Hyperscale Data, Inc. an AI data center company anchored by Bitcoin, today announced that management has established $750 million as the minimum valuation at which it presently believes a sale of the Company's Michigan AI data center campus would merit serious consideration.
ACS recently entered into the MSA with a California-based neocloud provider for the deployment of an initial 20 megawatts of critical AI compute capacity at the Michigan Campus. The MSA has an initial term of 10 years and includes two five-year extension options that may be exercised by the Customer. If the Customer exercises both extension options, the initial 20 MW deployment is expected to generate more than $1.2 billion in aggregate revenue over the maximum 20-year term.
The MSA also provides the Customer with a right to an additional 32 MW of critical AI compute capacity. If exercised within first two years and continues through both extension terms, the MSA is expected to generate more than $3.0 billion in total contract revenue from potential 52 MW deployment.
The Company believes the Michigan Campus could ultimately support more than 300 MW of total power capacity. Development beyond initial 20 MW is subject to financing, regulatory approvals, engineering, utility agreements and customer demand.
Milton "Todd" Ault III, Executive Chairman of Hyperscale Data and largest stockholder, stated, "Over more than three decades as an investor, I have seen markets fail to reflect fundamental value that is already present in a business or asset. I believe the Michigan Campus is such a case. The Company's current market valuation does not reflect the value of the campus, the opportunity created by our long-term customer relationship or the strategic importance of its power and infrastructure. We will not rush into a transaction simply for the sake of completing one."
William B. Horne, CEO of Hyperscale Data, said, "We want our stockholders to understand that there are publicly traded companies with assets and business models that provide meaningful comparables to our Michigan AI data center. The disparity between the value we believe is reflected by these comparable companies and the value currently being attributed to Hyperscale Data is substantial. If the best way to realize the value is through a sale, we are prepared to pursue that path. If the better alternative is to bring the data center business to the public markets as a separate company in which Hyperscale Data retains a controlling interest, we are prepared to pursue that as well."
Management presently believes $750 million represents minimum valuation at which outright sale would merit serious consideration. This threshold is not a ceiling. Management's current range does not constitute independent appraisal or fairness opinion. Successful execution of initial AI deployment, additional customer commitments and development of additional power capacity could support valuation above current range.
