Hyperscale Data's High-Stakes Bet: Bitcoin Treasury Nears Market Cap

LAS VEGAS, NV – December 16, 2025 – In a bold and aggressive move that firmly ties its future to the world's largest cryptocurrency, AI data center company Hyperscale Data, Inc. (NYSE American: GPUS) announced today that its Bitcoin treasury has swelled to approximately $75.5 million. The company claims this figure represents a staggering 97.5% of its total market capitalization, signaling an almost complete alignment of shareholder value with the volatile digital asset.

The announcement marks a significant milestone in the company's ambitious $100 million Digital Asset Treasury (DAT) strategy, which aims to accumulate Bitcoin reserves equal to 100% of its market value. This positions Hyperscale Data as one of the most concentrated corporate Bitcoin holders on the public market, a strategy fraught with both immense potential and significant risk.

An Unprecedented Bet on Digital Gold

According to the company's press release, its Bitcoin treasury consists of two main components: approximately 498.46 Bitcoin currently held by its subsidiary, Sentinum, Inc., and a further $31.5 million in cash explicitly allocated for future open-market purchases. Based on a Bitcoin price of $88,175 as of December 14, 2025, its current holdings are valued at roughly $44 million. Of this, nearly 70 Bitcoin were generated through the company's own mining operations, with the remainder acquired through market purchases.

"Reaching 97.5% of the market capitalization is a significant milestone for the Company," stated Milton "Todd" Ault III, Executive Chairman of Hyperscale Data. "Despite volatility in the price of Bitcoin, we are focused at accumulating more Bitcoin at lower prices which positions the Company to further capitalize on long-term appreciation of Bitcoin."

However, the company's claim of its treasury representing 97.5% of its market cap warrants closer scrutiny. The calculation is based on the company's stock price at the market close on December 15, 2025. Publicly available financial data from multiple sources, including Nasdaq and other market data providers, places Hyperscale's market capitalization on that day between $86 million and $91 million. Using these figures, the $75.5 million treasury would represent a still-substantial but lower figure, ranging from approximately 83% to 88% of its market value. The discrepancy suggests the company's internal calculation may rely on a more favorable, but not widely reported, valuation.

The Double-Edged Sword of Volatility

By tethering its valuation so closely to Bitcoin, Hyperscale Data is making a high-conviction bet that exposes its investors to the cryptocurrency's notorious price swings. The risks were immediately apparent; in the hours following the company's valuation cutoff, Bitcoin's price experienced a notable dip, falling from over $90,000 earlier in the month to below $89,000, underscoring the daily volatility inherent in the strategy. A sustained downturn could significantly erode the company's asset base and, by extension, its stock price.

This strategy also introduces complex accounting challenges. Under current U.S. accounting standards, Bitcoin is treated as an indefinite-lived intangible asset. This means companies must record an impairment loss if the price drops below its purchase cost, negatively impacting quarterly earnings. However, they cannot write up the value of the asset on their balance sheet if the price increases, creating an asymmetric risk profile on financial statements that can obscure unrealized gains.

The potential rewards, however, are what drive this strategy. Companies like MicroStrategy have seen their stocks become de facto proxies for Bitcoin, attracting a loyal base of investors seeking crypto exposure through traditional equity markets. If Bitcoin's long-term upward trajectory continues, Hyperscale's early and aggressive accumulation could generate immense value for shareholders, far outpacing what its core operations might achieve alone.

A Strategic Pivot Amid Financial Headwinds

Hyperscale's all-in crypto strategy cannot be viewed in a vacuum. It coincides with a period of significant financial challenges and a major corporate restructuring. Recent financial data for the company reveals a difficult operating environment, with flat trailing-twelve-month revenues, negative operating and net margins, and a high debt-to-equity ratio. Key liquidity metrics and an Altman Z-Score deep in the "distress" zone suggest underlying financial instability.

Viewed through this lens, the Bitcoin strategy appears to be part of a radical transformation. The company is actively moving to shed its past identity as a complex, diversified holding company. A key part of this pivot is the planned divestiture of its wholly owned subsidiary, Ault Capital Group (ACG), expected in the second quarter of 2026. ACG operates across a wide range of industries, from social gaming and equipment rentals to defense and biopharma.

By spinning off ACG, Hyperscale Data aims to streamline its corporate structure and emerge as a pure-play entity focused on two synergistic areas: owning and operating data centers for the high-performance computing and AI ecosystems, and holding digital assets. This move concentrates both focus and risk, jettisoning a portfolio of underperforming assets to double down on the high-growth, high-risk world of AI infrastructure and cryptocurrency.

The company is building a business model where its operations and treasury are deeply intertwined. Its subsidiary, Sentinum, not only mines Bitcoin—directly contributing to the treasury—but also provides the data center colocation services that are critical for the broader AI and digital asset industries. Hyperscale has committed to issuing weekly reports on its Bitcoin holdings, providing a transparent, near-real-time look at the progress of its DAT strategy. For investors, Hyperscale Data is no longer just a tech company; it is a vehicle for a direct and uncompromising belief in the future of Bitcoin.