Hyperscale Data, Inc. (NYSE:GPUS) shares fell on Thursday, reversing momentum from a positive rally following the company’s announcement of a major AI data center services agreement.
The company said Thursday that it held approximately $94.8 million in cash, restricted cash, Bitcoin and silver as of June 24, 2026.
• Hyperscale Data shares are sliding. Why are GPUS shares down?
AI Data Center Agreement Announced Wednesday
Hyperscale Data announced on Wednesday that its subsidiary, Alliance Cloud Services, signed a master services agreement with a California-based neocloud provider for colocation and data center services at its Michigan campus.
The deal covers 20 megawatts of AI compute capacity expected to come online in the fourth quarter of 2026, with an option to expand to 52 megawatts.
Hyperscale Data expects the agreement to generate more than $1.2 billion over the full term. Revenue could exceed $3 billion if the customer exercises the additional 32-megawatt option and extensions.
Balance Sheet and Campus Transition
Hyperscale Data also said it held approximately $94.8 million in cash, restricted cash, Bitcoin and silver as of June 24, 2026, equal to 100.42% of the market capitalization of its class A common stock at that day’s close.
The company expects to spend $100 million to $120 million to retrofit about 60,000 square feet at its Michigan campus for the initial 20-megawatt deployment.
The campus could eventually support more than 300 megawatts, subject to approvals, financing and infrastructure.
“We are extremely confident in the Company’s position after the announcement of the signing of a Master Services Agreement (“MSA”) worth approximately $1.2 billion, presuming exercise of the two five-year extensions, but before any exercise of options for additional power capacity,” commented Executive Chairman Milton "Todd" Ault III.
“We strongly believe that the value we are creating for stockholders, including the recurring monthly revenue from the MSA, is not being properly recognized and no value is being ascribed to this transformational event for the company.”
GPUS Technical Outlook: Key Moving Averages and Momentum
The stock is currently trading about 16.4% below its 20-day simple moving average of 22 cents, signaling recent weakness. However, it remains slightly above its 50-day SMA of 17 cents, suggesting that level may be acting as near-term support.
Momentum remains neutral, with the Relative Strength Index at 45.83, indicating the stock is neither overbought nor oversold.
The moving averages show a mixed technical setup. While the 20-day SMA remains above the 50-day SMA, suggesting some short-term strength, the 50-day SMA remains below the 200-day SMA, indicating the broader trend remains bearish.
Overall, the setup suggests limited near-term support, but the longer-term trend remains under pressure.
GPUS Stock Price Activity: Hyperscale Data shares were down 7.98% at 17 cents at the time of publication on Thursday, according to Benzinga Pro data.
Image via Shutterstock
Login to comment