Hyperscale Data expects revenue to reach as much as $350 million in 2027, although the AI expansion consuming its Bitcoin holdings may contribute less than one-sixth of the total.
In a statement this week, the company said that this projected revenue would triple the roughly $102 million generated in 2025. Its Adjusted EBITDA is projected at $60 million to $80 million for the year.
Instead, the firm added that most of its revenue for the impending year would come from lending, digital assets and portfolio companies.
Executive Chairman Milton “Todd” Ault III said the forecast reflects the combined contribution of Hyperscale’s three operating platforms. He said:
“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.”
Bitcoin bankrolls Hyperscale’s revenue engine
A breakdown of the forecast shows that Hyperscale’s heavily promoted AI transformation will remain the smallest of its three revenue platforms in 2027.
Management expects the Michigan data center, AI infrastructure and robotics businesses to generate $40 million to $50 million next year. That would represent about 11% to 17% of the company’s projected $300 million to $350 million 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 Aug. 2, reducing its holdings to 958.5352 BTC worth about $60.8 million. It also borrowed roughly $30 million against part of the treasury through Morpho at a variable interest rate of approximately 4.9%.
During the firm’s 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 this entire year.
Chief Executive William Horne therefore described 2027 as a “transition year.” Hyperscale expects data center revenue to rise to between $110 million and $120 million in 2028 as another 32 megawatts of capacity become operational.
Meanwhile, the longer-term economics are considerably larger than the initial 2027 contribution.
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. Exercising that capacity and remaining for the maximum term could lift the total contract value above $3 billion.
Hyperscale is therefore exchanging near-term Bitcoin liquidity for a longer-duration AI payoff.
Lending and portfolio companies carry the 2027 forecast
While AI represents Hyperscale’s longer-term growth bet, lending, digital assets and established portfolio businesses are expected to generate most of its revenue in 2027.
Management projects $100 million to $150 million from lending, financial services and digital assets. Portfolio companies are expected to contribute another $150 million to $200 million, making the businesses operated through Ault Capital Group the principal drivers of Hyperscale’s $350 million target.
Ault Lending generates revenue by originating private-credit and structured-finance transactions. It can also bring participation partners into larger deals, allowing the company to collect fees and interest without supplying all the required capital itself.
The transactions may include convertible notes, warrants and other protections that provide additional upside beyond ordinary interest income.
Ault said the operation requires relatively few employees and can produce margins approaching 85% before capital and staffing costs. Cragun also noted that a growing pipeline and the addition of more participation partners should make revenue larger and more consistent, although the results can still vary significantly between periods.
Meanwhile, Hyperscale’s digital-asset strategy extends beyond its Bitcoin treasury.
The firm’s projected revenue includes those 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 financial-technology 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. “
Lastly, its portfolio companies provide a more predictable foundation beneath those 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 its focus from acquiring companies to improving cash flow from the assets it already owns.
Cragun described the portfolio as a stable revenue base that can offset fluctuations in Bitcoin, lending and investment returns.
Ultimately, those businesses explain how Hyperscale can target as much as $350 million in 2027 revenue while AI contributes less than 17% of the total.
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