LAS VEGAS – Ault Alliance, Inc. (NYSE American: AULT), a diversified holding company, announced it will now operate under the name Hyperscale Data, Inc. and will change its stock ticker to ‘GPUS’ starting September 10, 2024. The rebranding reflects the company’s strategic shift towards enhancing its data center operations, particularly its artificial intelligence (AI) data center in Michigan.
The Michigan facility is set to undergo a significant expansion, with plans to increase its capacity from approximately 30 megawatts to 300 megawatts. This growth is contingent on obtaining necessary regulatory approvals and securing adequate financing. The expansion is in response to the rising demand for data center power, which is being driven by advancements in AI technology.
Milton “Todd” Ault III, Executive Chairman of Hyperscale Data, emphasized the importance of the Michigan data center in meeting the growing need for AI infrastructure. He stated, “Our Michigan facility and expanded services will be pivotal in addressing the escalating demand for AI-driven infrastructure.” Ault also indicated that the company aims to position itself as a pure-play data center business to maximize returns for stockholders.
The company’s focus on data center operations comes at a time when the industry is experiencing a surge in demand due to the rapid growth of AI and other data-intensive technologies. Hyperscale Data’s strategic direction appears to align with these market trends.
Current stockholders of Ault Alliance do not need to take any action due to the rebranding and ticker symbol change. The company has also hinted at forthcoming announcements regarding management’s plans to further develop its data center business.
This news is based on a press release statement from the company. For additional information on Ault Alliance and its subsidiaries, public filings and press releases can be accessed through the Investor Relations section of their website.
Hyperscale Data, through its subsidiaries and strategic investments, continues to operate in various sectors, including Bitcoin mining, AI ecosystems hosting services, and other industries, while also engaging in private credit and structured finance. The company’s headquarters are in Las Vegas, Nevada.
In other recent news, Ault Alliance, Inc. has announced a significant rebranding to Hyperscale Data, Inc., along with a change in their trading symbols on the NYSE American. The rebranding initiative, which doesn’t require stockholder approval, is expected to enhance the company’s corporate identity and align with its strategic direction. Hyperscale Data reported a revenue of $76.3 million for the first half of 2024 and total assets amounting to $271 million. Analysts from Goldman Sachs suggest that the company’s strategic reorganization aligns with industry trends, as AI could drive a 160% surge in data center power demand. As part of its capital-raising efforts, Hyperscale Data sold 300 shares of Series C convertible preferred stock and accompanying warrants for a total of $300,000. These recent developments follow the company’s move to expand its Michigan-based data center’s capacity tenfold, contingent upon receiving state regulatory approvals and securing adequate funding. Furthermore, shareholders have approved the conversion of a 10% OID Convertible Promissory Note into common stock, a move that could potentially influence the company’s capital structure.
As Hyperscale Data, formerly known as Ault Alliance, embarks on its ambitious expansion of the Michigan AI data center, investors are closely monitoring the company’s financial health and stock performance. According to InvestingPro data, Hyperscale Data currently has a market capitalization of $7.94 million and is trading at a low Price / Book multiple of 0.3. This valuation metric is particularly noteworthy as it suggests that the company’s stock is trading below the value of its net assets, which could indicate a potential undervaluation or reflect the market’s assessment of the company’s future prospects.
InvestingPro Tips highlight several challenges faced by the company. Hyperscale Data operates with a significant debt burden and may struggle to make interest payments on its debt. Additionally, the company has been quickly burning through cash, which raises concerns about its financial sustainability during the planned expansion phase. It’s also worth noting that the stock price has been quite volatile, which could be a factor for investors with a low risk tolerance. For those considering an investment in Hyperscale Data, it’s important to assess these financial health indicators alongside the company’s strategic growth initiatives.
Despite recent challenges, the company’s focus on enhancing its data center operations to meet the demands of AI infrastructure could offer a long-term growth trajectory. For investors seeking additional insights, there are over 10 InvestingPro Tips available on the platform, which provide a deeper analysis of Hyperscale Data’s financials and stock performance. These tips can be accessed through the InvestingPro product at https://www.investing.com/pro/AULT.
Lastly, the InvestingPro Fair Value estimate for Hyperscale Data stands at $0.29, which exceeds the previous close price of $0.20. This disparity may suggest that the stock holds potential value that has not yet been recognized by the market, providing an interesting point of consideration for potential investors.
