Hyperscale Data Says It Is Undervalued. Its Share Count Rose 80% in Six Months.

Retail shareholders are now the audience for a kind of corporate document that used to be written for analysts. The Hyperscale Data stockholder letter published on 3 September 2026 belongs to that category. Founder and executive chairman Milton Todd Ault III wrote that he believes the market capitalisation falls far short of the value of the businesses and assets inside the company, and that he intends to buy shares in the open market once he is legally permitted to do so. The letter went out at six in the morning New York time, about fourteen hours after the stock closed at a split-adjusted record low.

The argument has a standard form. A company states the value of what it holds, states its market capitalisation, and invites the reader to notice the distance between the two. Both figures are public, which makes the comparison easy to check and difficult to dismiss. The figure it leaves out is the one that decides what a single share is worth.

What the letter counts

The letter to stockholders sets out the parts of the business Ault believes the market is ignoring. A signed master services agreement (MSA) commits a Californian neocloud provider, meaning a company that rents out artificial intelligence (AI) computing power, to take 20 megawatts at the Michigan site.

The customer holds the extension options, and taking all of them across the full twenty-year life would carry the contract past $1.2 billion, with a further 32 megawatts of optional capacity pushing the ceiling above $3 billion. Ault Capital Group (ACG) holds the rest: crane rental and industrial services, hotel and real estate, defence, and lending through Ault Lending.

Those businesses produce money. Defence generated approximately $23.8 million of revenue in the first six months of 2026, crane rental and industrial services $22.1 million, hotel and real estate $9.7 million, and Ault Lending $9.2 million.

The four segments together produced about $64.8 million in six months, which is our arithmetic from the company's figures rather than a number it published, against 2027 guidance of $300 million to $350 million in consolidated revenue.

Only part of that mix belongs to financial technology, and the letter asks readers to price all of it as one instrument.

What the market has been counting

The share register tells a different story from the asset list. Class A shares outstanding rose from 323,405,790 at the end of December 2025 to 581,452,367 at the end of June 2026, an increase of about 80% in six months. The six-month equity record inside the second-quarter filing accounts for 263,784,724 of those shares as issued for cash. The same filing carries substantial doubt about the company's ability to continue as a going concern, which is the accounting term for doubt that a business can keep running for another twelve months.

That filing also lists a preferred stock liquidation preference of $90.875 million. Preferred holders stand ahead of common stockholders on every asset the letter names, so the first $90.875 million of value belongs to someone else before a common share is worth anything.

A one-for-five reverse split took effect on 24 August 2026 and cut Class A shares from about 679,910,173 to about 135,981,983. Reverse splits change the arithmetic of a share without changing what the company owns. A Schedule 13D/A filed on the evening of 2 September reported 145,814,600 Class A shares outstanding, almost ten million more than the split had left nine days earlier.

Ault Lending's book is private credit, a category valued by assumption rather than by screen, and one where the relationship between private credit and AI has already drawn supervisory attention. The stock closed at $0.1984 on 2 September, a split-adjusted record low, down about 17% on the day the company confirmed the Michigan miners were off.

The ratio that has not moved

The company said in December 2025 that its Bitcoin (BTC) treasury, counting cash committed to further purchases, came to about 100.75% of its market capitalisation, measured against the closing price on 22 December. It said on 25 June 2026 that cash, restricted cash, Bitcoin and silver worth approximately $94.8 million on 24 June came to about 100.42% of the market capitalisation of its Class A common stock. The ratio was almost identical six months apart.

The ratio held because both sides of it were falling together. Assets left the company to fund the Michigan conversion while the share price fell, and a comparison between two shrinking numbers can stay flat indefinitely. BitcoinTreasuries.NET listed the company at roughly 215 BTC at the end of August, against about 1,006 BTC on 30 July. Ault had told stockholders in August 2025 that mined coins would stay on the balance sheet permanently and that sales to cover running costs were finished.

Where the letter is right

The MSA is signed rather than proposed, and the customer inspected the site before the miners were switched off. Defence revenue of $23.8 million in six months is operating growth. Ault has committed to buying shares with his own money, which costs him something no press release does. The planned 2027 divestiture of ACG is the company's own acknowledgement that a group holding cranes, hotels, defence contracts and an AI data centre is hard to price as one instrument.

The Michigan site is designed for up to 340 megawatts, and power is the constraint that decides whether that number ever becomes revenue. The largest AI campuses under construction now arrive with their own generation attached. Hyperscale Data is converting an existing Bitcoin mine into that kind of asset while funding the work by selling the Bitcoin it used to mine there.

The comparison between what a company owns and what the market pays for it is at its most persuasive when shareholders have lost the most, because the only figure falling is the price of the shares they already hold. Hyperscale Data has published that comparison at roughly 100% twice in nine months. It was accurate both times, and both times it described the company rather than the people who own it.

Editor's note

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