Hyperscale (bitcoin miner) AI business set to deliver less than 20% of expected 2027 revenue despite selling Bitcoin holdings.

Hyperscale Data expects revenue to reach as much as $350 million in 2027, although its AI expansion consuming Bitcoin holdings is projected to contribute less than one-sixth of the total. The company said this projected revenue would triple the roughly $102 million generated in 2025, with Adjusted EBITDA projected at $60 million to $80 million for the year.

Executive Chairman Milton "Todd" Ault III said the forecast reflects the combined contribution of Hyperscale's three operating platforms, stating: "We have spent years assembling operating businesses, financial capabilities, technology platforms and strategic assets that we believe can produce substantial revenue and operating cash flow. Our preliminary guidance of $300 million to $350 million in revenue and $60 million to $80 million in Adjusted EBITDA reflects management's current expectations regarding the combined earnings power of these three operating platforms."

However, management expects the Michigan data center, AI infrastructure and robotics businesses to generate only $40 million to $50 million in 2027—representing approximately 11% to 17% of projected revenue. Despite that limited near-term contribution, Hyperscale is directing much of its recent Bitcoin capital toward the AI business.

The company sold 150.5 BTC for approximately $9.6 million during the week ended August 2, reducing its holdings to 958.5352 BTC worth about $60.8 million. It also borrowed roughly $30 million against part of its treasury through Morpho at a variable interest rate of approximately 4.9%. During the earnings call, Ault said Hyperscale sold the Bitcoin because "the data center is so important." Chief Financial Officer Ken Cragun described the Morpho facility as a relatively inexpensive source of financial flexibility, while management said Bitcoin produced by the company's remaining mining operations could be deposited into the protocol to support the loan.

The capital is helping convert Hyperscale's Michigan Bitcoin-mining site into an AI data center. Management estimates that developing the first 20 megawatts of critical capacity will require between $100 million and $120 million. The first 10 megawatts are expected to begin operating before the end of 2026, followed by another 10 megawatts in the first quarter of 2027. Because the capacity will come online in stages, it will not contribute revenue for the entire year. Chief Executive William Horne described 2027 as a "transition year," with Hyperscale expecting data center revenue to rise to between $110 million and $120 million in 2028 as another 32 megawatts of capacity become operational.

The longer-term economics are considerably larger. Hyperscale's agreement with a California-based neocloud provider covers 20 megawatts for an initial 10-year term and includes two five-year extension options. The contract could generate more than $1.2 billion if the customer remains for the full 20 years. Horne said the agreement would produce average annual revenue of approximately $50 million, including contractual price increases, against an initial investment equal to about 10% of its potential value. The customer also has the option to expand from 20 megawatts to 52 megawatts, which could lift the total contract value above $3 billion.

While AI represents Hyperscale's longer-term growth bet, lending, digital assets and established portfolio businesses are expected to generate most of its 2027 revenue. Management projects $100 million to $150 million from lending, financial services and digital assets, with portfolio companies expected to contribute another $150 million to $200 million, making the businesses operated through Ault Capital Group the principal drivers of the $350 million target.

Ault Lending generates revenue by originating private-credit and structured-finance transactions, and can bring participation partners into larger deals to collect fees and interest without supplying all required capital. Transactions may include convertible notes, warrants and other protections that provide additional upside beyond ordinary interest income. The operation requires relatively few employees and can produce margins approaching 85% before capital and staffing costs. Cragun noted that a growing pipeline and the addition of more participation partners should make revenue larger and more consistent, although results can still vary significantly between periods.

Hyperscale's digital-asset strategy extends beyond its Bitcoin treasury. The firm's projected revenue includes contributions from initiatives at Ault Markets, blockchain infrastructure, trading and liquidity services, tokenized lending, and other real-world asset initiatives. Management said the blockchain operation had already generated millions of dollars in revenue and approximately $3.5 million of margin during the first half of 2026. The company expects that contribution to expand through tokenization, trading activity and partnerships with fintech companies. Ault said: "If you want to compare Ault Markets and what we're doing internationally, I would compare it to Hyperliquid, sort of a Hyperliquid lighter model, but also the tokenization of real-world assets. This is going to be a huge driver for us with our relationship with Universal DeFi."

Portfolio companies provide a more predictable foundation beneath the higher-margin but more volatile financial businesses. The holdings span crane and equipment rental, defense electronics, hotels and power electronics. Ault said the crane operation generates just under $50 million of annual revenue and between $10 million and $12 million of EBITDA without requiring further capital from Hyperscale. The defense-electronics business generates roughly $40 million in annual revenue. Management has also replaced executives, restructured debt and reduced costs at several other holdings as it shifts focus from acquiring companies to improving cash flow from existing assets. Cragun described the portfolio as a stable revenue base that can offset fluctuations in Bitcoin, lending and investment returns.