Ault & Company Invests USD 55 Million in Hyperscale Data, highlighting the discrepancies between Market Valuation and Asset Value

USD 55 Million Deployed Through Convertible Preferred Stock

Ault & Company, Inc., a private holding company controlled by Milton "Todd" Ault III, announced on September 25, 2026 that it has invested USD 55 million of capital directly into Hyperscale Data, Inc., an NYSE American listed company, through the purchase of convertible preferred stock. The figure does not include funds expended by Ault & Company or any of its affiliates in purchasing Hyperscale Data common stock in open market purchases.

Ault & Company and its affiliates currently beneficially own approximately 62% of Hyperscale Data. Further details on that ownership are contained in Schedule 13D/A Amendment No. 19, filed with the U.S. Securities and Exchange Commission on September 15, 2026.

Stated Rationale: A Disconnect Between Market Capitalization and Asset Value

Ault & Company stated it believes there is an extraordinary disconnect between Hyperscale Data's current public market valuation and the value of the assets and businesses owned by the company. The holding company laid out several assets and opportunities it believes support its long-term investment thesis.

"We have committed substantial capital to Hyperscale Data because we believe in the value of what it owns and the opportunities ahead," said Mr. Ault, who serves as Chief Executive Officer of Ault & Company and Executive Chairman of Hyperscale Data. "The Michigan campus has an executed customer agreement, significant capital invested, and the potential to expand.

Management believes that the campus could support a valuation of USD 750 million to USD 1.25 billion. Beyond Michigan, Hyperscale Data has established operating businesses and other strategic assets. As its largest stockholder, Ault & Company, together with its affiliates, is focused on supporting Hyperscale in the work needed to develop these assets and demonstrate their value over time."

Michigan AI Data Center Anchors the Investment Thesis

Central to Ault & Company's case is Hyperscale Data's Michigan AI data center. Hyperscale Data has reported that it has invested more than USD 70 million into the Michigan facility, which is owned and operated by its wholly owned subsidiary, Alliance Cloud Services, LLC, referred to as ACS. ACS has executed a master services agreement for an initial 20 megawatts of critical artificial intelligence compute capacity, and the customer holds the right to expand the deployment to a total of 52 MW.

According to Hyperscale Data, revenue from the initial 20 MW deployment is expected to exceed USD 1.2 billion if the master services agreement remains in effect for its maximum 20-year term. If the customer exercises its expansion right and the additional capacity remains contracted for the applicable maximum term, total potential contract revenue could exceed USD 3.0 billion.

The contemplated 52 MW deployment could represent less than 20% of the approximately 340 MW of total potential capacity that ACS believes can ultimately be available.

Hyperscale Data has cautioned that development of any capacity beyond the initial 20 MW covered by the master services agreement is subject to financing, regulatory approvals, engineering, utility agreements, infrastructure availability, customer demand, and other conditions.

The company stated there can be no assurance that additional capacity will be developed, financed, contracted, or placed into service.

Management's Valuation Range for the Michigan Campus

Management of Hyperscale Data has stated that it presently believes the Michigan campus could support a valuation of approximately USD 750 million to USD 1.25 billion, with USD 750 million set as the minimum valuation at which it presently believes a sale would merit serious consideration.

The company noted that this range is management's own assessment, not an independent appraisal, and does not assure that a transaction could occur at either amount.

Reported Financials and Holdings

Hyperscale Data reported approximately USD 360 million of total assets as of June 30, 2026, reflecting its Michigan investment, operating businesses and other holdings. For the quarter ended June 30, 2026, the company reported USD 34.8 million of consolidated revenue.

The company's interests span defense and aerospace, crane rental, hotels, commercial lending, blockchain technology and software, in addition to the Michigan AI data center. As of September 13, 2026, Hyperscale Data reported approximately USD 51 million of Bitcoin, cash and restricted cash.

Room for Further Investment

Ault & Company said it expects to continue evaluating additional investments in Hyperscale Data, including its right to purchase up to an additional USD 96 million of series H convertible preferred stock, subject to market conditions, applicable securities laws and other considerations. The company noted that the announcement is for informational purposes only and does not constitute an offer to buy or sell common stock or any other securities.

Ault & Company, Inc. is a private holding company founded and controlled by Milton "Todd" Ault III. It invests in public and private businesses across a variety of industries and describes its approach as seeking to create long-term value through active ownership, capital allocation and strategic development.

Powering the United States Digital Backbone: Your Edge in the Data Center Boom

Every hyperscale campus, colocation facility, and edge deployment across the United States starts with a signal long before ground is broken, a permit filed, a tender floated, a contract signed. The question is whether your team catches that signal first or reads about it months later.

Staying ahead in a market moving at the speed of cloud demand means tracking the right projects at the right time. Miss an early-stage development, and you miss the chance to position your solutions before competitors lock in relationships.

The Global Project Tracking (GPT) platform by Blackridge Research gives you real-time visibility into data center activity across the United States, so your pipeline is built on intelligence, not chance.

• Upcoming Projects

• Tender Notices

• Contract Awards

• Projects Under Construction

• Completed Projects

Book a Free Demo today and see how the Global Project Tracking (GPT) platform by Blackridge Research can sharpen your competitive edge in the data center market.