GPUS

Hyperscale Data ($GPUS) Executive Buys $40M Despite 94% Crash: 'Last Chance' or 'Value Trap' Debate

09/30/2025 23:32

Hyperscale Data Inc ($GPUS) is a small-cap technology company specializing in AI data center operations. Originally operating under the name Ault Alliance, the company changed to its current name in September 2024, declaring strategic focus on AI data center business. The company aims to build a large-scale 340MW AI data center campus in Michigan and has recently achieved technological progress by deploying NVIDIA's latest Blackwell GPU infrastructure. The situation facing $GPUS investors is extremely dire. The stock price has plummeted 94% from $7.35 in October 2024 to $0.41 in September 2025. This represents not just a correction, but a level reflecting the market's fundamental doubt about the company's viability. However, amid this desperate situation, there's one notable signal: the endless buying spree by company officer Milton Ault III. Ault has continuously purchased company shares 41 times from June 2024 to present. Initially, he executed large-scale purchases worth millions of dollars at once, and even as the stock price declined, he continued buying consistently while reducing purchase sizes. Most recently on September 30, he bought 2,012 shares at $0.43. This can be interpreted as behavior showing confidence in the company's future, beyond mere ceremonial purchases. Particularly interesting is that Ault's buying pattern continues regardless of stock price declines. Whether the stock fell from the $8 range to $7 range, plunged to the $3 range, or even crashed below $1, he consistently bought. Such behavior typically appears when insiders know positive information unknown to external investors. Business progress continues to be positive. Q2 2025 revenue increased 45% year-over-year to $25.8 million, with annual revenue guidance of $125-135 million. Bitcoin mining alone generated $11.2 million in revenue through July, and recently the company announced a $100 million Bitcoin treasury strategy, clarifying its intention to transform into a digital asset company. The most noteworthy achievement is successfully deploying NVIDIA's latest Blackwell AI infrastructure at the Michigan data center. This shows the company is evolving from a simple Bitcoin mining company to a cutting-edge AI infrastructure provider. Expanded collaboration with Silicon Valley cloud providers supports this transformation. So why does the stock continue declining despite such positive progress? The key lies in small-cap characteristics. With a market cap of only $33.63 million, $GPUS is outside institutional investors' interest and has extremely limited liquidity. Daily trading volume is low, creating a structure where small selling volumes can significantly shake the stock price. Additionally, the company's continuous fundraising creates stock price pressure. This year alone, the company announced various fundraising totaling $275 million, leading to concerns about existing shareholder dilution. Key metrics investors should watch include: quarterly revenue growth sustainability, Michigan AI data center utilization rates and customer acquisition, and Bitcoin holdings and mining profitability changes. In a positive scenario, AI data center business could achieve exponential revenue growth once fully operational, while rising Bitcoin prices could maximize treasury strategy effects. Ault's continuous buying may signal confidence in this scenario. In a risk scenario, intensifying AI data center competition could push the company out against larger players, or accelerating dilution from continuous fundraising could continue. Particularly at current price levels, delisting risk cannot be ruled out. Currently, $GPUS is either extremely undervalued or reflecting fundamental business model problems. Ault's continuous buying suggests the former, but given small-cap high volatility and liquidity constraints, this requires very careful investment approach.