly. The Montana sites' capacity is set to expand with a 10MW boost initially and potential for further growth.

Insights

Market Research Analyst

The delivery and setup of 10 Antbox mobile mining containers at Ault Alliance's new data center in Montana represents a tangible step in the company's expansion into Bitcoin mining operations. The commitment to additional deliveries indicates a strategic investment in infrastructure that can have a significant impact on the company's operational capabilities and revenue potential. With the mining industry being highly energy-intensive, the mention of a 10MW increase in power capacity, potentially expanding to 20MWs, is noteworthy. This expansion could position Ault Alliance to capitalize on the growing demand for Bitcoin mining, which is subject to fluctuations in the cryptocurrency market.

Furthermore, the strategic shift of mining equipment from Michigan to Montana suggests a re-allocation of resources to optimize operations. The Michigan facility's pivot towards high-performance computing and AI use cases reflects a diversification strategy that could mitigate the risks associated with the volatility of cryptocurrency markets. By leveraging redundant, geographically diverse fiber optic connectivity and power expansion capabilities, Ault Alliance may enhance its value proposition in the competitive AI computing space.

Financial Analyst

Ault Alliance's investment in mobile mining containers and the energization of their Montana site is a capital-intensive move that could affect the company's short-term cash flow. Investors should monitor the company's capital expenditures and the impact on its balance sheet, especially considering the need for additional funding to expand capacity. The electrical load study and collaboration with the local utility company indicate forward-thinking in terms of infrastructure scalability, which could be critical for long-term growth.

The market should also consider the timing of these expansions in relation to Bitcoin's price volatility. The end of March 2024 target for initiating Bitcoin mining operations could align with favorable market conditions, or it could face challenges if cryptocurrency values decline. The company's ability to ship at least 1,000 miners a month starting April 2024 until capacity is reached signals aggressive growth plans, which could either significantly boost revenue or increase risk exposure depending on market trends and operational efficiency.

Energy Sector Analyst

The energy requirements for cryptocurrency mining are substantial and Ault Alliance's move to increase their Montana data center's power capacity to 10MWs, with potential expansion to 20MWs, places a spotlight on the energy sector's role in supporting such operations. The company's proactive approach to conducting an electrical load study suggests a strategic understanding of the importance of energy management in mining operations. The collaboration with a local utility for potential power upgrades is a critical factor that may not only affect the company's operational sustainability but also impact local energy grids and markets.

Given the environmental concerns surrounding cryptocurrency mining, Ault Alliance's energy strategy will likely be scrutinized by stakeholders interested in sustainable practices. The ability to significantly expand the capacity at Montana sites will hinge on the outcomes of the load study and the availability of additional funding. This could create opportunities for the company to explore renewable energy sources or innovative energy management solutions to offset the high consumption associated with mining operations.

10 Antbox Mobile Mining Containers Delivered to Montana Site to Date

LAS VEGAS--(BUSINESS WIRE)-- Ault Alliance, Inc. (NYSE American: AULT), a diversified holding company (“Ault Alliance,” or the “Company”), announced today that its new data center in Montana, operated by its wholly owned subsidiary, Sentinum, Inc. (“Sentinum”) had 10 Antbox mobile mining containers delivered and set this week and expects another 26 Antbox mobile mining containers to be delivered over the next few months. Sentinum is completing the process to energize the site, which is expected to be finalized next week. The first couple of miners have been shipped to the facility and will be installed and begin mining Bitcoin by the end of March 2024. Sentinum anticipates shipping at least 1,000 miners a month to the Montana data center starting in April 2024, until capacity is reached.

Sentinum’s new facility in Montana initially boosts its power capacity by 10MWs, and with the second site in Montana that is expected to be built out later this year, has a capacity of approximately 20MWs, with the potential for further expansion. Sentinum believes that the capacity of the Montana sites can be significantly expanded and has begun an electrical load study in collaboration with the local utility to explore potential power upgrades. Sentinum anticipates expanding the capacity at Montana to the extent possible, after determination of the completed load study, subject to additional funding.

William B. Horne, Chief Executive Officer of Ault Alliance, stated, “Sentinum continues to work on improving operations and will begin transferring machines from its Michigan site to its Montana data center. This shift of machines to our Montana site will allow us to focus on expansion at our Michigan site to support the rapid growth of high-performance computing and artificial intelligence (“AI”) use cases. The Michigan facility, which features redundant, geographically diverse, fiber optic connectivity from multiple carriers and significant power expansion capabilities, was designed to meet the demands of AI computing and it was always our intention that the Michigan site would have minimal exposure to our mining operations. We thank the Sentinum team for its efforts in executing on this key strategic plan.”

For more information on Ault Alliance and its subsidiaries, Ault Alliance recommends that stockholders, investors, and any other interested parties read Ault Alliance’s public filings and press releases available under the Investor Relations section at www.Ault.com or at www.sec.gov.

About Ault Alliance, Inc.

Ault Alliance, Inc. is a diversified holding company pursuing growth by acquiring undervalued businesses and disruptive technologies with a global impact. Through its wholly and majority-owned subsidiaries and strategic investments, Ault Alliance owns and operates a data center at which it mines Bitcoin and offers colocation and hosting services for the emerging artificial intelligence ecosystems and other industries, and provides mission-critical products that support a diverse range of industries, including metaverse platform, oil exploration, crane services, defense/aerospace, industrial, automotive, medical/biopharma, consumer electronics, hotel operations and textiles. In addition, Ault Alliance extends credit to select entrepreneurial businesses through a licensed lending subsidiary. Ault Alliance’s headquarters are located at 11411 Southern Highlands Parkway, Suite 240, Las Vegas, NV 89141; www.Ault.com.

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 www.sec.gov and on the Company’s website at www.Ault.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240322469095/en/

Ault Alliance Investor Contact:

IR@Ault.com or 1-888-753-2235

Source: Ault Alliance, Inc.

FAQ

How many Antbox mobile mining containers were delivered to the Montana site?

Ault Alliance announced the delivery of 10 Antbox mobile mining containers to its Montana data center.

When is the Montana site expected to start mining Bitcoin?

The Montana site is expected to start mining Bitcoin by the end of March 2024.

What is the power capacity boost for the Montana site initially?

The Montana site initially boosts its power capacity by 10MWs.

How many miners are anticipated to be shipped monthly to the Montana data center starting in April 2024?

At least 1,000 miners are anticipated to be shipped monthly to the Montana data center starting in April 2024.

What is the total power capacity of the Montana sites with the second site expected to be built out?

The total power capacity of the Montana sites, with the second site expected to be built out, is approximately 20MWs.