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Hyperscale Data Issues Letter to Stockholders

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Hyperscale Data (NYSE American: GPUS) has shared a letter from its CEO highlighting the potential of its Michigan data center amid the AI evolution. The facility, powered by nuclear and natural gas, is strategically positioned to become the company's most valuable asset. Hyperscale Data plans to expand its capacity from approximately 30 MW to 300 MW, subject to regulatory approvals and funding.

The company is positioning itself as a pure-play data center business, focusing on Michigan and Montana. It aims to generate long-term cash flow by securing a leading role in the AI data center sector. Hyperscale Data plans to distribute its non-core assets to stockholders via special distributions, including its crane rental, lending, defense, and hotel and real estate businesses.

Hyperscale Data (NYSE American: GPUS) ha condiviso una lettera del suo CEO che evidenzia il potenziale del suo centro dati nel Michigan in mezzo all'evoluzione dell'AI. La struttura, alimentata da energia nucleare e gas naturale, è strategicamene posizionata per diventare l'asset più prezioso dell'azienda. Hyperscale Data prevede di espandere la sua capacità da circa 30 MW a 300 MW, soggetta ad approvazioni regolatorie e finanziamenti.

L'azienda si sta posizionando come un business di data center puramente focalizzato, concentrandosi sul Michigan e sul Montana. Mira a generare flussi di cassa a lungo termine assicurandosi un ruolo di leadership nel settore dei data center per l'AI. Hyperscale Data intende distribuire i suoi asset non strategici agli azionisti tramite distribuzioni speciali, inclusi i suoi affitti di gru, prestiti, difesa, oltre alle attività alberghiere e immobiliari.

Hyperscale Data (NYSE American: GPUS) ha compartido una carta de su CEO destacando el potencial de su centro de datos en Michigan en medio de la evolución de la IA. La instalación, alimentada por energía nuclear y gas natural, está estratégicamente posicionada para convertirse en el activo más valioso de la empresa. Hyperscale Data planea expandir su capacidad de aproximadamente 30 MW a 300 MW, sujeto a aprobaciones regulatorias y financiamiento.

La empresa se está posicionando como un negocio de centro de datos puro, enfocándose en Michigan y Montana. Su objetivo es generar flujo de efectivo a largo plazo asegurando un papel destacado en el sector de centros de datos de IA. Hyperscale Data planea distribuir sus activos no esenciales a los accionistas a través de distribuciones especiales, incluidos sus alquileres de grúas, préstamos, defensa, así como sus negocios hoteleros e inmobiliarios.

Hyperscale Data (NYSE American: GPUS)는 CEO의 편지를 통해 AI 진화 속에서 미시간 데이터 센터의 잠재력을 강조했습니다. 이 시설은 원자력과 천연가스로 운영되며 회사의 가장 귀중한 자산이 될 전략적 위치에 있습니다. Hyperscale Data는 용량을 약 30 MW에서 300 MW로 확장할 계획이며, 이는 규제 승인 및 자금 조달에 따라 다릅니다.

회사는 미시간과 몬타나에 중점을 두고 순수 데이터 센터 비즈니스로 자리매김하고 있습니다. AI 데이터 센터 분야에서 선도적인 역할을 확보하여 장기적인 현금 흐름을 창출하는 것을 목표로 하고 있습니다. Hyperscale Data는 크레인 임대, 대출, 방어, 호텔 및 부동산 사업을 포함한 비주요 자산을 특별 배당을 통해 주주에게 분배할 계획입니다.

Hyperscale Data (NYSE American: GPUS) a partagé une lettre de son PDG soulignant le potentiel de son centre de données dans le Michigan au milieu de l'évolution de l'IA. Le site, alimenté par l'énergie nucléaire et le gaz naturel, est stratégiquement situé pour devenir l'actif le plus précieux de l'entreprise. Hyperscale Data prévoit d'augmenter sa capacité d'environ 30 MW à 300 MW, sous réserve d'approbations réglementaires et de financements.

L'entreprise se positionne comme une société de centres de données pure-play, en se concentrant sur le Michigan et le Montana. Elle vise à générer un flux de trésorerie à long terme en sécurisant un rôle de leader dans le secteur des centres de données d'IA. Hyperscale Data prévoit de distribuer ses actifs non essentiels à ses actionnaires par le biais de distributions spéciales, y compris ses locations de grues, ses prêts, ses activités de défense ainsi que ses affaires hôtelières et immobilières.

Hyperscale Data (NYSE American: GPUS) hat einen Brief seines CEOs veröffentlicht, der das Potenzial seines Datenzentrums in Michigan im Zuge der KI-Entwicklung hervorhebt. Die Anlage, die mit Kern- und Erdgas betrieben wird, ist strategisch so positioniert, dass sie das wertvollste Gut des Unternehmens werden kann. Hyperscale Data plant, seine Kapazität von etwa 30 MW auf 300 MW zu erweitern, vorbehaltlich regulatorischer Genehmigungen und Finanzierungen.

Das Unternehmen positioniert sich als reines Datenzentrumsgeschäft und konzentriert sich auf Michigan und Montana. Ziel ist es, langfristige Cashflows zu generieren, indem man eine führende Rolle im KI-Datenzentrum-Sektor einnimmt. Hyperscale Data plant, seine nicht zum Kerngeschäft gehörenden Vermögenswerte über Sonderdividenden an die Aktionäre zu verteilen, einschließlich seines Kranverleihs, der Kredite, der Verteidigung sowie der Hotel- und Immobiliengeschäfte.

Positive
  • Strategic positioning of Michigan data center for AI industry growth
  • Plans to expand data center capacity from 30 MW to 300 MW
  • Potential for long-term cash flow generation in AI data center sector
  • Planned distribution of non-core assets to stockholders
Negative
  • Expansion plans subject to regulatory approvals and uncertain funding
  • No assurance of obtaining necessary financing or approvals for special dividends

Insights

Hyperscale Data's strategic pivot towards becoming a pure-play AI data center business is a significant move in a rapidly growing market. The company's Michigan facility, with its 14 acres under roof and 20 open acres for expansion, positions it well to capitalize on the projected doubling of global data center power demand by 2030. The plan to increase capacity from 30 MW to 300 MW is ambitious and could lead to substantial revenue growth if executed successfully.

However, investors should note that this expansion is contingent on regulatory approvals and adequate funding, which are not guaranteed. The company's intention to distribute non-core assets to stockholders could streamline operations but may also impact short-term financials. While the potential is significant, with industry deals like CoreWeave's $6.7 billion contract setting high expectations, Hyperscale Data still needs to secure major tenants and complete its expansion to realize this potential.

Hyperscale Data's focus on AI-driven data centers aligns with the industry's trajectory. The facility's power sources—nuclear and natural gas—provide a competitive edge in the push for sustainable AI infrastructure. The company's strategic location and existing fiber connectivity make it an attractive option for AI companies requiring high-performance computing capabilities.

The interest from both startups and Fortune 25 companies indicates market validation of the facility's potential. However, the AI data center market is becoming increasingly competitive, with established players also expanding their offerings. Hyperscale Data will need to move quickly to secure long-term contracts and differentiate its services. The planned capacity expansion to 300 MW is substantial and could position the company as a significant player in the AI infrastructure space if executed timely and efficiently.

The AI infrastructure market is experiencing explosive growth, driven by advancements in large language models and increasing enterprise AI adoption. Hyperscale Data's pivot comes at an opportune time, but it's entering a competitive field dominated by established players. The company's success will hinge on its ability to quickly secure long-term, high-value tenants and efficiently scale its operations.

The planned divestiture of non-core assets could provide capital for expansion but may also introduce short-term volatility. Investors should closely monitor the company's progress in securing contracts and regulatory approvals. While the potential upside is significant, as evidenced by deals like Core Scientific's, Hyperscale Data is still in the early stages of its transformation. The market's reception to the company's rebranding and strategic shift will be important in determining its valuation and ability to attract investment for its ambitious expansion plans.

Hyperscale Data Emphasizes the Potential of Its Data Center Business

LAS VEGAS--(BUSINESS WIRE)-- Hyperscale Data, Inc. (NYSE American: GPUS), a diversified holding company (“Hyperscale Data,” or the “Company”), today shared a letter from its Chief Executive Officer to its stockholders.

Dear Stockholders,

I hope this message finds you well. I am pleased to share developments that underscore the potential of our Michigan data center amidst the ongoing artificial intelligence (“AI”) evolution. We believe that our Michigan data center is an exceptional property, with 14 acres under roof and an additional 20 open acres for potential future development. This facility is powered by both nuclear and natural gas, providing clean power with a reduced environmental impact. With multiple fiber providers servicing the building and an infrastructure poised for expansion, we believe that our Michigan data center is strategically positioned to become our most valuable asset.

The market for AI data centers is flourishing, bolstered by rapid advancements and demand for technologies like NVIDIA’s AI hardware powering large-language models, such as ChatGPT and Claude. We have seen recent transactions, such as Core Scientific, Inc. securing a hosting contract to deliver about 382 megawatts (“MW”) of infrastructure to the AI company CoreWeave, reflecting the burgeoning demand and significant stakes at play. Further supporting our enthusiasm, a recent Goldman Sachs report indicates that global data center power demand is expected to more than double by 2030 due to AI. This prospective explosion in demand could represent a prime opportunity for us to lead and benefit from this transformative period. As the AI landscape expands, we are positioning our Michigan facility to service the data infrastructure industry and accommodate these cutting-edge developments.

We have received inquiries from a wide range of companies, from innovative AI startups to Fortune 25 industry leaders, that are interested in exploring our Michigan facility. We are engaged in multiple discussions with potential AI companies, many of which are interested in leasing the entire data center to support their expanding AI operations.

Recently, industry leader Core Scientific secured a hosting contract to deliver about 382 megawatts (“MW”) of infrastructure to CoreWeave, with projected cumulative revenue of approximately $6.7 billion, reflecting the burgeoning demand and significant stakes at play. We are excited about replicating such success with our Michigan facility, which we believe will soon house a major AI tenant. Inquiries for our Michigan facility span top-tier companies looking to establish long-term leases, leveraging the site’s potential to support AI advancements.

Hyperscale will focus on building out its Michigan AI data center, with plans to expand its capacity from the current approximately 30 MW to approximately 300 MW, subject to the Company’s receipt of state regulatory approvals and adequate funding, which it may or may not obtain.

Hyperscale is positioning to be a pure-play data center business, with its focal points in Michigan and Montana. This would allow us to concentrate on maximizing the potential of our data centers. We aim to generate substantial long-term cash flow by securing a leading role within the AI data center sector. Additionally, our name and symbol change underscore our strategic focus and determination to leverage our robust infrastructure and prime location in Michigan as a key driver for growth.

As part of this commitment, we plan to distribute our remaining non-core assets to stockholders via one or more special distributions. This includes our crane rental business, lending business, defense business and hotel and real estate business. We are diligently working to ensure this distribution is executed efficiently, to maximize value for our stockholders. The Company anticipates providing an update on its progress made in October.

I am optimistic about the future and remain committed to maximizing stockholder value. We appreciate your continued support as we forge ahead in this promising landscape.

Warm regards,

William B. Horne

Chief Executive Officer, Hyperscale Data

Please note that the terms of any special dividend, including the timing of the issuance of any such dividends, are not provided within this press release. Stockholders should refer to the Company’s official announcements, as and when announced. Any such special dividends will be subject to various regulatory requirements and approvals, including but not limited to board approval, NYSE American approval, NYSE American rules and regulations, the potential requirement to file one or more registration statements with the Securities and Exchange Commission, the availability of requisite financing and market conditions, among other matters. There are no assurances that the Company will be able to obtain the necessary financing, approvals or be able to comply with the required corporate governance requirements. The Company will provide further information as developments so warrant.

This press release is for informational purposes only and neither does nor shall constitute an offer to sell, nor the solicitation of an offer to purchase, shares of the Company’s common stock or any other securities of the Company. No distribution will be made to any person in any jurisdiction in which such offer, solicitation or sale is unlawful. Any distribution of securities will be made only in compliance with all applicable rules and regulations.

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 https://hyperscaledata.com/ or available at www.sec.gov.

About Hyperscale Data

Hyperscale Data 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, Hyperscale Data 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. It also provides mission-critical products that support a diverse range of industries, including a social gaming platform, equipment rental services, defense/aerospace, industrial, automotive, medical/biopharma, hotel operations and textiles. In addition, Hyperscale Data 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 240, Las Vegas, NV 89141; Hyperscale Data, Inc.

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.hyperscaledata.com.

Hyperscale Data Investor Contact:

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

Source: Hyperscale Data, Inc.

FAQ

What is Hyperscale Data's (GPUS) plan for its Michigan data center?

Hyperscale Data plans to expand its Michigan data center capacity from approximately 30 MW to 300 MW, positioning it for the growing AI industry demand.

How does Hyperscale Data (GPUS) plan to focus its business?

Hyperscale Data is positioning itself as a pure-play data center business, focusing on its facilities in Michigan and Montana.

What non-core assets does Hyperscale Data (GPUS) plan to distribute to stockholders?

Hyperscale Data plans to distribute its crane rental, lending, defense, and hotel and real estate businesses to stockholders via special distributions.

What are the potential challenges for Hyperscale Data's (GPUS) expansion plans?

Hyperscale Data's expansion plans are subject to regulatory approvals and adequate funding, which the company may or may not obtain.

Hyperscale Data, Inc.

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