Ault Alliance Sets 2024 Revenue Goals at $230-$240 Million

Rhea-AI Summary

Ault Alliance, Inc. (NYSE American: AULT) outlines 2024 revenue objectives of $230-240 million, completes $38.5 million debt repayment, and highlights growth at Sentinum, Inc. and Circle 8 Crane Services, LLC.

Insights

Financial Analyst

The disclosure of Ault Alliance, Inc.'s revenue objectives for 2024, with a targeted gross consolidated revenue range of $230 to $240 million, alongside the completion of a significant debt repayment, is a clear indicator of the company's financial strategy and operational performance. These factors are critical in assessing the company's growth trajectory and financial health, which are of interest to current and potential investors, as well as market analysts.

The debt repayment is particularly noteworthy as it reduces the company's leverage and interest expenses, potentially improving net income margins and creditworthiness. This can be seen as a positive signal to the market, indicating a stronger balance sheet and a commitment to financial discipline. Moreover, the focus on key business segments such as data center operations, Bitcoin mining and crane rental services suggests a strategic allocation of resources to areas with perceived high growth potential.

However, the company's forward-looking statements come with caveats, acknowledging risks such as project delays, Bitcoin market volatility, mining difficulty and the impact of Bitcoin halving on profitability. These factors are essential for stakeholders to consider as they could significantly influence the company's ability to meet its revenue targets.

Industry Analyst

Within the context of the diversified holding company's operations, the performance of Sentinum, Ault Alliance's data center and Bitcoin mining arm, is particularly significant. The data center industry is marked by high capital expenditure but also high potential returns due to the increasing demand for data processing and storage. The transfer of Bitcoin miners to a new data center in Montana indicates an expansion that could capitalize on this demand.

Additionally, the performance of Circle 8 Crane Services reflects the company's strength in the industrial services sector, which is often tied to broader economic trends such as construction and infrastructure development. The crane rental business is a barometer for such activities and can be a leading indicator of the company's performance in related markets.

It is important to note the inherent risks associated with Bitcoin mining, such as price volatility and regulatory changes, which can have a substantial impact on profitability. The mention of the upcoming Bitcoin halving is particularly relevant as it will reduce the reward for mining new blocks, potentially increasing competition and affecting the bottom line for miners.

Cryptocurrency Expert

The Bitcoin mining sector is a volatile yet potentially lucrative component of Ault Alliance's portfolio. The company's mention of the forthcoming Bitcoin halving event is a critical factor that will affect the mining rewards and thus, the revenue and profitability of this segment. The halving event, which occurs approximately every four years, has historically led to increased interest in Bitcoin and could potentially drive up the price, albeit with increased mining difficulty and competition.

The volatility in Bitcoin's market price is a double-edged sword; it can lead to substantial gains in good times but can also result in significant losses. The company's strategy in the cryptocurrency sector should be closely monitored, as it will have a direct impact on their financial performance and risk profile. Investors and analysts need to assess the company's ability to adapt to changes in mining difficulty and the overall cryptocurrency market conditions.

LAS VEGAS--(BUSINESS WIRE)-- Ault Alliance, Inc. (NYSE American: AULT), a diversified holding company (“Ault Alliance,” or the “Company”), today outlined its revenue objectives and other corporate initiatives for 2024. The Company is targeting gross consolidated revenue between $230 million and $240 million. Additionally, Ault Alliance reiterates that it has successfully completed the repayment of its $38.5 million senior secured debt as of December 14, 2023. The Company is updating the market with these projections based upon substantial growth at Sentinum, Inc. (“Sentinum”), its data center operations and Bitcoin mining sector, further complemented by the strong performance of its crane rental business, Circle 8 Crane Services, LLC (“Circle 8”).

These announcements mark significant achievements for the Company, showcasing its commitment to sustainable growth, financial discipline and enhancing stockholder value. The upcoming exchange offer alongside the debt repayment highlight the Company’s efforts to improve its capital structure and future capital management strategy. The significant growth in Sentinum’s operations, along with Circle 8’s exceptional performance, demonstrate the Company’s dedication to its core verticals and commitment to these industries.

Milton “Todd” Ault III, Executive Chairman of Ault Alliance, emphasized, “Our revenue targets for 2024, the completed debt repayment, and our focus on our key business segments reflect our diversified approach to business growth and our commitment to enhancing stockholder value. Each of these sectors plays a critical role in our collective success, underscoring our ability to capitalize on emerging market opportunities and technological advancements.”

The Company notes that all estimates and other projections are subject to a number of factors that could result in decreased revenue for fiscal 2024, including, but in no way not limited to: (i) the unforeseen delays in completing the buildout of the Company’s new data center in Montana and the transfer of Bitcoin miners to that location from current third party hosted centers; (ii) the volatility in, and downward pressure on, Bitcoin’s market price; (iii) the increase in the Bitcoin mining difficulty level and the impact of the forthcoming halving; (iv) revenues and profits generated by its wholly owned subsidiary Ault Lending, LLC, which includes unrealized gains and losses on marketable securities from changes in prices, which can cause significant volatility between periods; and (v) a significant number of other factors that could adversely impact the results of production or operations.

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 a 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/20231226893905/en/

Ault Alliance Investor Contact:

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

Source: Ault Alliance, Inc.

FAQ

What are Ault Alliance, Inc.'s revenue objectives for 2024?

Ault Alliance, Inc. aims to achieve gross consolidated revenue between $230 million and $240 million in 2024.

What significant achievements has Ault Alliance, Inc. announced?

Ault Alliance, Inc. has successfully completed the repayment of its $38.5 million senior secured debt and highlighted substantial growth at Sentinum, Inc. and exceptional performance of Circle 8 Crane Services, LLC.

What factors could impact Ault Alliance, Inc.'s revenue for fiscal 2024?

Factors that could result in decreased revenue for fiscal 2024 include unforeseen delays in completing the buildout of the new data center, volatility in Bitcoin's market price, increase in Bitcoin mining difficulty level, revenues and profits generated by its wholly owned subsidiary Ault Lending, LLC, and other factors.

Where can stockholders and investors find more information about Ault Alliance, Inc.?

Stockholders, investors, and interested parties can find more information on Ault Alliance and its subsidiaries in the Investor Relations section at www.Ault.com or at www.sec.gov.