Hyperscale Data Reports 45% Revenue Increase to $25.9 Million in Q2 2025

Hyperscale Data, Inc. reported a total revenue of $25.9 million for the three months ended June 30, 2025, marking a 45% increase from $17.8 million in the same period last year. The company’s revenue for the six months ended June 30, 2025, was $50.9 million, down 10% from $56.2 million in the prior year. The increase in quarterly revenue was driven primarily by a significant turnaround in the lending and trading activities segment, which generated $1.8 million compared to a loss of $9.8 million in the previous year. However, revenue from crypto asset mining decreased by 45% to $4.7 million, attributed to increased mining difficulty and the impact of the Bitcoin halving event.

The company reported a net loss of $19.1 million for the second quarter of 2025, an improvement from a net loss of $33.9 million in the same quarter of 2024. For the first half of 2025, the net loss was $23.3 million, compared to a loss of $30.2 million in the prior year. The reduction in losses was aided by a decrease in total operating expenses, which fell to $16.3 million from $23.1 million year-over-year, largely due to the absence of impairment charges related to property and equipment that were recorded in the previous year.

In terms of operational developments, Hyperscale Data's customer base and engagement metrics showed positive trends. The company reported an increase in its Class A common stock shares outstanding, rising to 8.7 million as of June 30, 2025, from 1.3 million at the end of 2024. The company also deconsolidated two subsidiaries, Avalanche International Corp. and Eco Pack Technologies, which filed for bankruptcy, resulting in a gain of $10 million and a loss of $0.4 million, respectively. These changes reflect a strategic shift as the company focuses on its core data center operations and crypto asset mining.

Looking ahead, Hyperscale Data anticipates raising additional capital through the sale of equity or debt securities to support its operations. The company has expressed concerns regarding its liquidity, with cash and cash equivalents totaling $5.9 million and negative working capital of $139.4 million as of June 30, 2025. Management has indicated that existing resources may not be sufficient to fund operations for the next year, emphasizing the need for timely capital raises to avoid operational disruptions.

Overall, while Hyperscale Data has shown improvements in revenue and reduced losses, the company faces significant challenges related to liquidity and operational sustainability. The outlook remains cautious as management navigates the complexities of its financial position and seeks to stabilize its operations in a competitive market.