Ault Alliance, a diversified holding company, unveiled its preliminary unaudited revenue results for the third quarter (Q3) of 2023, showcasing a commendable surge in performance. The company reported a total revenue of $52.5 million for the quarter, in contrast to $49.7 million from the corresponding period last year. Following this announcement, the stock of Ault Alliance experienced a significant upswing in the market.
At the time of this publication, Ault Alliance Inc stock (AULT) has witnessed a surge.
Ault Alliance Inc
Current Price: $0.27
Change : +0.11
Change (%): (69.10%)
Volume: 75.0M
Source: Tomorrow Events Market Data
Milton “Todd” Ault III, Executive Chairman of Ault Alliance, expressed satisfaction with the Q3 results, emphasizing the company’s focus on cash flow-generating subsidiaries. He highlighted the robust performance of the Circle 8 crane operations and the Sentinum data centers, affirming that cash flow is on an upward trajectory, with an eye towards future profitability.
The Sentinum Bitcoin mining division is a standout performer, boasting an annualized revenue run rate of approximately $32 million, several times greater than Ault Alliance’s current market capitalization. The company remains puzzled by the market’s inability to fully value their cash-generating assets and reaffirms its dedication to the long-term potential of its operations, particularly the Sentinum Bitcoin mining venture.
Sentinum is in the process of expanding its operations, establishing an additional data center site in Montana. This facility will serve as a hosting hub for Bitcoin and other cryptocurrency miners.
Ault Venture Group, a subsidiary of Ault Alliance, holds various public ownerships of companies and foresees capitalizing on market opportunities over the next year. GIGA, trading as Gresham Worldwide, a defense firm, reported a remarkable revenue growth of over 12% from the previous quarter. Mr. Ault noted the robust expansion, particularly in the Israeli division, amidst ongoing conflicts. The company believes GIGA is undervalued and is collaborating with management to explore strategic avenues that can unlock the inherent value of the defense business and its subsidiaries.
Despite facing challenges, Ault Lending is exhibiting early signs of stabilization. Mr. Ault, while remaining cautiously optimistic, pointed out that their Midwest hotel portfolio is demonstrating stable seasonal revenue. The company aims to capitalize on the increasing trend of work-related travel and other opportunities in Rockford, IL, and Madison, WI. In a strategic move, Ault Alliance announced its intent to sell the recently renovated hotels for approximately $100 million and also listed the St. Petersburg property with an asking price of $20 million, focusing on core businesses.
Although BitNile Metaverse currently contributes minimally to revenue, Ault Alliance anticipates significant growth in this sector for 2024. Mr. Ault expressed confidence in the potential for substantial progress and promised to unveil their future plans in the coming weeks.
Ault Alliance projects a total consolidated revenue of $190-200 million for the fiscal year ending December 31, 2023. Mr. Ault emphasized the company’s commitment to establishing a foundation of stable revenue coupled with year-over-year growth.
In light of Ault Alliance’s common stock performance, Mr. Ault voiced dissatisfaction, highlighting ongoing efforts to communicate the company’s growth prospects to the market. He underscored the substantial improvements across their business lines and the dedication to building a more stable enterprise. While maintaining faith in the holding company model, Mr. Ault conveyed disappointment in the stock’s current performance.
