Hyperscale Data reaffirms FY25 revenue view $115M-$125M

Hyperscale Data (GPUS) reported revenue of $25M for the Q1 and reaffirms its previous guidance of $115M-$125M of revenue for FY25, citing continued momentum across its artificial intelligence, or AI, data center, equipment rental and financial services operations. In the Q1 Hyperscale Data recorded a one-time gain of $10.0M from the deconsolidation of its former majority owned subsidiary, Avalanche International, Corp. after it filed for bankruptcy protection. The Company continues to see strong performance in its AI-driven Michigan data center, which is undergoing a full-scale transition to support high-performance computing infrastructure. The Company expects revenue in the second half of 2025 from askROI, the Company’s subsidiary focused on AI software, from enterprise adoption of existing products coupled with revenue from planned new product offerings. The Company also reported strength in its equipment rental business, Circle 8 Crane Services.In addition, the Company believes there could be an increase from its financial services segment, particularly its lending operations, where demand for structured credit and asset-backed financing is rising amid broad volatile market conditions. However, unrealized gains and losses from market price changes have caused, and will likely continue to cause, significant volatility in the Company’s periodic earnings in this segment. The Company is also seeing positive momentum from its Bitcoin (BTC) mining activities and is excited for the resumption of Bitcoin mining activities at the Company’s Montana site. Management believes that continued strength in Bitcoin pricing will generate additional revenue in the future. The Company is reaffirming its plan to separate non-core operations and spin off Ault Capital Group, which will hold all the Company’s non-data center and Bitcoin mining assets and operations. The strategic separation is expected to be completed on or about December 31.