Hyperscale Data, Inc. (GPUS) added 18.594 Bitcoin this week, bringing its total stash to over 1,106 coins worth roughly $69.7 million. The company's shares traded nearly 4% lower on the day of the announcement, even as the digital asset pile swells.
A $100 million target
Executive Chairman Milton 'Todd' Ault III said the latest purchase strengthens the balance sheet and expands financial flexibility. Hyperscale Data aims to build a $100 million digital asset treasury and eventually achieve parity between its Bitcoin holdings and its own market capitalization. The Bitcoin is held across wholly owned subsidiaries Sentinum, Inc. and Ault Capital Group, Inc.
Bitcoin holdings now exceed market cap
Here's the unusual part: Hyperscale's Bitcoin is now worth more than the entire company's stock market value. That's a rare situation — a firm's crypto treasury outweighs its equity valuation. It suggests the market is pricing the stock at a discount to the underlying Bitcoin, or that investors see other risks in the business.
Following the MicroStrategy playbook
The company is openly borrowing from the playbook of Strategy (formerly MicroStrategy), using spare cash to buy Bitcoin rather than sitting on idle dollars. The approach has worked for Michael Saylor's firm, but it also ties corporate health to Bitcoin's volatile price. Hyperscale's latest buy follows a 51.5-coin purchase last week, showing a steady accumulation pace.
Stock reaction
Shares dipped about 4% on the news. The timing isn't great — the broader crypto market has been choppy, and investors may be questioning whether the strategy will lift the stock price anytime soon. Still, the company is pressing ahead with its $100 million treasury goal, and the next milestone will be whether it can close the gap between its Bitcoin holdings and its market cap.
