Core Viewpoint - Hyperscale Data, Inc. is strategically divesting non-core investments to focus on its data center business, particularly in developing its Michigan facility to support high-performance computing and AI applications [1][2][3]. Group 1: Financial Transactions - The company sold its minority equity interest in a privately held pharmaceutical company for gross proceeds of $4.65 million, having initially invested $1.5 million in the equity position [1]. - This transaction aligns with the company's strategy to concentrate capital and resources on its primary asset, a 617,000 square foot data center in Michigan [2]. Group 2: Data Center Development - The Michigan data center is being developed to support high-performance computing workloads, including AI applications [2]. - The company plans to expand the facility's power capacity from approximately 30 megawatts (MW) to 300 MW, with an additional 40 MW from a local natural gas utility, bringing the total expected capacity to approximately 340 MW [3]. Group 3: Future Plans - The company expects to divest its subsidiary Ault Capital Group, Inc. by December 31, 2025, focusing solely on data center operations and potentially continuing Bitcoin mining [7]. - The divestiture will occur through the exchange of Series F Preferred Stock for shares of Class A and Class B Common Stock of ACG, allowing stockholders to become shareholders of ACG upon completion [9].

Core Viewpoint - Hyperscale Data, Inc. has successfully paid 35 consecutive monthly cash dividends on its Series D Preferred Stock, reflecting its commitment to operational performance and shareholder value as it transitions into a pureplay AI data center platform [1][2]. Company Overview - Hyperscale Data operates through its subsidiary Sentinum, Inc., which manages a data center for mining digital assets and providing colocation and hosting services for AI ecosystems and other industries [3]. - The company also has another subsidiary, Ault Capital Group, Inc. (ACG), focused on acquiring undervalued businesses and disruptive technologies [3]. Future Plans - Hyperscale Data plans to divest ACG by December 31, 2025, after which it will focus solely on operating data centers for high-performance computing services, while potentially continuing Bitcoin mining [4]. - The divestiture will involve an exchange of Series F Preferred Stock for shares of ACG, allowing stockholders to become shareholders of ACG upon completion [5].

Core Insights - The European data center GPUs market is expected to grow from $10.6 billion in 2024 to $82.2 billion by 2034, with a compound annual growth rate (CAGR) of 22.75% during the forecast period [1][7]. Market Drivers - The increasing demand for high-performance computing to support AI, deep learning, and big data analytics is a primary driver of the GPU market's growth in Europe [2][4]. - The rapid expansion of hyperscale data centers and strategic partnerships between GPU manufacturers and cloud providers are enhancing supply chain resilience and operational scalability [3]. - The rise of AI applications and the need for effective processing resources are propelling the adoption of GPUs in data centers [4][5]. Market Trends - There is a growing integration of AI and machine learning across various industries, leading to a surge in demand for GPU acceleration [9]. - The focus on green and energy-efficient data center operations is driving the development of more power-efficient GPU technologies [5][9]. - Continuous innovation in GPU architecture and performance is essential to meet the increasing data-intensive workloads [9]. Market Challenges - High operating expenses and complex system integration pose challenges to the market [6]. - Supply chain disruptions in the semiconductor industry are impacting GPU availability [9]. - The elevated power consumption and cooling requirements of GPU systems create additional operational hurdles [9].

Core Viewpoint - Hyperscale Data, Inc. is launching an enterprise-focused XRP lending platform through its subsidiary Ault Capital Group, Inc. in Q3 2025, marking its entry into decentralized finance (DeFi) [1][4] Group 1: Platform Details - The lending platform will be available exclusively to public companies listed on NYSE, NYSE American, and NASDAQ, allowing them to borrow fixed amounts of XRP under negotiated terms [2] - Loans will be secured by the applicant's assets and may be convertible into registered shares of common stock [2] - ACG plans to hedge market exposure by utilizing XRP futures contracts on the Chicago Mercantile Exchange, enhancing risk management in cryptocurrency lending [3] Group 2: Strategic Initiatives - The platform aims to provide a secure, compliant, and institutional-grade solution for blockchain-based lending, part of ACG's broader initiative to tokenize real-world assets and offer alternative financing solutions [4] - Additional crypto-financial instruments are expected to be announced in the coming months, indicating ongoing innovation in the sector [4] Group 3: Company Background - Hyperscale Data operates a data center through its subsidiary Sentinum, focusing on mining digital assets and supporting AI ecosystems [7] - The company plans to divest ACG by December 31, 2025, transitioning to solely owning and operating data centers for high-performance computing services [8]

Core Viewpoint - Hyperscale Data, Inc. plans to purchase up to $10 million in XRP to enhance its financial services division through its subsidiary Ault Capital Group, Inc. [1][2] Group 1: Acquisition of XRP - ACG intends to acquire XRP, which will be classified as a crypto asset on the Company's balance sheet at fair value [1] - The acquisition is part of a broader strategy to expand into financial services, including cryptocurrency-based products and tokenization of real-world assets [2][3] - The Company believes that acquiring XRP will enhance liquidity and provide infrastructure support for blockchain-enabled financial products [3] Group 2: Financial Services Expansion - ACG has been successful in the lending business for the past four years and is now looking to broaden its services [2] - The Company aims to leverage XRP for cross-border settlements, real-time payment systems, and decentralized financial applications [3] - This strategic move is seen as a significant step towards integrating modern digital asset solutions into ACG's financial services model [3] Group 3: Future Plans and Divestiture - Hyperscale Data plans to divest ACG by December 31, 2025, focusing solely on data center operations and high-performance computing services thereafter [7] - Until the divestiture, the Company will continue to provide various mission-critical products across multiple industries through ACG [7] - The divestiture will involve an exchange of Series F Preferred Stock for shares of ACG, allowing stockholders to become ACG shareholders [8]

Core Viewpoint - Hyperscale Data, Inc. will accept the $TRUMP meme coin as a payment method on Bitnile.com starting June 15, 2025, enhancing the utility of the coin in social gaming [1][3]. Group 1: Payment Method and Promotions - The $TRUMP meme coin will be used to purchase the Nile Package, which includes virtual in-game currency (Nile tokens) for social casino games on Bitnile.com [2]. - A promotional offer will provide three times the number of Tokens and Coins for purchases made with $TRUMP during the first month of acceptance [3]. - For example, a $20 package will provide 150,000 Tokens and 63 Coins instead of the usual 50,000 Tokens and 21 Coins [3]. Group 2: Market Potential and User Engagement - The company believes there is a significant market for the $TRUMP holders, with over 750,000 wallets currently holding the coin, indicating potential engagement in social gaming [3]. - The promotion aims to enhance user experience by providing more opportunities to win cryptocurrency and prizes [4]. Group 3: Future Developments - BitNile.com is evaluating additional cryptocurrencies for future payment options, with announcements expected in the coming months [4].

Core Viewpoint - Hyperscale Data, Inc. reported strong financial performance for Q1 2025, with a revenue of $25 million and reaffirmed its annual revenue guidance of $115 to $125 million, driven by growth in AI data centers, equipment rental, and financial services [1][2][4] Financial Performance - The company recorded a one-time gain of $10 million from the deconsolidation of its former subsidiary, Avalanche International, Corp., which filed for bankruptcy [1] - Revenue expectations for the second half of 2025 are bolstered by enterprise adoption of AI software products from its subsidiary askROI, Inc. [2] Business Segments - The AI-driven Michigan data center is transitioning to support high-performance computing, contributing to revenue growth [2] - The equipment rental business, Circle 8 Crane Services, LLC, is experiencing strong demand due to energy-related infrastructure projects [3] - The financial services segment is seeing increased demand for structured credit and asset-backed financing, although it faces volatility from market price changes [4] Bitcoin Mining Activities - The company is optimistic about its Bitcoin mining operations, particularly with the resumption of activities at its Montana site, anticipating additional revenue from rising Bitcoin prices [5] Strategic Plans - Hyperscale Data plans to separate non-core operations by spinning off Ault Capital Group, Inc. (ACG), expected to be completed by December 31, 2025, allowing the company to focus on data center and AI infrastructure [6][9] - The separation will enable Hyperscale Data to operate solely as a data center owner and operator, while ACG will manage non-data center and Bitcoin mining assets [9] Management Commentary - The Executive Chairman expressed confidence in the company's growth potential within the AI data center space and the strategic separation plan [7]

Financing Activities - The company issued a convertible promissory note of $1.9 million on February 5, 2025, with a conversion price of $4.00 per share and an interest rate of 15% per annum [122]. - An amended and restated convertible promissory note of $3.5 million was issued on February 2025, convertible at $2.00 per share, accruing interest at 18% per annum [123]. - On March 14, 2025, the company issued a convertible promissory note of $4.2 million, with a conversion price based on the greater of $0.40 or 75% of the VWAP [124]. - The company entered into a securities purchase agreement on March 31, 2025, to sell up to 50,000 shares of Series B Convertible Preferred Stock for a total of $50.0 million [127]. - Each share of Series B Preferred Stock has a stated value of $1,000.00 and is convertible at a maximum price of $10.00 per share, with a cumulative cash dividend of 15% per annum [128]. - The company issued a total of 52,700 shares of Series D preferred stock for the settlement of equity line of credit advances totaling $0.6 million from April 1, 2025, through May 15, 2025 [172]. - A convertible promissory note with a principal face amount of $1.7 million was issued on April 1, 2025, with an original issue discount of 10% and an interest rate of 15% per annum [173]. - The company entered into securities purchase agreements on April 15, 2025, issuing convertible promissory notes with an aggregate principal face amount of $5.0 million for gross consideration of $4.0 million [175]. - The Notes issued on April 15, 2025, have an original issue discount of 20%, amounting to $1.0 million, and will mature on September 30, 2025 [176]. - Payments of preferred dividends amounted to $1.9 million, with additional gross proceeds of $0.9 million from sales of Series G preferred stock [178]. Financial Performance - Total revenue for the three months ended March 31, 2025, was $25.02 million, a decrease of 35% from $38.37 million in the same period of 2024 [144]. - Revenue from crypto assets mining decreased by $6.25 million, or 55%, to $5.20 million due to a decline in mined crypto assets and increased mining difficulty [144][145]. - Crane operations revenue increased by $0.85 million, or 7%, to $13.77 million, driven by improved utilization of the crane fleet [146]. - Revenues from lending and trading activities dropped to approximately $0, a decrease of $9.13 million, or 100%, compared to $9.10 million in the prior year [147]. - Gross margins declined to 21% for the three months ended March 31, 2025, down from 47% in the same period of 2024 [152]. - Selling and marketing expenses decreased by $1.7 million, or 42%, to $2.33 million, primarily due to lower advertising costs [154]. - General and administrative expenses decreased by $1.2 million, or 11%, to $9.20 million, attributed to lower professional fees and salaries [155]. - Other expense, net was $4.0 million for the three months ended March 31, 2025, compared to $10.5 million in the same period of 2024 [156]. Cash Flow - Cash and cash equivalents as of March 31, 2025, were $4.2 million, a slight decrease from $4.5 million as of December 31, 2024 [165]. - Net cash used in operating activities totaled $4.0 million for the three months ended March 31, 2025, compared to $10.2 million in the same period of 2024 [166]. - Net cash used in investing activities was $1.2 million for the three months ended March 31, 2025, a decrease from $1.7 million for the same period in 2024 [167]. - Net cash provided by financing activities was $4.7 million for the three months ended March 31, 2025, down from $13.0 million in the same period of 2024 [168]. Gains and Losses - The company recognized a gain of $2.0 million from the deconsolidation of GIGA, which filed for Chapter 11 bankruptcy on August 14, 2024 [133]. - A gain of $10.0 million was recognized from the deconsolidation of AVLP, which filed for liquidation under Chapter 7 on March 28, 2025 [137]. - The company recorded an impairment loss of $8.0 million related to the real estate assets of AGREE during the year ended December 31, 2024 [136]. - The company recognized a loss of $1.0 million related to the Orchid convertible promissory note and a loss of $1.3 million related to the SJC convertible promissory note issued in March 2025 [168]. Strategic Initiatives - The company aims to maximize stockholder value through various initiatives, including public offerings and sales of subsidiaries [138]. - The company has provided capital to support growth in sectors such as AI software, social gaming, and hotel operations [140]. Accounting and Reporting - There have been no material changes to critical accounting estimates previously disclosed in the 2024 Annual Report [179]. - The company reported no applicable market risk disclosures as it qualifies as a smaller reporting company [180].

Core Viewpoint - Hyperscale Data, Inc. is resuming Bitcoin mining operations at its Montana site due to a recent increase in Bitcoin prices, which the company believes is sustainable for generating positive cash flow from operations [3]. Group 1: Company Operations - Sentinum, a wholly owned subsidiary of Hyperscale Data, plans to restart Bitcoin mining operations on or around June 10, 2025, at one of its two Montana sites [1]. - The Montana site has a power capacity of up to 10 megawatts, sufficient to operate approximately 3,200 S19j Pro Antminers, with initial operations set to commence on about 2,600 Antminers [2]. - The company expects to ramp up operations to full capacity of approximately 3,200 Antminers by July 2025 [2]. Group 2: Strategic Direction - Hyperscale Data intends to divest its subsidiary Ault Capital Group, Inc. (ACG) by December 31, 2025, after which it will focus solely on data center operations and may continue Bitcoin mining [5]. - Until the divestiture, the company will provide mission-critical products across various industries, including AI, gaming, and medical sectors, through ACG and its subsidiaries [5]. Group 3: Financial Instruments - On December 23, 2024, the company issued one million shares of Series F Exchangeable Preferred Stock to common stockholders, which will be exchanged for shares of ACG upon the divestiture [6].

Core Insights - Hyperscale Data, Inc. announced the launch of Nile Coin on the Solana Blockchain on May 3, 2025, through its subsidiary BitNile.com [1][4] - The current market capitalization of Nile Coin is approximately $164.5 million, with a total supply of 500 billion coins [2] - BitNile.com has sold around 76.6 million Nile Coin from the initial minting, with a liquidity pool containing approximately 23.4 million NILE and 47 SOL [2][3] Company Overview - Hyperscale Data operates a data center that mines digital assets and provides colocation and hosting services, particularly for AI ecosystems [6] - The company plans to divest its subsidiary Ault Capital Group, Inc. by December 31, 2025, focusing solely on data center operations and high-performance computing services thereafter [7] Product and Market Strategy - The Nile Coin will be integrated into BitNile.com's social gaming platform, allowing users to use it as a payment method starting around June 1, 2025 [4] - The Nile Coin has a vesting schedule where approximately 99.8% of the total supply is secured in a smart contract, releasing about 0.46 billion NILE daily over 36 months [3]