Hyperscale Data Inc. (NYSE American: GPUS) shares rallied more than 157% over the past month as the artificial intelligence data center company advances negotiations on a potential billion-dollar AI infrastructure deal. The stock was trading about 47% higher intraday at press time near $0.38. The rally follows the company's June 15 announcement that its wholly owned subsidiary Alliance Cloud Services LLC is expected to enter a master services agreement in the coming weeks to provide colocation and related services for AI deployments. Hyperscale Data positions itself as an AI data center company anchored by Bitcoin, blending data infrastructure with a substantial crypto treasury, and operates Bitcoin mining infrastructure through its wholly owned subsidiary Sentinum Inc.
Alliance Cloud Services Advances Master Services Agreement Negotiations
On June 15, the company said its indirect wholly owned subsidiary, Alliance Cloud Services LLC, is expected to enter a master services agreement in the coming weeks to provide colocation and related services for AI deployments. The first 10 megawatts of capacity would be operational within 90 days, followed by an additional 10 megawatts in the subsequent 90-day window.
The 20-megawatt deployment, with renewal options of up to 20 years, is projected to generate over $1 billion in revenue over its term. An additional 32 megawatts is anticipated to come online by 2028, potentially adding another $1.5 billion. Combined, the 52 megawatts could deliver roughly $2.5 billion in revenue over two decades.
To make room for the AI workloads, Hyperscale Data said it will likely wind down Bitcoin mining operations at the Michigan campus over several months. Management framed the Michigan campus, which could eventually support over 300 megawatts of total power capacity, as a scalable AI infrastructure platform. The 20-megawatt deployment under discussion would use less than 7% of that potential capacity, leaving room for further expansion, though the company cautioned that no definitive agreements have been signed.
Hyperscale Data Discloses Bitcoin Treasury and Cash Holdings
Despite the AI focus, Hyperscale Data's balance sheet remains heavily crypto-exposed. The company disclosed on June 16 that it held 713.5884 Bitcoin, worth roughly $46.9 million as of June 14, along with approximately $40.2 million in cash and restricted cash, plus 10,000 ounces of silver. Restricted cash refers to money a company sets aside for a special purpose and cannot use for any immediate or general business operation.
The combined $87.1 million in Bitcoin, cash, and equivalents represents about 73.34% of the company's market capitalization.
FAQ
What did Hyperscale Data announce on June 15?
On June 15, Hyperscale Data announced that its indirect wholly owned subsidiary, Alliance Cloud Services LLC, is expected to enter a master services agreement in the coming weeks to provide colocation and related services for AI deployments. The first 10 megawatts of capacity would be operational within 90 days, with an additional 10 megawatts in the subsequent 90-day window.
How much Bitcoin does Hyperscale Data hold?
On June 16, Hyperscale Data disclosed that it held 713.5884 Bitcoin, worth roughly $46.9 million as of June 14, along with approximately $40.2 million in cash and restricted cash, plus 10,000 ounces of silver. The combined $87.1 million in Bitcoin, cash, and equivalents represents about 73.34% of the company's market capitalization.
Why is Hyperscale Data winding down Bitcoin mining at its Michigan campus?
Hyperscale Data said it will likely wind down Bitcoin mining operations at the Michigan campus over several months to make room for AI workloads under the anticipated master services agreement.
