Hyperscale Data Has Ceased Bitcoin Mining Operations in Michigan as It Fulfills the Requirements of the AI Data Center Master Services Agreement Expected to be Worth Approximately $1.2 Billion

Master Services Agreement Has Expansion Potential of up to Approximately $3 Billion Using Approximately 20% of the Potential 340 Megawatts of Total Eventual Power Capacity at the Michigan Data Center 

LAS VEGAS, Sept. 2, 2026 /PRNewswire/ -- Hyperscale Data, Inc. (NYSE American: GPUS), an artificial intelligence ("AI") data center company anchored by Bitcoin ("Hyperscale Data" or the "Company"), today announced that it has ceased all Bitcoin mining operations at its Michigan data center (the "Facility") and was undertaken as the Company is preparing the Facility for deployment of its customer's AI data center infrastructure pursuant to the previously announced master services agreement ("MSA").

The Company recently announced that the MSA with its California-based neocloud provider (the "Customer"), which provides for the deployment of 20 megawatts ("MW"), has an initial term of 10 years with two five-year extension options that may be exercised by the Customer (collectively, the "Maximum Term"). If exercised for the Maximum Term, the MSA is expected to generate in excess of $1.2 billion in revenue. The MSA 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, is expected to result in total contract revenue in excess of $3.0 billion.

Following the Customer's inspection of the Facility and continued progress of the Company's enhancement of the Facility, including engineering design and equipment procurement, Hyperscale Data and the Customer agreed that the Company immediately terminate the Company's Bitcoin mining operations at the Facility to further the Company's preparation of the Facility for its transition to AI data center operations.  Effective as of September 1, 2026, all Bitcoin miners have been turned off. 

Importantly, the Company believes that the existing MSA represents only a portion of the long-term potential of the Facility. Even if the Customer fully exercises its options for the additional power for the Maximum Term, the Company estimates that the associated deployment would require no more than approximately 20% of the approximately 340 MW of power capacity ultimately anticipated to be available at the Facility. Accordingly, the Company would retain the ability to enable the development of approximately 80% of the expected power capacity available for additional customers and future AI data center expansion, subject to the successful development and availability of the planned power capacity.

The Company believes that this remaining capacity represents substantial additional potential beyond the existing MSA and provides Hyperscale Data with the opportunity to continue expanding the Facility as demand for AI computing infrastructure grows.

"We are pleased with the continued progress we are making at the Facility," stated William Horne, the Company's Chief Executive Officer. "The immediate shutdown of the Bitcoin mining operations allows our team to focus the Facility's power, infrastructure and resources in preparing the Facility for its usage by our Customer. Further, as the expansion of the Facility to support AI computing infrastructure progresses, it is my belief that our stockholders will be rewarded as the Company's market capitalization, which currently trades at a significant discount to other data center companies, begins to normalize in comparison to its available contracted power capacity.  In fact, earlier this year, VanEck's head of digital asset research stated that Bitcoin mining companies, like ours, that could repurpose existing sites for AI were 'sitting on a gold mine' because they were trading at a steep discount to traditional data center companies."

The Company believes transitioning the Facility away from Bitcoin mining, which has been completed, will enable it to dedicate available electrical capacity, physical infrastructure, personnel and capital resources to support its Customer's operations and the continued expansion of the Facility to ultimately meet the demanding needs of the growing AI industry. In addition, the Company expects to recognize additional gains from its intended sale of the associated Bitcoin mining servers.

The Company cautions you that these expansion concepts remain preliminary and subject to numerous risks and uncertainties, and there can be no assurance that such expansion capacity will ultimately be available, developed, financed, approved, economically viable or otherwise initiated or continued.

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 that offers colocation and hosting services for the emerging AI ecosystems and other industries. Hyperscale Data's other wholly owned subsidiary, Ault Capital Group, Inc. ("ACG"), is a hybrid private equity firm 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 of ACG (the "Divestiture") to occur in 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.

SOURCE Hyperscale Data Inc.