LAS VEGAS - Ault Alliance, Inc. (NYSE American: AULT), a diversified holding company, has announced strategic plans to enhance operations at its Sentinum, Inc. data centers. The company is set to relocate its Bitcoin mining activities to Montana and dedicate its Michigan facility to artificial intelligence (AI) hyperscale development.
Sentinum, a wholly owned subsidiary of Ault Alliance, is preparing to increase the Michigan data center's capacity from 30 megawatts (MWs) to up to 300MWs, contingent on securing necessary funding. This expansion is part of Sentinum's goal to become a prominent player in high-density computing and AI hyperscale operations.
The Michigan data center, which occupies 100,000 square feet within a larger 617,000 square foot building, is strategically located near power sources to utilize eco-friendly power. Over the next three to five years, Sentinum aims to substantially boost this facility's capacity, subject to adequate financial backing.
Additionally, Sentinum's new Montana facility is expected to be operational by March 2024, initially increasing power capacity by 10MWs. The company has begun an electrical load study with the local utility to explore potential power upgrades, with a view to significantly expanding the Montana sites.
Milton "Todd" Ault III, Founder and Executive Chairman of Ault Alliance, expressed optimism about the company's strategic vision and the market's response. He highlighted the critical role of AI in the company's future growth.
William B. Horne, CEO of Ault Alliance, reiterated the company's commitment to technology infrastructure expansion, emphasizing the search for financing and strategic partnerships to support the ambitious growth plans.
If the company secures the necessary resources, the expansion would enable Sentinum to scale its operations and strengthen its position as a technology sector entity focused on digital transformation and sustainability.
This announcement is based on a press release statement from Ault Alliance, Inc.
InvestingPro Insights
As Ault Alliance, Inc. (NYSE American: AULT) outlines its strategic shift towards expanding AI hyperscale capabilities and relocating Bitcoin mining operations, investors may be evaluating the company's financial health and market position. The latest data from InvestingPro presents a mixed picture for Ault Alliance. With a notably small market capitalization of 1.12M USD, the company is trading at a very low Price / Book multiple of 0.01 as of the last twelve months ending Q3 2023, which could indicate that the stock is undervalued relative to its assets.
However, the financial metrics reveal some challenges. The company has been experiencing rapid revenue growth, with a 75.93% increase over the last twelve months as of Q3 2023. Despite this, Ault Alliance operates with a significant debt burden and may have trouble making interest payments on its debt, which is a concern for potential investors. The company's stock has also been highly volatile, with a 1 Month Price Total Return of -35.89% and a 6 Month Price Total Return of -98.95%, reflecting substantial market uncertainty.
Investors looking for comprehensive analysis and additional insights can turn to InvestingPro for more in-depth information. For instance, among the several InvestingPro Tips available, it is noted that the Relative Strength Index (RSI) suggests the stock is currently in oversold territory, which might attract those looking for potential buying opportunities. Additionally, the company's net income is expected to grow this year, providing a glimmer of hope amidst the financial concerns. For those interested in exploring these metrics further, there are 19 additional InvestingPro Tips available at https://www.investing.com/pro/AULT, which could aid in making more informed investment decisions. Remember to use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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