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:
Ault Alliance proudly announces its financial results for the
third quarter 2023 and a strategic shift in capital raising
plans.
The Company recently announced a strategic corporate alignment,
whereby it intends to focus on the strengths of its three core
subsidiaries, Circle 8 Crane Services LLC (“Circle 8”),
Sentinum, Inc. (“Sentinum”), and Ault Venture Group. Ault
Venture Group, which has not yet been formed, will house all other
subsidiaries and will serve as the investment side of Ault
Alliance. Ault Venture Group is expected to include Ault Lending,
LLC and Ault Alliance’s ownership of other public companies.
In line with our strategic focus, we have listed key properties
owned by Ault Global Real Estate Equities, Inc. (“AGREE”)
for sale, with the goal of streamlining our holdings and reducing
debt. This move aligns with our commitment to concentrate on our
core businesses and optimize capital allocation. The net assets of
AGREE met the criteria for classification as held for sale and we
presented the financial results of AGREE as discontinued operations
in our third quarter 2023 financial results.
Key third quarter 2023 financial highlights included:
- Total assets of $378 million as of September 30, 2023;
- A book value of $7.23 per share;
- Total stockholders’ equity exceeding $119 million;
- Revenue growth of 38% from the prior period, reaching $120
million for the nine months ended September 30, 2023;
- Revenue from Sentinum’s Bitcoin mining operations for the nine
months ended September 30, 2023 were $23 million, up $12 million,
or 104%, from $11 million in the prior fiscal period; and
- Revenue from Circle 8, acquired in December 2022, were $39
million for the nine months ended September 30, 2023.
The company’s financial results for the three and nine months
ended September 30, 2023 can be found on the Company’s Form 10-Q
filed with the Securities and Exchange Commission on November 20,
2023.
Our Bitcoin operations and our data center, at which we mine
Bitcoin and offer colocation and hosting services for the emerging
artificial intelligence ecosystems and other industries, were
significant in increasing our revenues for this reporting period.
The Sentinum team is making tremendous progress on developing our
Montana site and the team is excited for it to come online. Once
the Montana site becomes operational, which is expected to occur in
the first quarter 2024, it will significantly change the Sentinum
financial model as we shift our machines away from third party
hosting agreements and back into our own facilities. Hosting our
own machines will significantly improve top line revenue as well as
profitability.
The Circle 8 crane operations, which contribute significantly to
our revenue, reflect our strategic focus on sectors that enhance
our cash flow and business stability.
Further, we have revised our capital-raising approach. We will
maintain our existing At-The-Market issuance agreement without
amendments and currently have no plans for a new agreement in 2024
after sales of our common stock under the existing agreement is
completed. This strategy reflects our confidence in our financial
stability and commitment to stockholder value.
Ault Alliance is actively exploring options to address the
undervaluation of our common stock. Our strategies, including
potential share buybacks, tender offers or special dividends funded
by Bitcoin operations, are focused on enhancing stockholder value.
We remain committed to structuring our business for sustainable
profitability and long-term growth.
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. Our
trading activities, encompassing both realized and unrealized gains
or losses, can cause notable volatility in our 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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