Ault Alliance to transform Michigan data center into hyperscale By Investing.com
Ault Alliance, Inc. (NYSE American: AULT), a diversified holding company, announced a significant development in its data center operations through its subsidiary Sentinum, Inc. The company reported that as of July 31, 2024, Sentinum has mined a total of 552 this year, adding to the amount of 2,894 Bitcoin since the beginning of its operation.
The company is actively seeking to expand its data center infrastructure, exploring additional energy sources in Montana and planning to develop its Michigan facility into a hyperscale data center.
CEO Will Horne expressed the company's commitment to expanding the Michigan facility, with plans to lease all 30 megawatts of power and potentially expand to 300 megawatts to meet customer demand.
In a strategic move to focus on its core business, Ault Alliance announced its intention to change its name to Hyperscale Data, Inc. and issued special shares of stock in non-AI data center subsidiaries to shareholders. The spin-off aims to streamline operations and focus on growing the digital AI infrastructure in Michigan and Montana.
Executive Chairman Milton “Todd” Ault III will focus on managing the exiting subsidiaries, leaving leadership of Hyperscale Data to Will Horne and Jay Looney. The company also plans to provide quarterly updates on its Bitcoin mining results and expects that AI-driven data centers will generate more long-term revenue than Bitcoin mining.
However, Ault Alliance noted that projections are subject to various factors, including Bitcoin market volatility, mining difficulty levels, and power availability. The company stressed that the terms of any special dividend have not been determined and would require regulatory approval and compliance with corporate governance requirements.
InvestingPro Insights
Ault Alliance, Inc. (NYSE American: AULT) continues to make headlines for its strategic plans in the data center space and its foray into Bitcoin mining. Focusing on the company's financial health and stock performance, we turn to some key insights from InvestingPro that may be of interest to investors and stakeholders.
InvestingPro Tips highlights that Ault Alliance is operating under a heavy debt load and may have trouble paying interest on its debt. This is especially important as the company plans to expand its data center infrastructure, which may increase its financial strength. Furthermore, the stock is currently trading at a low Price / Book multiple, suggesting that it may be looking below its book value.
According to the latest data, Ault Alliance has a market capitalization of $8.01 million. Despite the challenges, the company has shown an impressive revenue growth of 51.58% in the last twelve months from Q1 2024. This growth is also emphasized by the quarterly revenue growth of 55.24% in Q1 2024, which shows the aggressive growth efforts of the company in the data center sector.
The stock price, however, took a significant hit, with a 1-week total return of -10.0% and a 1-month total return of -27.01%. This volatility is captured by InvestingPro Tip when the stock typically trades with high price volatility. Additionally, the stock is trading near its 52-week high, which could indicate a potential buying opportunity for investors looking for undervalued stocks.
Investors interested in in-depth analysis can find more InvestingPro Tips on a company's financial health and stock performance by visiting Ault Alliance's dedicated InvestingPro page at With 20 tips listed, there is a wealth of information available to help make informed investment decisions.
Remember, the information provided by InvestingPro is designed to provide a real-time snapshot of the company's financial position and market performance, providing valuable context to the latest announcements made by Ault Alliance.
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