Hyperscale Data Issues Letter to Stockholders from Executive Chairman

"I never want to sell Bitcoin again," says Founder and Executive Chairman as Company Outlines Bitcoin-Anchored Strategy

LAS VEGAS, Nov. 14, 2025 /PRNewswire/ -- Hyperscale Data, Inc. (NYSE:GPUS), an artificial intelligence ("AI") data center company anchored by Bitcoin ("Hyperscale Data" or the "Company"), today issued the following letter to its stockholders from its Founder and Executive Chairman, Milton "Todd" Ault, III.

Dear Stockholders:

As Chairman of Hyperscale Data, I want to reiterate and expand on the financial information we previously released, all of which reflects the Company's estimated financial position as of October 31, 2025. Given the recent pullback in Bitcoin and the broader correction across AI-related equities, which we do not expect to last long-term, it is important to emphasize where we stand today.

After eight years of leading this Company together, Will Horne, Henry Nisser and myself (collectively the "Executive Committee"), believe Hyperscale Data is now in the strongest position it has ever been in.

Our estimated total assets as of October 31, 2025 were approximately $330 million, or $1.02 per share, and our estimated net assets were approximately $150 million, or $0.47 per share. Additionally, the estimated value, as of October 31, 2025, of the Company's cash and Bitcoin holdings was approximately $122 million, forming a powerful foundation for long-term growth.

In my experience, it is incredibly difficult to operate as a small-cap public company in today's environment. We have fought extremely hard to finance the business, support our operations, and position the Company for long-term success. Being structured as a holding company has created a valuation gap, and I do not believe investors fully understand or appreciate the quality of the assets we own.

I also want to acknowledge something important: we write a lot of press releases because we are committed to transparency. Unfortunately, micro-cap and small-cap companies experience very high stockholder turnover, and institutional Wall Street coverage overwhelmingly favors large-cap companies. That lack of continuity makes it harder for the market to appreciate the scale and potential of what we are building.

And further in the spirit of transparency, I can admit there have been mistakes made over the last eight years. In retrospect, some decisions that seemed right at the time, I now regret, and tough lessons have been learned while building a company of this scale. Today the Company and the team are stronger, with more than 600 employees across three countries on three continents. Despite this progress, I believe stockholders still do not grasp the potential magnitude this Company possesses.

For example, there exists a great strength, durability, and value of our businesses, such as Circle 8 Crane Services, LLC ("Circle 8"), a very successful subsidiary run by independent, highly capable management. These are real assets producing real results, and we believe deeply that over the long term, these assets will drive stockholder value.

We also believe there is a clear path to profitability for the Company, on a consolidated basis, in 2026 and beyond. Bitcoin is the foundation of this strategy , which combined with our financial services assets, is expected to play an increasingly powerful role in our future growth.

Additionally, the Executive Committee meets daily to review and prioritize operational items and oversee all Company assets. We review operations, capital allocation, and performance daily to ensure every business is managed responsibly. Our subsidiaries have  independent, professional leadership, and our daily oversight ensures strategic alignment and disciplined execution. We truly believe the Company has made all the necessary investments to support continued expansion.

One of our most significant assets is our Michigan AI Data Center campus (the "Michigan Facility"), owned by Alliance Cloud Services, LLC, a wholly owned subsidiary of Sentinum, Inc. ("Sentinum"), which currently provides approximately 30 megawatts ("MW") of power capacity. The Company is advancing a staged build-out that is expected to reach 70 MW over the next 20 months through new natural gas distribution infrastructure enabling on-site generation. Ultimately, subject to reaching an agreement with the local utility provider, navigating unknown regulatory challenges and securing appropriate funding, Hyperscale Data anticipates the Michigan Facility could expand to approximately 340 MW of capacity. The Michigan Facility already houses NVIDIA servers and NVIDIA graphic processing unit clusters, making it a cornerstone of our AI and high-performance computing ("HPC") ambitions. We believe this may be one of the most valuable assets we own. The Executive Committee, along with our management team, have been intentional and disciplined in building out the Michigan Facility. While we continue mining Bitcoin and expanding our digital asset treasury, we have sought to avoid any transaction that would place unnecessary debt on the Company.

This discipline is reflected throughout the organization. Circle 8, with its non-recourse debt, is one example of how we have structured assets to protect Hyperscale Data while enabling growth.

I also want to reiterate that my family's holding company, Ault & Company, Inc., is the single largest stockholder of Hyperscale Data, holding approximately $55 million in preferred stock. And to be clear, I currently have no plan on selling any shares. Further, I plan on making additional investments in the Company, as my rights allow, in 2026 and beyond.

We recently strengthened our mining operations with thousands of new Bitmain S21+ and S21 Pro Antminers, significantly increasing long-term Bitcoin production. With the recent pullback in the price of Bitcoin, we elected to acquire additional Bitcoin at more favorable prices. Our dollar-cost-averaging strategy is working, and my intention remains unchanged, I never want to sell Bitcoin.

A Personal Reflection on Bitcoin, Strategy and My Biggest Regret

I want to address something deeply personal to me. I said earlier that we have made mistakes and I want to be very clear: The biggest mistake I have made since 2011 is selling Bitcoin.

In 2016 and 2017, when I entered Bitcoin in a meaningful way for the Company, I made enormous mistakes. By 2019, when I advocated strongly for holding Bitcoin on our balance sheet, there was significant internal debate. Throughout the years, we have been debanked repeatedly and faced operational challenges simply for mining or holding Bitcoin. These obstacles made it extremely difficult to operate.

Today, the environment has changed dramatically. The current administration's favorable position on digital assets has opened the door for companies like ours to operate more freely with Bitcoin.

I also want to address comments about Strategy, formerly known as MicroStrategy, and Michael Saylor.

Strategy and Michael Saylor have accomplished extraordinary things. Michael had the conviction in 2020 to put Bitcoin on Strategy's balance sheet. It has taken our board and our Company a long time to reach the decisions we have now firmly made. I will say this without hesitation; It is one of my greatest business regrets that after mining thousands of Bitcoin, we did not hold them. That mistake will not happen again. We plan on growing our Bitcoin holdings beyond $100 million, though our first milestone remains $100 million.

I am committed to being anchored in Bitcoin. We plan on buying Bitcoin, mining Bitcoin, and holding Bitcoin indefinitely. We applaud Michael Saylor and Strategy for their leadership and admire the work they have done for the Bitcoin ecosystem. We believe wholeheartedly that building a Bitcoin-anchored balance sheet will strengthen every part of our Company and create a durable foundation for long-term value.

To provide stockholders with additional clarity, the Company will dollar-cost average into Bitcoin from now and for as long as we possibly can.

Thank you for your continued support. I am fully committed to driving long-term value for all Hyperscale Data stockholders and ensuring that 2026 becomes a transformative year for this Company.

Sincerely,

Milton "Todd" Ault III

Founder & Executive Chairman, Hyperscale Data, Inc.

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 hyperscaledata.com or available at www.sec.gov.

About Hyperscale Data, Inc.

Through its wholly owned subsidiary Sentinum, Hyperscale Data owns and operates a data center at which it mines digital assets and offers colocation and hosting services for the emerging AI ecosystems and other industries. Hyperscale Data's other wholly owned subsidiary, Ault Capital Group, Inc. ("ACG"), is a diversified holding company pursuing growth by acquiring undervalued businesses and disruptive technologies with a global impact.

Hyperscale Data currently expects the divestiture of ACG (the "Divestiture") to occur in the second quarter of 2026. Upon the occurrence of the Divestiture, the Company would be an owner and operator of data centers to support HPC services, as well as a holder of the digital assets. Until the Divestiture occurs, the Company will continue to provide, through ACG and its wholly and majority-owned subsidiaries and strategic investments, mission-critical products that support a diverse range of industries, including an AI software platform, social gaming platform, equipment rental services, defense/aerospace, industrial, automotive, medical/biopharma and hotel operations. In addition, ACG 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 190, Las Vegas, NV 89141.

On December 23, 2024, the Company issued one million (1,000,000) shares of a newly designated Series F Exchangeable Preferred Stock (the "Series F Preferred Stock") to all common stockholders and holders of the Series C Preferred Stock on an as-converted basis. The Divestiture will occur through the voluntary exchange of the Series F Preferred Stock for shares of Class A Common Stock and Class B Common Stock of ACG (collectively, the "ACG Shares"). The Company reminds its stockholders that only those holders of the Series F Preferred Stock who agree to surrender such shares, and do not properly withdraw such surrender, in the exchange offer through which the Divestiture will occur, will be entitled to receive the ACG Shares and consequently be shareholders of ACG upon the occurrence of the Divestiture.

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 hyperscaledata.com.

 

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SOURCE Hyperscale Data Inc.