This segment of the artificial intelligence market is growing rapidly as enterprises expand their capabilities.*Stock prices used were the afternoon prices of May 27, 2025. The video was published on May 29, 2025. ...

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]

Company Overview - Advanced Micro Devices, Inc. (NASDAQ: AMD) operates in the semiconductors industry and has recently expanded into the data center industry [1] - The company's primary segments include Data Center, Client, Gaming, and Embedded [1] - Approximately 34% of revenues are generated from the U.S., with the remainder coming from international markets [1] Analyst Insights - The article reflects the author's personal opinions and analysis regarding AMD's stock performance and market position [2] - The author holds a beneficial long position in AMD shares, indicating a positive outlook on the company's future [2]

Group 1 - The core viewpoint emphasizes the dual focus on "livelihood infrastructure" and "digital infrastructure" by Huaxia Bank Shenyang Branch to support urban transportation and green economic transformation in Shenyang [1][5] Group 2 - Livelihood infrastructure is crucial for alleviating traffic pressure and enhancing urban capabilities, with the Shenyang subway project being a key initiative [2] - Huaxia Bank Shenyang Branch has introduced an innovative "commercial bank + investment bank" service model to provide comprehensive financial support for the Shenyang subway project, addressing the challenges of large investment and long return periods [2] - The bank offers short-term funding through working capital loans and optimizes funding costs and term matching using financial tools like leasing and asset revitalization [2] Group 3 - The focus on digital infrastructure includes support for emerging green industries, exemplified by the green data center project of Shenyang New Calculation Real Estate Co., Ltd [3] - The project adheres to secondary energy efficiency standards and is vital for Shenyang's digital economy and low-carbon development [3] - Huaxia Bank Shenyang Branch has provided over 200 million yuan in project operation loans to support the optimization of the company's financial structure and resource allocation for energy-saving technology upgrades [3] - As of April, the bank's green loan balance increased by 1.059 billion yuan, with a growth rate of 39.84% since the beginning of the year [3] Group 4 - The bank aims to continue leveraging "livelihood temperature" and "digital speed" as dual engines to assist Shenyang in achieving modernization, ecological sustainability, and internationalization [5] - The initiative is part of a broader effort to promote comprehensive urban transformation and development in the context of Northeast revitalization [5]

REIT Performance Overview - The REIT sector experienced a significant decline in April 2025, with an average total return of -6.45%, underperforming the broader market indices such as the Dow Jones Industrial Average (-3.1%), S&P 500 (-0.7%), and NASDAQ (+0.9%) [1] - Year-to-date, the average total return for REITs stands at -9.10%, which is worse than the -7.65% return for the same period in 2024 [12] Performance by Market Capitalization - Microcap REITs underperformed larger peers for the sixth consecutive month, with returns of -8.87% [3] - Large-cap REITs (-2.93%) outperformed mid-caps (-5.45%) and small caps (-8.69%) in April, with large-cap REITs outperforming small caps by 1081 basis points in the first four months of 2025 [3] Property Type Performance - Only 11.11% of REIT property types averaged a positive total return in April, with a 20.17% spread between the best (Data Centers +7.28%) and worst-performing property types (Timber -12.90%) [5][6] - Year-to-date, Office REITs (-24.06%) and Hotel REITs (-22.90%) significantly underperformed, while Health Care (+7.23%), Infrastructure (+6.88%), and Casinos (+6.00%) were the only property types with positive returns [7] Price/FFO Multiples - The average P/FFO for the REIT sector decreased from 13.9x to 13.4x in April, with 83.3% of property types experiencing multiple contraction [8] - Data Centers (26.9x), Multifamily (24.6x), and Infrastructure (18.7x) currently trade at the highest average multiples among REIT property types, while Hotels (5.9x) and Offices (8.2x) have the lowest [9] Individual REIT Performance - Digital Realty Trust (DLR) achieved a strong gain of +12.04% in April, despite a year-to-date return of -8.72% [11] - Wheeler REIT (WHLR) was the worst-performing REIT in April, with a staggering decline of -63.61% for the month and -98.29% year-to-date [11] Dividend Yield Insights - The high dividend yields of the REIT sector are a primary reason for investment, with many REITs trading below their NAV, resulting in attractive yields [15]

Group 1: Prologis Overview - Prologis is the largest REIT in the world with a market cap exceeding $100 billion and over $200 billion in assets under management, owning interests in 5,900 buildings with 1.3 billion square feet of space across 20 countries [1] - Prologis plays a crucial role in supporting global trade and e-commerce through its warehouse properties [1] Group 2: Competitors and Growth Potential - Equinix, with a market cap approaching $85 billion, is the leading data center REIT, operating 270 data centers in 35 countries, and is positioned for significant growth due to increasing demand for data center capacity [4][5] - Realty Income, the seventh largest global REIT with $59 billion in assets, owns over 15,600 properties and has diversified its portfolio across various sectors, including retail, industrial, and gaming [7][8] - Realty Income has a total addressable market opportunity of $14 trillion, having expanded into multiple growth markets, including U.S. industrial, European markets, U.S. casino properties, and U.S. data centers [10] Group 3: Strategic Initiatives - Equinix is expanding its global data center portfolio with 56 major projects underway in 24 countries, indicating strong demand for data centers [6] - Realty Income has been actively acquiring other net lease REITs and investing billions annually to grow its portfolio, including a $3.9 billion investment in property acquisitions last year and a $9.3 billion acquisition of Spirit Realty [9] - Realty Income is launching a private capital investment fund platform to tap into the $18.8 trillion U.S. private real estate market, enhancing its growth potential [11] Group 4: Future Outlook - Prologis has significant growth potential but faces competition from Equinix and Realty Income, which could surpass it in market size within the next decade [12][13]

Financial Data and Key Metrics Changes - Total revenue for Q1 2025 was $25.1 million, a 17% decrease year over year and slightly below the $26.1 million reported in Q4 2024 [19] - Bitcoin mining revenue was $7.8 million, down 64% year over year and 26% sequentially, primarily due to the April 2024 halving event and increased network difficulty [19][20] - Cloud services revenue increased 84% year over year and 14% sequentially to $14.8 million, supported by new contracts [19][20] - Gross profit was $12.3 million, representing a total gross margin of 49%, compared to 47% in the same quarter last year [21] - Adjusted EBITDA was negative $44.5 million, compared to a positive $58.5 million in Q1 2024, primarily due to a $49.2 million mark-to-market loss on digital asset holdings [24] Business Line Data and Key Metrics Changes - Mining segment revenue decreased 64% year over year, with production declining 80% to 83 bitcoins for the quarter [5][6] - Cloud services gross margin expanded to 59% from 52% in the previous quarter, reflecting improved utilization and scale [21] - Colocation services gross margin improved modestly to 67% [22] Market Data and Key Metrics Changes - Active Hash rate stood at approximately 1.5 exahash, with fleet efficiency at approximately 24.5 joules per terahash [7] - The market value of digital asset positions appreciated on a mark-to-market basis, with Bitcoin prices increasing by 25% and Ethereum by 40% since the quarter end [25] Company Strategy and Development Direction - The company is focusing on investing in data center build-out and cloud services, with a strategy to secure multiyear contracts with creditworthy counterparties [8][12] - The company is pursuing nondilutive financing structures to support the expansion of its HPC platform and has initiated the process for commercial mortgage financing in the US [27][29] - The company is actively evaluating over 500 megawatts of potential capacity across Canada and the US, focusing on retrofitting existing sites [52][53] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges in the mining segment due to the halving event and increased competition but expressed confidence in the growth of cloud services [6][8] - The management is optimistic about securing large contracts with annualized revenue potential above $100 million, reflecting the strength of the platform built through disciplined investment [12] - Management emphasized the importance of maintaining a strong liquidity position to build trust with customers and support growth initiatives [29][30] Other Important Information - The company held $57.6 million in cash and cash equivalents and $3.7 million in restricted cash as of March 31 [25] - The company remains debt-free and spent approximately $65 million on capital expenditures during the quarter, primarily on GPUs and data center infrastructure [26] Q&A Session Summary Question: Update on white fiber rebranding and platform initiatives - The rebranding has been well received, with positive feedback on the new website and upcoming first-to-market technology announcements expected soon [33][34][35] Question: Demand from hyperscalers and enterprise users - Strong demand is observed from both hyperscalers and medium-sized NeoClouds, with updates expected in the coming months [38][40] Question: Delay in customer contract start date - The delay was due to internal product development schedule changes, but the company has options to utilize GPUs for other contracts if necessary [43][44][47] Question: Expansion in the US versus Canada - The company is evaluating over 500 megawatts of potential capacity in both regions, focusing on retrofitting existing sites for efficiency [51][52][53] Question: Balancing equity issuance and liquidating investments - The company maintains flexibility with its ATM program while balancing equity issuance with selling digital assets to fund growth responsibly [58][62] Question: Gross margin profile and GPU procurement strategy - The company aims to increase margins through long-term contracts and strategic procurement aligned with customer demand [70][78]

Financial Data and Key Metrics Changes - Total revenue for Q1 2025 was $25.1 million, a 17% decrease year over year and slightly below the $26.1 million reported in Q4 2024 [19] - Bitcoin mining revenue was $7.8 million, down 64% year over year and 26% sequentially, reflecting the impact of the April 2024 halving event and increased network difficulty [20] - Cloud services revenue increased 84% year over year and 14% sequentially to $14.8 million, supported by new contracts [20] - Gross profit was $12.3 million, representing a total gross margin of 49%, compared to 47% in the same quarter last year [21] - Adjusted EBITDA was negative $44.5 million, primarily due to a $49.2 million mark to market loss on digital asset holdings [23] - GAAP net loss per share was $0.32, compared to earnings of $0.43 per share in Q1 2024 [24] Business Line Data and Key Metrics Changes - Mining segment revenue decreased 64% year over year and 26% sequentially, with production declining 80% year over year to 83 bitcoins [5][20] - Cloud services gross margin expanded to 59% from 52% in the previous quarter, reflecting improved utilization and scale [21] - Colocation services gross margin improved modestly to 67% [21] Market Data and Key Metrics Changes - Active Hash rate stood at approximately 1.5 exahash, with fleet efficiency at approximately 24.5 joules per terahash [6] - The market value of digital asset positions appreciated on a mark to market basis, with Bitcoin and Ethereum prices increasing by 25% and 40% respectively since the quarter end [24] Company Strategy and Development Direction - The company is focused on investing in data center build-out and cloud services, with a strategy to secure multiyear contracts with creditworthy counterparties [11][12] - The company aims to pursue nondilutive financing structures to support the expansion of its HPC platform [26] - The acquisition of a 95-acre property in North Carolina is intended for data center development, with a robust pipeline of over 500 megawatts of potential capacity under evaluation [15][16] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges in the mining segment due to market conditions but expressed confidence in the growth of cloud services and colocation segments [5][19] - The company remains optimistic about securing large contracts with annualized revenue potential above $100 million [11] - Management emphasized the importance of maintaining a strong liquidity position to build trust with customers and execute growth strategies [28] Other Important Information - The company raised approximately $10 million through its ATM program during the first quarter and an additional $48 million subsequent to the quarter end [27] - The company sold approximately $32 million worth of Bitcoin holdings during the quarter to help fund growth [28] Q&A Session Summary Question: Update on white fiber rebranding and platform initiatives - The rebrand has been well received, with positive feedback on the new website and upcoming first-to-market technology announcements expected soon [32][33] Question: Demand from hyperscalers and enterprise users - Strong demand is observed from hyperscalers and medium-sized NeoClouds for capacity, with updates expected in the coming months [40] Question: Reason for customer contract start date shift - The shift in start date was due to internal product development schedule changes, and the company is prepared to utilize the GPUs for other contracts if necessary [44][47] Question: Expansion in the US versus Canada - The company is evaluating over 500 megawatts of potential capacity across both Canada and the US, focusing on retrofitting existing sites for efficiency [52][54] Question: Balancing equity issuance and liquidating investments - The company maintains flexibility with its ATM program while balancing equity issuance with selling digital assets to fund growth responsibly [60][62] Question: Gross margin profile changes and GPU procurement strategy - The company aims to increase margins by spreading operating lease costs over a larger revenue base and continues to minimize speculative procurement risks [71][78]

Financial Data and Key Metrics Changes - The first quarter revenue was $200 million, primarily from management fees related to the InVentus ESG fund, aligning with expectations and consistent with prior communications that revenue growth would be weighted towards the second half of the year [35][36] - General and administrative expenses were approximately $20 million, with significant components including non-cash equity-based compensation and professional service fees [36][37] - A non-cash goodwill adjustment of $233 million was recorded due to a decrease in the company's share price and market capitalization [38] - Adjusted EBITDA for the quarter was a loss of $21.8 million, indicating a significant operational loss but reflecting the anticipated revenue growth in the future [38][39] Business Line Data and Key Metrics Changes - Excelsius is positioned to capitalize on the growing demand for two-phase direct-to-chip liquid cooling technology, with significant market opportunities identified [35][36] - The liquid cooling market is projected to grow from $1.3 billion to $5 billion by 2028, driven by advancements in AI and chip technology [14][15][34] Market Data and Key Metrics Changes - Worldwide data center spending was approximately $450 billion in 2024, expected to exceed $1 trillion by 2029, creating a favorable environment for Excelsius [10] - The current liquid cooling market is estimated at $1.3 billion, growing at an annual rate of about 30% [14][15] Company Strategy and Development Direction - The company aims to build enterprises with a minimum of $1 billion in enterprise value, focusing on Excelsius as a key growth driver [7] - Excelsius is leveraging partnerships with hyperscalers, OEMs, and global resellers to enhance market reach and capitalize on the growing demand for liquid cooling solutions [20][27] - The company is focused on developing a robust supply chain and manufacturing capacity to meet anticipated market needs, ensuring scalability and reliability [31][76] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence that 2025 will be an inflection point for revenue growth, driven by increasing demand for liquid cooling solutions [34][35] - The management highlighted a significant uptick in lead generation and engagement with potential customers since the release of NVIDIA's roadmap, indicating a shift in market dynamics [66][69] Other Important Information - The company has seen a 200% increase in its strategic partner network since the beginning of 2025, indicating strong market interest and engagement [27] - The average proposal size has increased significantly, reflecting a shift towards larger scale production opportunities [28] Q&A Session Summary Question: What drove the white label agreement with the OEM? - The relationship was driven by overall market demand, not solely by hyperscaler engagement, allowing for a broader customer base [44][46] Question: Will the potential inflection point be served largely through the white label agreement? - Management indicated that while some volume is expected from the agreement, there is a much broader pool of customers engaged [51][52] Question: Can you comment on the pros and cons of flow versus pool-based cooling? - Flow-based cooling offers more reliability and headroom compared to pool boiling, which can lead to operational issues [57][59] Question: How is the company ensuring it can scale manufacturing to meet demand? - The company has established partnerships with contract manufacturers and has a strong internal team to support large volume orders [74][76]

Financial Data and Key Metrics Changes - The first quarter revenue was $200 million, primarily from management fees related to the InVentus ESG fund, aligning with expectations and previous communications about revenue growth being weighted towards the second half of the year [38] - General and administrative expenses were approximately $20 million, with significant components including non-cash equity-based compensation and professional service fees [39] - A non-cash goodwill adjustment of $233 million was recorded due to a decrease in the company's share price and market capitalization [40] - EBITDA for the quarter was a loss of approximately $248 million, with adjusted EBITDA reflecting a loss of $21.8 million [41] Business Line Data and Key Metrics Changes - Excelsius is positioned at the forefront of the two-phase direct-to-chip liquid cooling market, which is expected to grow significantly due to increasing data center budgets driven by AI and evolving chip technology [10][15] - The current liquid cooling market is estimated at $1.3 billion, growing at an annual rate of approximately 30%, projected to reach $5 billion by 2028 [14][15] Market Data and Key Metrics Changes - Worldwide data center spending was approximately $450 billion in 2024, expected to exceed $1 trillion by 2029, creating a favorable environment for critical infrastructure providers like Excelsius [10] - The overwhelming majority of data centers still use inefficient air-cooled solutions, with single-phase water cooling technologies representing only a small percentage of installations [10] Company Strategy and Development Direction - The company aims to build enterprises that can achieve a minimum of $1 billion in enterprise value, with Excelsius being a key focus due to its market potential [6] - Excelsius is developing relationships with hyperscalers, multinational OEMs, global resellers, and AI as a service providers to drive growth [21][29] - The company is focused on enhancing its manufacturing capacity and partnerships with global contract manufacturers to meet anticipated market demands [32][33] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence that 2025 will represent an inflection point for revenue growth at Excelsius, driven by significant demand from large global players [37] - The company is optimistic about the future, citing a substantial increase in lead generation and engagement with potential customers since February [70][72] Other Important Information - The company has seen a notable increase in its strategic partner network, growing by nearly 200% since the start of 2025, indicating strong market interest [29] - The average proposal size has increased significantly, reflecting a shift towards full-scale production opportunities [30] Q&A Session Summary Question: What drove the white label agreement with the OEM? - The relationship was driven by overall market demand, not solely by hyperscaler engagement [47][49] Question: Will the potential inflection point be served largely through the white label agreement? - The company expects some volume from those agreements but emphasizes a broader pool of engaged customers [54][56] Question: Can you comment on the pros and cons of flow versus pool-based cooling? - Flow-based cooling offers more reliability and excess fluid availability compared to pool boiling, which can lead to operational issues [61][63] Question: Will NVIDIA mitigate hotspots in the next generation architecture? - The response was cautious due to non-disclosure agreements [65] Question: Can you discuss the increase in lead generation and fulfillment capabilities? - There has been a significant spike in activity since late February, with a paradigm shift in conversations towards deployment of two-phase cooling solutions [70][72]