Ault Alliance, Inc. (NYSE American: AULT), a diversified holding
company (“Ault Alliance,” or the “Company”), today
issued a letter from its Executive Chairman to its valued
stockholders.
Dear Stockholders:
As Executive Chairman of the Company, I wish to share the latest
updates and insights into the Company’s strategic direction, and to
address the current perception of the Company’s value and
potential.
1. Strategic Reorganization into Two Key Entities
I am thrilled to announce that we plan to reorganize our Company
into two primary holding subsidiaries:
Sentinum
Sentinum, Inc. (‘Sentinum”). This data center business is
at the forefront of our ventures into the emerging field of
artificial intelligence (“AI”) and data processing. Sentinum
offers colocation and hosting services for emerging AI ecosystems
facilitated through its subsidiary, Alliance Cloud Services, LLC
from its Michigan facility. The Michigan data center utilizes
approximately 100,000 square feet within a 617,000 square foot
building on a 34.5-acre site in southern Michigan. The data center,
which is strategically positioned near power production sites,
boasts a current capacity of approximately 28 megawatts
(“MWs”) of energy-efficient power, and has the potential,
subject to raising sufficient capital, to reach approximately
300MWs over the next five years.
In addition, Sentinum’s new facility in Montana, which is on
track to become operational in March 2024, is expected to initially
add an incremental 10MWs and has current capacity of approximately
20MWs. Sentinum believes that the capacity of the Montana sites can
be significantly expanded and has contracted with the local utility
to begin an electrical load study in order to better understand the
opportunities for power upgrades at its Montana sites. Pending the
results of the study, Sentinum would also require additional
financial resources in order to increase the capacity.
This expansion is a testament to the commitment to leveraging
the latest technology, while positioning the Company for financial
growth through incremental capacity and resources. We plan to
relocate bitcoin miners to the Montana site, taking advantage of
lower cost power facilities, which is a significant step in
optimizing our operations. This move offers Sentinum enhanced
operational flexibility. We can either transfer machines from our
Michigan data center, thereby freeing up power for more profitable
AI data center operations, or we can relocate machines currently
engaged in third-party hosting agreements. Whichever path we
choose, it is poised to substantially improve Sentinum’s
profitability, reinforcing our commitment to growth and operational
efficiency.
Furthermore, Sentinum, on the back of this transition towards a
self-sustaining data center model, will evaluate new opportunities
for additional acquisitions to bolster its power capabilities and
overall footprint within the data center and AI space. I believe in
the exceptional potential of Sentinum as a cornerstone in our
strategy to lead in the technology and AI space.
Ault Capital Group
Ault Capital Group, Inc. (“Ault Capital Group”).
Operating principally as our investment arm, this entity will
manage all other investments, including our investment in Circle 8
Cranes Services, LLC. Ault Capital Group will look to leverage the
collective strengths of our diverse portfolio, driving innovation
and value across the board.
2. Recognizing the Full Potential of Ault Alliance
Despite our strategic advancements, I sense a vast
underappreciation in the market for what Ault Alliance truly
represents. This communication is a reaffirmation of the untapped
opportunities within our restructured organization.
3. Billion-Dollar Aspirations in Our Evolved
Portfolio
With the restructuring, we believe that both Sentinum and Ault
Capital Group have great potential on their own, with each having
the potential to exceed a billion-dollar valuation within the next
60 months. My confidence in these projections is based on detailed
strategic planning and a deep understanding of the intrinsic value
these ventures offer.
4. Your Role in Our Shared Vision
As we embark on this journey, the role of our stockholders has
never been more crucial. Your continued support and belief in our
vision are vital for turning our aspirations into reality and
propelling Ault Alliance into an era of unprecedented success and
innovation.
In conclusion, our focus remains on sustainable, significant
growth, transcending immediate outcomes. As Executive Chairman, I
am fully committed to leading Ault Alliance through this exciting
phase of transformation and growth.
Thank you for your unwavering trust and commitment to our shared
future.
Regards,
Milton “Todd” Ault, III Executive Chairman
Ault Alliance reminds you that its estimates and projections are
subject to the volatility in Bitcoin market price, the fluctuation
in the mining difficulty level, the ability to build out and
provide the necessary power for miners, and other factors that may
impact the results of Bitcoin mining production or operations. The
Company’s trading activities, encompassing both realized and
unrealized gains or losses, can cause notable volatility in its
reported earnings.
For more information on Ault Alliance and its subsidiaries, Ault
Alliance recommends that stockholders, investors, and any other
interested parties read Ault Alliance’s public filings and press
releases available under the Investor Relations section at
www.Ault.com or at www.sec.gov.
About Ault Alliance, Inc.
Ault Alliance, Inc. is a diversified holding company pursuing
growth by acquiring undervalued businesses and disruptive
technologies with a global impact. Through its wholly and
majority-owned subsidiaries and strategic investments, Ault
Alliance owns and operates a data center at which it mines Bitcoin
and offers colocation and hosting services for the emerging
artificial intelligence ecosystems and other industries, and
provides mission-critical products that support a diverse range of
industries, including metaverse platform, oil exploration, crane
services, defense/aerospace, industrial, automotive,
medical/biopharma, consumer electronics, hotel operations and
textiles. In addition, Ault Alliance extends credit to select
entrepreneurial businesses through a licensed lending subsidiary.
Ault Alliance’s headquarters are located at 11411 Southern
Highlands Parkway, Suite 240, Las Vegas, NV 89141;
www.Ault.com.
Forward-Looking Statements
This press release contains “forward-looking statements” within
the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended. These forward-looking statements generally include
statements that are predictive in nature and depend upon or refer
to future events or conditions, and include words such as
“believes,” “plans,” “anticipates,” “projects,” “estimates,”
“expects,” “intends,” “strategy,” “future,” “opportunity,” “may,”
“will,” “should,” “could,” “potential,” or similar expressions.
Statements that are not historical facts are forward-looking
statements. Forward-looking statements are based on current beliefs
and assumptions that are subject to risks and uncertainties.
Forward-looking statements speak only as of the date they are
made, and the Company undertakes no obligation to update any of
them publicly in light of new information or future events. Actual
results could differ materially from those contained in any
forward-looking statement as a result of various factors. More
information, including potential risk factors, that could affect
the Company’s business and financial results are included in the
Company’s filings with the U.S. Securities and Exchange Commission,
including, but not limited to, the Company’s Forms 10-K, 10-Q and
8- K. All filings are available at www.sec.gov and on the Company’s
website at www.Ault.com.
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Ault Alliance Investor Contact: IR@Ault.com or
1-888-753-2235
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