Hyperscale Data (GPUS) Registration filing summary

Company overview and business model

• Operates through subsidiaries focused on Bitcoin mining, data center operations, and AI/hyperscale data center development, with a transition underway from mining to high-density data center services targeting enterprise, HPC, and AI workloads.

• Owns and operates facilities in Michigan and Montana, with Michigan Facility being the primary focus for future growth and expansion.

• Business model leverages economies of scale from mining to support expansion into non-mining applications, with plans to phase out mining as AI and HPC services grow.

Financial performance and metrics

• Reported $31.5M in revenue and a net loss of $12.6M for the year ended December 31, 2024, compared to $33.1M in revenue and a $2.6M net loss in 2023.

• Generated approximately 677 Bitcoin in 2024, down from 1,607 in 2023, with average daily production dropping post-hosting agreement termination and block reward halving.

• Cash generated from operations (excluding capital expenditures) was $12.7M in 2024 and $15.7M in 2023.

• Power costs ranged from $42 to $62 per MWh, with depreciation and impairment charges significantly impacting reported losses.

Use of proceeds and capital allocation

• Proceeds from the offering will not be received by the company; all shares sold will be for the account of selling stockholders.

• Significant capital expenditures planned for Michigan Facility to support transition to HPC and AI applications, with anticipated near-term increase in losses unless costs are offset by customer contracts.