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.
This press release features multimedia. View
the full release here:
https://www.businesswire.com/news/home/20240124390400/en/
Interior Photo of a Portion of the
Michigan Data Center (Photo: Business Wire)
Dear Stockholders:
We are pleased to provide you with a business update as of the
date of this letter. Our commitment to transparency and effective
communication drives us to share clear and concise information
about the Company’s financial status and strategic plans.
As of January 23, 2024, Ault Alliance had 5.9 million shares of
common stock outstanding. Based on the Company’s balance sheet as
of September 30, 2023, the book value of Ault Alliance’s common
stock is approximately $15.25 per share. In contrast, the Company’s
common stock currently trades at a 96% discount to book value and
it has a market capitalization of approximately $3.6 million.
In December 2023, the Company completed a $41.5 million Series C
convertible preferred stock financing with Ault & Company, Inc.
(“A&C”), an affiliate of the Company. As a result of the
A&C financing, the Company repaid $38.5 million of its senior
secured debt, strengthening its balance sheet by reducing the
overall debt and increasing stockholders’ equity.
Looking ahead, we project robust financial growth. The Company
is targeting gross consolidated revenue of between $230 million and
$240 million for the year 2024. This projection is a strong
indicator of the strength of our business model and our commitment
to create value for our stockholders.
In 2024, we plan to adjust our organizational structure to
augment the Company’s prospects. Ultimately, this transition will
result in two reporting segments, consisting of Sentinum, Inc.
(“Sentinum”) and a to-be-formed subsidiary, Ault Capital
Group, Inc. (“Ault Capital Group”). We believe the growth
opportunities available to the Company through Sentinum are
extremely attractive and warrant a significant adjustment to
capital allocation strategy and future plans. Ault Capital Group
contains all investments and entities other than Sentinum,
including Circle 8 Crane Services, LLC (“Circle 8”) and
RiskOn International, Inc. (“ROI”). Over time, we plan to
monetize assets within Ault Capital Group to contribute additional
capital to the growth of Sentinum and its Artificial Intelligence
(“AI”) data center operations.
Through Sentinum, we offer colocation and hosting services for
emerging AI ecosystems. We plan, subject to raising the necessary
capital, to increase power capacity at our Michigan data center to
launch and grow hosting services at the facility. Further, the
Sentinum team is making progress on developing the Montana data
center site, which is now expected to come online during March
2024. Once the Montana site becomes operational, it will
significantly change Sentinum’s cryptocurrency operations, as we
shift bitcoin miners to lower cost power facilities. The ability to
operate machines in Montana provides Sentinum the flexibility to
either relocate machines from the Michigan data center, thereby
increasing the amount of power available for higher margin AI data
center operations, or relocate machines that are currently operated
pursuant to third party hosting agreements. Either alternative will
lead to improvements in Sentinum’s profitability.
The Company is also encouraged by the ongoing financial
performance at Circle 8, and recent announcements at its majority
beneficially owned subsidiary ROI, including the launch of
“askROI.com” an innovative generative AI product that is designed
to improve the way businesses and individuals manage and access
their data.
The Company remains committed to right sizing the undervaluation
of its common stock. Given that the Company’s common stock trades
at a 96% discount to book value, the Company will explore a variety
of measures to correct the current low trading price of its common
stock.
Overall, I am confident in the plans that the Company’s
management has laid out for 2024 and beyond. I am committed to the
long-term future of this Company and have shown my commitment
through a sizable investment from my private holding company,
A&C. I believe that 2024 will be a prosperous year for the
Company and its subsidiaries as they embark on a mission to become
more efficient, improve profitability, and to nurture their
respective investments to enhance stockholder value.
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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