Hyperscale Data, Inc. (AMEX:GPUS) shares rose in Wednesday’s premarket trading after the company outlined plans for a potential AI compute and neocloud services agreement.
Potential AI Services Agreement
Hyperscale Data expects to finalize an agreement in the coming weeks.
It would provide AI compute and neocloud services to a California-based AI company with global operations.
The proposed engagement would include advanced computing infrastructure, AI data center capacity and related neocloud capabilities.
The company said it has a high degree of confidence that the agreement will be executed. It plans to disclose the customer’s identity, contract terms, service scope and deployment schedule after signing.
However, Hyperscale Data cautioned that the parties may not complete the agreement within the expected timeframe, or at all. The company also provided no estimate of the potential revenue contribution.
Neocloud Strategy Gains Momentum
The prospective agreement would advance Hyperscale Data’s shift beyond traditional data center hosting. It would support a vertically integrated AI infrastructure and managed neocloud services platform.
CEO Will Horne said the deal would be smaller than the company’s recently announced master services agreement but strategically important because Hyperscale Data expects to provide the neocloud services directly.
“This represents an important evolution of our business model as we move beyond providing data center capacity and begin delivering integrated AI compute, infrastructure and neocloud services,” Horne said.
In June, Hyperscale Data signed a 10-year master services agreement with a California-based neocloud provider valued at approximately $1.2 billion. Expansion options could increase the potential contract value to more than $3 billion.
Bitcoin Treasury Expands
Hyperscale Data held 1,032.4959 Bitcoin (CRYPTO: BTC/USD) valued at approximately $65.8 million as of July 12, based on Bitcoin’s closing price of $63,758.
Its Ault Capital Group subsidiary purchased about 130 Bitcoin in the open market during the week ended July 12.
Short Interest Rises Sharply
Short interest increased to 54.04 million shares from 30.62 million during the latest reporting period, representing 88.18% of the company’s public float.
Based on average daily trading volume of 323.22 million shares, short sellers would need roughly one day to cover their positions.
Hyperscale Data operates a data center through its Sentinum subsidiary and expects to divest Ault Capital Group in the second quarter of 2027.
GPUS Stock Price Activity: Hyperscale Data shares were up 2.64% at $0.14 during premarket trading on Wednesday, according to Benzinga Pro data.
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