Las Vegas-based AI data center company Hyperscale Data, Inc. (NYSE American: GPUS) has announced that its Bitcoin holdings have reached approximately $41.4 million, achieving about 41% of its stated $100 million target. Notably, the value of these holdings now represents more than half of the company’s current market capitalization of roughly $70.85 million.

As of February 8, the company held a total of 589.4502 Bitcoin, valued at a closing price of $70,264 per Bitcoin. These holdings are split between two wholly owned subsidiaries: Sentinum, Inc. and Ault Capital Group, Inc. (ACG).

Sentinum holds 548.5903 Bitcoin, while ACG holds 40.8994 Bitcoin. Of Sentinum’s total, 108.3562 Bitcoin were generated through mining operations, and 440.2341 Bitcoin were acquired through open market purchases. During the week ending February 8, ACG purchased an additional 8.9000 Bitcoin.

Executive Chairman Milton “Todd” Ault III stated that the company remains committed to its dollar-cost averaging (DCA) strategy. Under this approach, Hyperscale Data typically allocates at least 5% of its weekly available cash toward Bitcoin purchases, although the exact amount may vary depending on market conditions.

Despite its expanding Bitcoin treasury, the company faces financial challenges. Over the past twelve months, Hyperscale Data reported negative free cash flow of $40.15 million, indicating significant cash burn. Additionally, revenue declined by 19.67% in the most recent reporting period. The stock carries a beta of 2.65, signaling high volatility, and has experienced a substantial decline over the past year.

Hyperscale Data operates its digital asset mining and colocation services through Sentinum, while ACG functions as a diversified holding company. The company expects to divest ACG in the fourth quarter of 2026.

With its growing focus on Bitcoin accumulation, Hyperscale Data is pursuing an aggressive digital asset strategy. However, investors should carefully consider the company’s high volatility, declining revenues, and negative cash flow before making investment decisions.

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