The minimum price is about 23 times Hyperscale Data’s public-market value, while its upper estimate reaches nearly 40 times that value.

A data center company doesn’t think the market is valuing it enough, so it is putting one of its facilities on the market and won’t entertain anything below $750 million, it said today.

Hyperscale Data, Inc. (NYSE American: GPUS) said Sept. 14 that it would not seriously consider selling its Michigan AI data center campus for less than $750 million. Management believes the property could be worth $1.25 billion or more.

The asking range dwarfs the company’s market value. Hyperscale was worth about $32 million as of Sept. 11, when its shares traded near 19 cents. Management is assigning one asset a value roughly 23 to 40 times what investors place on the entire company.

Executive Chairman Milton “Todd” Ault III, the company’s largest stockholder, called it “an extraordinary disconnect between the public-market valuation currently being assigned to Hyperscale Data and the fundamental value represented by the Michigan Campus.” 

Ault founded Ault & Company, Hyperscale’s controlling investor. He said the campus “has the potential to reshape Hyperscale Data” and that the company would “act with discipline and conviction” instead of rushing a transaction.

The contract behind the valuation

The estimate rests largely on a master services agreement that Hyperscale subsidiary Alliance Cloud Services signed in June with an unnamed California neocloud provider. The agreement covers an initial 20 megawatts of AI compute for 10 years and includes two five-year extension options. Hyperscale says that 20 MW would generate more than $1.2 billion over 20 years if the customer exercises both options.

The customer also has rights to another 32 MW. Hyperscale says a fully exercised 52 MW deployment, including both extensions, could produce more than $3 billion in contract revenue.

Management has said the campus could eventually support more than 300 MW. Capacity beyond the initial 20 MW, however, depends on financing, permits, utility agreements and customer demand that the company has not secured. Hyperscale also said no independent appraisal or fairness opinion supports its valuation range.

A converted factory in Dowagiac

The 617,000-square-foot campus sits at 415 East Prairie Ronde Street in Dowagiac, a Cass County city of about 5,700 people in southwest Michigan. The building opened as manufacturing space in 1972. Hyperscale acquired it in May 2022 and has spent the intervening years converting the site from Bitcoin mining to high-performance computing and colocation. The company installed its first Nvidia GPU cluster in March 2025.

In June, Hyperscale acquired 48.5 adjacent acres. The purchase brought the campus to about 83 acres and more than doubled its land area.

Power plans and local opposition

Power supply is central to the expansion plan. Alliance Cloud Services has pursued behind-the-meter natural gas generation, including an arrangement for roughly 40 MW. The approach could let the company add capacity without waiting for a conventional utility interconnection.

The site also faces a proposed class action. Two residents sued in May in the U.S. District Court for the Western District of Michigan, alleging that noise from cooling fans has harmed their use of their property and reduced home values. The complaint says about 1,300 residential properties lie within one mile of the facility. The company held a public information meeting at the Dowagiac Public Library in June.

A low-priced stock and a going concern warning

The company began as Digital Power Corporation and later operated as DPW Holdings, Ault Global Holdings, BitNile Holdings and Ault Alliance before taking the Hyperscale Data name and GPUS ticker in September 2024. It now describes itself as “an AI data center company anchored by Bitcoin.” Its Ault Capital Group subsidiary holds financial-services and industrial businesses that Hyperscale plans to divest in 2027.

Hyperscale reported $78.9 million in sales for the first half of the year but also disclosed substantial doubt about its ability to continue as a going concern. The company completed a one-for-five reverse stock split in mid-August. Its shares still trade below 20 cents, compared with a 52-week high of $3.65.

Three options for the campus

Management says it is considering three paths. Hyperscale could sell the Michigan campus for at least $750 million. It could take Sentinum, the subsidiary that owns Alliance Cloud Services, public and sell a minority stake to finance expansion while retaining control. Or it could keep the campus and continue developing it.

The company has made no decision. CEO William B. Horne described the release as a message to the market: “We intend to make that disparity clear.” Hyperscale has put a nine-figure price on a converted 1970s factory in Dowagiac. Buyers and public-market investors will decide whether the contract, power plan and expansion potential support it.