Hyperscale Data and Gresham Worldwide reach a settlement in bankruptcy, expecting $10 million revenue increase post-emergence by October 2025.
Quiver AI Summary
Hyperscale Data, Inc. has announced a settlement with Gresham Worldwide, a defense business it controls, regarding Gresham’s Chapter 11 bankruptcy proceedings. The settlement, pending court approval, will allow Gresham Worldwide to emerge from bankruptcy as a subsidiary of Hyperscale Data by October 1, 2025. Following this emergence, the company expects to reconsolidate Gresham Worldwide's financial results, potentially adding up to $10 million in revenue for the fourth quarter of 2025. If this reconsolidation had been effective from January 1, 2025, it could have boosted annualized revenue by approximately $40 million. Consequently, Hyperscale Data has raised its revenue guidance for 2025 to between $125 million and $135 million. The company views this as a pivotal moment for Gresham Worldwide and expects it to drive substantial value moving forward.
Potential Positives
- Hyperscale Data expects Gresham Worldwide to emerge from bankruptcy as a subsidiary by October 1, 2025, which could enhance the company's operational capabilities and market position.
- The anticipated reconsolidation of Gresham Worldwide's financial results is expected to contribute up to $10 million in revenue in Q4 2025 and potentially increase annualized revenue for 2025 by approximately $40 million.
- Hyperscale Data has raised its full-year 2025 GAAP revenue guidance to a range of $125 million to $135 million, reflecting improved financial outlook and business growth.
Potential Negatives
- Hyperscale Data is associated with Gresham Worldwide's Chapter 11 bankruptcy, which may reflect negatively on its financial stability and operational efficacy.
- The company anticipates significant revenue contributions from Gresham Worldwide's emergence from bankruptcy, indicating a reliance on this subsidiary for financial performance.
- The divestiture of Ault Capital Group signals a strategic shift that may create uncertainty among investors about the company’s future direction and revenue sources.
FAQ
What is the recent development for Gresham Worldwide?
Gresham Worldwide has entered a settlement agreement to emerge from Chapter 11 bankruptcy and become a subsidiary of Hyperscale Data.
How will Gresham Worldwide's emergence affect Hyperscale Data's revenue?
Gresham Worldwide is expected to contribute up to $10 million in consolidated revenue in the fourth quarter of 2025.
What changes will occur in Hyperscale Data's revenue guidance?
The Company has raised its full-year 2025 GAAP revenue guidance to between $125 million and $135 million.
When does Hyperscale Data expect Gresham Worldwide to emerge from bankruptcy?
Gresham Worldwide is expected to emerge from bankruptcy on or before October 1, 2025, subject to court approval.
What is the significance of the Settlement Agreement for Hyperscale Data?
The Settlement Agreement is seen as a turning point that enhances operational momentum and revenue contributions for Hyperscale Data.
Disclaimer: This is an AI-generated summary of a press release distributed by GlobeNewswire. The model used to summarize this release may make mistakes. See the full release here.
$GPUS Insider Trading Activity
$GPUS insiders have traded $GPUS stock on the open market 5 times in the past 6 months. Of those trades, 4 have been purchases and 1 have been sales.
Here’s a breakdown of recent trading of $GPUS stock by insiders over the last 6 months:
- MILTON C III AULT (Executive Chairman) has made 4 purchases buying 1,100 shares for an estimated $7,083 and 0 sales.
- WILLIAM B. HORNE (Chief Executive Officer) sold 2 shares for an estimated $10
To track insider transactions, check out Quiver Quantitative's insider trading dashboard.
Full Release
LAS VEGAS, June 09, 2025 (GLOBE NEWSWIRE) --
Hyperscale Data, Inc.
(NYSE American: GPUS), a diversified holding company (“
Hyperscale Data
” or the “
Company
”), today announced that the Company and Gresham Worldwide, Inc. (“
Gresham Worldwide
”), currently an affiliated defense business in which the Company holds a majority economic interest, have entered into a comprehensive settlement agreement (the “
Settlement Agreement
”) with Gresham Worldwide’s senior secured noteholders in its Chapter 11 bankruptcy proceedings. While the Settlement Agreement is subject to court approval, Gresham Worldwide is expected to emerge from bankruptcy as a subsidiary of the Company on or before October 1, 2025.
Upon Gresham Worldwide’s emergence from bankruptcy, Hyperscale Data expects to reconsolidate Gresham Worldwide’s financial results into its financial statements and anticipates that Gresham Worldwide will contribute up to an additional $10 million in consolidated revenue in the fourth quarter of 2025. If the reconsolidation of Gresham Worldwide had occurred on January 1, 2025, on a pro forma basis, a non-GAAP financial measure, this reconsolidation would have been expected to increase the Company’s annualized revenue for 2025 by approximately $40 million.
In connection with the anticipated reconsolidation, Hyperscale Data has raised its full-year 2025 GAAP basis revenue guidance to a range of $125 million to $135 million. The table below presents pro forma figures, which are not necessarily consistent with GAAP, that show the expected revenue run rate including an annualized contribution from Gresham Worldwide:
Revenue Guidance | Low End | High End | ||
Previously issued guidance | $ | 115,000,000 | $ | 125,000,000 |
Pro forma annualized contribution from Gresham Worldwide | 40,000,000 | 40,000,000 | ||
Pro forma total revenue | $ | 155,000,000 | $ | 165,000,000 |
“The settlement marks a turning point for Gresham Worldwide and reflects the hard work and collaboration of all parties involved,” said Milton “Todd” Ault III, Executive Chairman of Hyperscale Data. “We expect Gresham Worldwide’s emergence from bankruptcy to create substantial value for Hyperscale Data through meaningful revenue contribution and operational momentum as we move forward. We look forward to supporting Gresham Worldwide’s long-term growth and success.”
For more information on Hyperscale Data and its subsidiaries, Hyperscale Data recommends that stockholders, investors and any other interested parties read Hyperscale Data’s public filings and press releases available under the Investor Relations section at
hyperscaledata.com
or available at
www.sec.gov.
About Hyperscale Data, Inc.
Through its wholly owned subsidiary Sentinum, Inc., Hyperscale Data owns and operates a data center at which it mines digital assets and offers colocation and hosting services for the emerging artificial intelligence (“
AI
”) ecosystems and other industries. Hyperscale Data’s other wholly owned subsidiary, Ault Capital Group, Inc. (“
ACG
”), is a diversified holding company pursuing growth by acquiring undervalued businesses and disruptive technologies with a global impact.
Hyperscale Data expects to divest itself of ACG on or about December 31, 2025 (the “
Divestiture
”). Upon the occurrence of the Divestiture, the Company would solely be an owner and operator of data centers to support high-performance computing services, though it may at that time continue to mine Bitcoin. Until the Divestiture occurs, the Company will continue to provide, through ACG and its wholly and majority-owned subsidiaries and strategic investments, mission-critical products that support a diverse range of industries, including an AI software platform, social gaming platform, equipment rental services, defense/aerospace, industrial, automotive, medical/biopharma and hotel operations. In addition, ACG is actively engaged in private credit and structured finance through a licensed lending subsidiary. Hyperscale Data’s headquarters are located at 11411 Southern Highlands Parkway, Suite 190, Las Vegas, NV 89141.
On December 23, 2024, the Company issued one million (1,000,000) shares of a newly designated Series F Exchangeable Preferred Stock (the “
Series F Preferred Stock
”) to all common stockholders and holders of the Series C Convertible Preferred Stock on an as-converted basis. The Divestiture will occur through the voluntary exchange of the Series F Preferred Stock for shares of Class A Common Stock and Class B Common Stock of ACG (collectively, the “
ACG Shares
”). The Company reminds its stockholders that only those holders of the Series F Preferred Stock who agree to surrender such shares, and do not properly withdraw such surrender, in the exchange offer through which the Divestiture will occur, will be entitled to receive the ACG Shares and consequently be stockholders of ACG upon the occurrence of the Divestiture.
Forward-Looking Statements
This press release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements generally include statements that are predictive in nature and depend upon or refer to future events or conditions, and include words such as “believes,” “plans,” “anticipates,” “projects,” “estimates,” “expects,” “intends,” “strategy,” “future,” “opportunity,” “may,” “will,” “should,” “could,” “potential,” or similar expressions. Statements that are not historical facts are forward-looking statements. Forward-looking statements are based on current beliefs and assumptions that are subject to risks and uncertainties.
Forward-looking statements speak only as of the date they are made, and the Company undertakes no obligation to update any of them publicly in light of new information or future events. Actual results could differ materially from those contained in any forward-looking statement as a result of various factors. More information, including potential risk factors, that could affect the Company’s business and financial results are included in the Company’s filings with the U.S. Securities and Exchange Commission, including, but not limited to, the Company’s Forms 10-K, 10-Q and 8-K. All filings are available at
www.sec.gov
and on the Company’s website at
hyperscaledata.com
.
Hyperscale Data Investor Contact:
IR@hyperscaledata.com
or 1-888-753-2235
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