Hyperscale Data Keeps $10M XRP Hoard, Ault Capital Spin-Off Faces Delay

Hyperscale Data, Inc. (NYSE American: GPUS) has made it crystal clear: the XRP cryptocurrency it's scooping up will stay on its own balance sheet, not slide over to its subsidiary, Ault Capital Group, Inc. This clarification comes amid plans to offload Ault Capital by the end of 2025-though Hyperscale is cautious, noting the sale might not wrap up this year.

The company's exec, Milton "Todd" Ault III, spelled it out. Even after the spin-off of Ault Capital, the XRP stash stays firmly in Hyperscale's hands. Essentially, the parent company's positioning itself as a pure data center operator, and the XRP acquisition isn't just some side project-it's part of its broader treasury management plan. Starting mid-August, Hyperscale will start sharing weekly updates on its XRP buying spree.

This move fits with Hyperscale's overall setup. Through its fully owned Sentinum, Inc., it runs data centers mining digital assets and provides colocation and hosting services, especially catering to AI ventures along with other sectors. Meanwhile, Ault Capital Group pursues growth through acquisitions, but since Hyperscale is looking to divest it, the corporate structures are getting a shuffle.

The XRP holdings clarity comes as Ault Capital Group signals it'll pursue its own XRP buying approach separately, along with launching a lending platform connected to XRP. It's a layered strategy, with both arms playing in the crypto space but keeping their accounts distinct.

The planned Ault Capital divestiture will go down via an exchange of Series F Exchangeable Preferred Stock for common stock classes. Whether or not it closes on time remains up in the air, but the key takeaway is that the $10 million XRP purchase line item remains squarely on Hyperscale Data's books, not offloaded to the soon-to-be-former subsidiary.