Dominari Announces Strategic Entry into U.S. AI Data Center Market

Rhea-AI Summary

Dominari Holdings (Nasdaq: DOMH) has announced the creation of American Data Centers Inc. (ADC), a new venture focused on high-performance computing infrastructure. Dominari holds a 32% stake in ADC, which includes partnerships with Donald J. Trump Jr., Eric Trump, and AI industry professionals.

The initiative aims to develop energy-efficient data centers across key U.S. markets to support growing demands in cloud computing, AI applications, cryptocurrency mining, and enterprise data storage. The company emphasizes the importance of strengthening American AI infrastructure to meet global technology demands.

Additionally, Dominari has declared a special cash dividend of $0.32 per share, totaling approximately $4.6 million, to be paid on March 3, 2025, to stockholders of record as of February 24, 2025.

Positive

• Strategic entry into the high-growth AI data center market
• Secured partnerships with prominent industry figures
• 32% ownership stake in American Data Centers Inc.
• Special cash dividend of $0.32 per share ($4.6M total) announced

Negative

• None.

Insights

Investment Strategist

The dual announcement from Dominari Holdings represents a strategic pivot into the high-growth AI infrastructure sector while simultaneously returning capital to shareholders. The formation of American Data Centers Inc. (ADC) positions Dominari to capture a share of the rapidly expanding AI data center market, which is projected to grow at a CAGR of over 20% through 2030.

The 32% ownership stake in ADC provides Dominari with significant exposure to the AI infrastructure sector while limiting direct operational risk. This structure allows the company to leverage industry expertise through partnerships while maintaining strategic influence. The involvement of established industry professionals suggests a well-rounded approach to market entry, though success will largely depend on execution and capital deployment strategies.

The announcement of a special cash dividend of $0.32 per share, totaling $4.6 million, raises interesting questions about capital allocation. While returning capital to shareholders demonstrates financial strength, it's important to evaluate whether this capital might be better deployed in the new ADC venture, especially given the capital-intensive nature of data center development. The timing suggests management's confidence in maintaining adequate liquidity for both initiatives.

The strategic focus on domestic AI infrastructure aligns with growing national security concerns and the push for technological sovereignty. This positions ADC to potentially benefit from government initiatives and partnerships focused on strengthening domestic AI capabilities. However, success in the data center market requires substantial capital investment, technical expertise, and the ability to secure prime locations with access to reliable power sources.

Critical success factors for this venture will include:

• Ability to secure strategic locations with favorable power costs and connectivity
• Implementation of energy-efficient technologies to maintain competitive operating costs
• Speed to market in establishing operational facilities
• Success in securing anchor tenants and long-term contracts

Special Cash Dividend Determined to be $0.32 per Share.

NEW YORK CITY, NY / ACCESS Newswire / February 18, 2025 / Dominari Holdings Inc. (Nasdaq:DOMH) (the "Company" or "Dominari") today announced the creation of American Data Centers Inc. ("ADC"). ADC is an independent company, whose members include Dominari, Donald J. Trump Jr., Eric Trump and other industry professionals in the AI space. This new venture is designed to address the growing demand for high-performance computing infrastructure. Dominari currently holds a 32% interest in ADC.

Kyle Wool, President of Dominari Holdings stated, "The demand for cloud computing, AI-driven applications, cryptocurrency mining, and enterprise data storage is expanding at an unprecedented rate. Through this initiative, we aim to build a robust portfolio of cutting-edge, energy-efficient data centers strategically located in key markets across the U.S. Strengthening American AI infrastructure is vital to support the global rise in demand for these technologies. This venture aligns with our broader strategy to invest in high-growth industries and deliver lasting value to our shareholders."

Eric Trump, a member of the Dominari's Advisory Board, remarked, "The establishment of ADC is crucial for the development of AI infrastructure in the United States. With the soaring demand for data and an urgent need for scalable and efficient data solutions, ADC is poised to become a leading player in the rapidly advancing AI sector, ensuring that America can rely on homegrown solutions to power its AI backbone."

On February 11, the Company announced that its board of directors had declared a special cash dividend of $4 million, in the aggregate, to its stockholders of record as of the close of business on February 24, 2025. Following the recent closing of Dominari's financings, it has been determined that the special cash dividend will be $0.32 per share, approximately $4.6 million in the aggregate, and is expected to be paid on March 3, 2025.

For additional information about Dominari Holdings Inc., please visit: https://www.dominariholdings.com/

About Dominari Holdings Inc.

The Company is a holding company that, through its various subsidiaries, is currently engaged in wealth management, investment banking, sales and trading and asset management. In addition to capital investment, Dominari provides management support to the executive teams of its subsidiaries, helping them to operate efficiently and reduce cost under a streamlined infrastructure. In addition to organic growth, the Company seeks opportunities outside of its current business to enhance stockholder value, including in the AI and Data Center sector.

Forward-Looking Statements:

Forward-looking statements in this release are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements can generally be identified by the use of forward-looking terminology, including the terms "believes," "estimates," "anticipates," "expects," "feels," "seeks," "forecasts," "projects," "intends," "plans," "may," "will," "should," "could" or "would" or, in each case, their negative or other variations or comparable terminology. These forward-looking statements include all matters that are not historical facts and include statements regarding Dominari and its subsidiaries' intentions, beliefs or current expectations concerning, among other things, their results of operations, financial condition, liquidity, prospects, growth, strategies, capital expenditures, their potential entry into the AI and data center sector, and the industries in which they operate. By their nature, forward-looking statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. Although Dominari has based these forward-looking statements on assumptions that it believes are reasonable when made in light of the information currently available to it, Dominari cautions you that forward-looking statements are not guarantees of future performance and that Dominari's actual results of operations, financial condition and liquidity, and industry developments may differ materially from statements made in or suggested by the forward-looking statements contained in this release. The Company expressly disclaims any obligation to update or alter statements whether as a result of new information, future events or otherwise, except as required by law. For additional factors that could cause Dominari's actual results to differ materially from the forward-looking statements, please refer to our most recent annual report on Form 10-K and quarterly reports on Form 10-Q filed with the SEC.

Contacts:

Dominari Holdings Inc.
https://www.dominariholdings.com/
info@dominarisecurities.com
212-393-4500

SOURCE: Dominari Holdings Inc.

View the original press release on ACCESS Newswire

FAQ

What is Dominari Holdings' (DOMH) ownership stake in American Data Centers Inc.?

Dominari Holdings holds a 32% interest in American Data Centers Inc. (ADC).

When will DOMH pay its special cash dividend of $0.32 per share?

The special cash dividend will be paid on March 3, 2025, to stockholders of record as of February 24, 2025.

What is the total value of DOMH's special cash dividend announced in February 2025?

The total value of the special cash dividend is approximately $4.6 million.

What markets will American Data Centers Inc. target through DOMH's investment?

ADC will target markets including cloud computing, AI-driven applications, cryptocurrency mining, and enterprise data storage across key U.S. locations.

Who are the key partners in DOMH's American Data Centers Inc. venture?

Key partners include Donald J. Trump Jr., Eric Trump, and other AI industry professionals.