Recently Announced Master Services Agreement Valued at Approximately $1.2 Billion to as Much as $3.0 Billion Positions Company for Future Revenue Growth and Improving Cash Flow
LAS VEGAS, July 8, 2026 /PRNewswire/ -- Hyperscale Data, Inc. (NYSE American: GPUS), an artificial intelligence ("AI") data center company anchored by Bitcoin ("Hyperscale Data" or the "Company"), today reaffirmed its previously announced fiscal 2026 revenue guidance and announced it plans to host a stockholder conference call during the third quarter of 2026 to discuss the planned divestiture (the "Divestiture") of its wholly owned subsidiary, Ault Capital Group, Inc. ("ACG") and the Company's long-term growth strategy.
The Company continues to expect revenue for fiscal year 2026 to be in the range of $180 million to $200 million, reflecting continued execution across its AI infrastructure platform, digital asset operations and diversified operating businesses.
Since issuing its original 2026 outlook, Hyperscale Data has continued to execute on several significant strategic initiatives, including the recently announced master services agreement (the "MSA"), which has an initial term of 10 years with two five-year extension options that may be exercised by the customer (collectively, the "Maximum Term") and initially contemplates approximately 20 megawatts ("MW") of critical AI compute capacity. If exercised for the Maximum Term, the MSA is expected to generate in excess of $1.2 billion in revenue. The MSA also provides the customer with a right to an additional 32 MW of critical AI compute capacity which, if exercised within the first two years of the initial term and continues through the two five-year extension options, would be expected to result in total contract revenue in excess of $3.0 billion.
While the Company is not providing 2027 revenue guidance at this time, management believes the MSA, together with additional commercial opportunities currently under negotiation, has the potential to meaningfully expand future revenue and cash flow as projects are implemented and become operational.
Management anticipates providing longer-term financial outlook as additional commercial agreements are executed and implementation schedules become more clearly defined.
"Our confidence in the future of Hyperscale Data has continued to strengthen during the first half of 2026," said Milton "Todd" Ault III, Executive Chairman of Hyperscale Data. "We remain confident in our 2026 revenue guidance of $180 million to $200 million. More importantly, we believe the commercial agreements we have executed, and those we continue to pursue, have the potential to materially expand both our revenue base and cash flow in the future. As these opportunities move from contract execution to deployment, we believe they position Hyperscale Data for a new phase of long-term growth."
The Company also announced that it expects to host a stockholder conference call during the third quarter of 2026 to provide investors with a comprehensive update regarding the Divestiture of ACG. Management expects to discuss the strategic rationale for the separation, the anticipated transaction structure and timing, financing initiatives and ACG's strategy as a hybrid private equity and operating company that acquires, finances, builds and actively manages businesses across financial services, digital assets, industrial services, hospitality, defense technologies and other sectors.
The conference call will also provide updates on ACG's principal operating businesses and strategic investments, capital allocation priorities and long-term growth initiatives designed to create stockholder value following the Divestiture. In addition, management anticipates discussing its strategic vision for 2027 and beyond, including how Hyperscale Data's AI infrastructure platform and the Divestiture of ACG are expected to position each company to pursue distinct growth opportunities.
Additional information regarding the conference call, including the date, time, webcast information and participant dial-in details, will be announced during the third quarter of 2026.
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, Inc., 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. ACG is a hybrid private equity and operating company that acquires, finances, builds and actively manages businesses across financial services, digital assets, industrial services, hospitality, defense technologies and other sectors.
Hyperscale Data currently expects the Divestiture to occur in the second quarter of 2027. Upon the occurrence of the Divestiture, the Company would be an owner and operator of data centers to support high-performance computing 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, equipment rental services, defense/aerospace, industrial, automotive and hotel operations. In addition, ACG is actively engaged in private credit and structured finance through Ault Lending, LLC, 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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