Hyperscale Data (NYSEAMERICAN:GPUS) outlined plans to expand its Michigan data center, build its financial services and blockchain operations, and transition toward adjusted EBITDA reporting beginning in 2027, according to executives during a company presentation.
Executive Chairman Milton “Todd” Ault III said the company is targeting consolidated revenue of $300 million to $350 million in 2027, compared with approximately $102 million in 2025. The company expects adjusted EBITDA of $60 million to $80 million in 2027, although management emphasized that the projections are forward-looking and subject to risks and execution.
Michigan Data Center Build-Out
Hyperscale Data has signed a master services agreement with an unnamed California neocloud provider. CEO Will Horne said the initial agreement covers 20 megawatts of critical IT load over a 10-year initial term, with two five-year extension options. If the customer uses the full initial capacity over the 20-year period, Horne said the opportunity would total approximately $1.2 billion.
Alliance Cloud Services President Jay Looney said the company is repurposing a portion of the mining facility for the customer’s deployment. The company expects to have its first 10 megawatts of critical load operational before the end of the year, followed by another 10 megawatts in the first quarter of 2027. The initial 20-megawatt conversion is targeted for completion by the end of 2027.
Management estimated that the first 20-megawatt build-out could cost $100 million to $120 million. Horne said the company is evaluating financing from multiple third-party lenders and does not expect to finance the full project solely through its at-the-market equity program.
- Management said 20 megawatts of critical load would represent about 20% of a future 340-megawatt campus.
- The company is pursuing a longer-term expansion toward 300 megawatts, including potential natural-gas generation and nuclear power capacity.
- Horne said the data center could contribute $40 million to $50 million in 2027 revenue as capacity comes online, with potential for $110 million to $120 million in 2028 revenue from expanded capacity, excluding robotics.
Ault said the company sees data-center gross margins of roughly 65%, excluding depreciation. Horne said demand for power and high-performance computing capacity remains strong, though the company’s ability to expand will depend on completing infrastructure development and securing customers.
Bitcoin Treasury and Funding Strategy
Hyperscale Data said it has used Bitcoin holdings to obtain lower-cost financing. CFO Ken Cragun said the company has borrowed against pledged Bitcoin using the Morpho protocol at a rate below 5%, while retaining exposure to potential appreciation in the cryptocurrency.
Horne said the company primarily acquires Bitcoin through mining operations and purchases funded with proceeds from its at-the-market program. He characterized Bitcoin-backed borrowing as a simpler alternative to certain traditional small-cap financings because it does not involve warrants or derivative liabilities.
Management acknowledged shareholder concerns about dilution. Ault said the company intends to seek financing that is as minimally dilutive as possible and said ATM proceeds are being used for Bitcoin purchases or data-center development. The company also disclosed that it sold 150 Bitcoin for approximately $9.6 million and redeployed the proceeds in a manner management described as non-dilutive.
Financial Services, Blockchain and Robotics
Ault described Ault Capital Group as a holding company overseeing lending, digital assets, defense technology, industrial services, hospitality and other portfolio operations. The company recently announced that Ault Lending provided a $25 million financing commitment to Alzamend Neuro, including $7.5 million upfront.
Cragun said lending operations can generate returns through convertible notes, warrants and participation agreements with other lenders. He also said a legacy investment contributed $9 million to $10 million of lender revenue during the prior quarter, while another subsidiary received an additional $16 million that the company expects to address in second-quarter disclosures.
Chief Technology Officer Joe Spaziano said the company’s decentralized exchange has entered a private mainnet testing phase. The blockchain initiative is being developed to support tokenized real-world assets and connect decentralized finance with traditional finance. Ault said blockchain operations had already generated millions of dollars in revenue during the first half of the year, estimating margins in the range of $3 million to $3.5 million.
The company is also developing a roughly 100,000-square-foot robotics center of excellence at the Michigan campus. Looney said the space is expected to include simulated environments, such as kitchens, bathrooms, convenience stores and laundry facilities, where humanoid robots can be tested and trained for customer-defined tasks.
Portfolio Operations and EBITDA Reporting
Hyperscale Data also highlighted its established operating businesses, including Circle 8 Crane Services, Gresham Worldwide, hotel operations and TurnOnGreen. Ault said the Texas-based crane company employs about 140 people, generates just under $50 million of revenue and produces roughly $10 million to $12 million of EBITDA annually. He said the company is not for sale.
Cragun said these businesses provide a more predictable base of operations compared with lending activity and Bitcoin-related operations. Horne added that management has made operational changes at several portfolio companies, including new management at Circle 8 and a change in hotel operators effective in July.
The company plans to begin providing adjusted EBITDA metrics in 2027 and update those figures quarterly, while continuing to lead financial reporting with GAAP measures and reconciliations to non-GAAP results, Cragun said.
About Hyperscale Data (NYSEAMERICAN:GPUS)
Hyperscale Data, Inc, through its subsidiaries, provides customized solutions for the military markets in North America, Europe, the Middle East, and internationally. It operates through eight segments: Energy and Infrastructure, Technology and Finance, SMC, Sentinum, GIGA, TurnOnGreen, ROI, and Ault Disruptive. The company offers lifting services; virtual markets, real world goods marketplaces, gaming, sweepstakes gaming, contest of skill, and building private spaces, as well as socialization and connectivity and real and virtual concerts.
