Ault Alliance, Inc. (NYSE American: AULT), a diversified holding company, has announced significant developments 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 a cumulative total of 2,894 Bitcoin since the start of its operations.
The company is actively seeking to expand its data center infrastructure, exploring additional power sources in Montana and planning to upgrade its Michigan facility to a hyperscale data center.
CEO Will Horne expressed the company’s dedication to scaling the Michigan center, with plans to lease all 30 megawatts of capacity and potentially expanding 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 issue special dividends of stock in non-AI data center subsidiaries to its stockholders. The spin-off aims to streamline operations and concentrate on the growth of AI digital infrastructure in Michigan and Montana.
Executive Chairman Milton “Todd” Ault III will focus on managing the subsidiaries to be spun out, leaving the leadership of Hyperscale Data to Will Horne and Jay Looney. The company also plans to provide quarterly updates on its Bitcoin mining results and anticipates that the AI-driven data centers will generate greater long-term revenues 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 are not yet determined and will require regulatory approvals and compliance with corporate governance requirements.
InvestingPro Insights
Ault Alliance, Inc. (NYSE American: AULT) continues to make headlines with its strategic initiatives in the data center space and its foray into Bitcoin mining. With a focus 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 highlight that Ault Alliance operates with a significant debt burden and may have trouble making interest payments on its debt. This is particularly relevant as the company plans to expand its data center infrastructure, which could potentially increase its financial leverage. Furthermore, the stock is currently trading at a low Price / Book multiple, suggesting that it may be undervalued relative to its book value.
As of the latest data, Ault Alliance has a market capitalization of $8.01 million. Despite the challenges, the company has shown a remarkable revenue growth of 51.58% over the last twelve months as of Q1 2024. This growth is further emphasized by a quarterly revenue growth of 55.24% in Q1 2024, reflecting the company’s aggressive expansion efforts in the data center sector.
The stock price, however, has taken 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 the InvestingPro Tip that the stock generally trades with high price volatility. Additionally, the stock is trading near its 52-week low, which could indicate a potential buying opportunity for investors looking for undervalued stocks.
Investors interested in a deeper analysis can find additional InvestingPro Tips on the company’s financial health and stock performance by visiting InvestingPro’s dedicated page for Ault Alliance at https://www.investing.com/pro/AULT. With 20 tips listed, there is a wealth of information available to help make informed investment decisions.
Remember, the insights provided by InvestingPro are designed to give a real-time snapshot of the company’s financial situation and market performance, offering valuable context to the recent announcements made by Ault Alliance.
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