Why Is Ault Alliance Stock Soaring Today?

Ault Alliance Inc AULT shares are trading higher by over 30% following the company's Q3 FY23 preliminary results.

The company reported preliminary revenues of $52.5 million, up from $49.8 million a year ago.

The annualized revenue run rate of Sentinum Bitcoin mining is around $32 million, much higher than the current market capitalization of AULT. 

Sentinum is presently building an additional data center site in Montana and plans to use it as a hosting facility for Bitcoin and other cryptocurrency miners.

On the other hand, the company sees steady growth in the Ault Venture Group and Defense Sector, with GIGA revenue reporting revenue growth of over 12% vs. last quarter. 

AULT says that the defense business, especially in the Israeli division, is experiencing robust growth amidst the current conflict.

"Our Midwest hotel portfolio is showing stable seasonal revenue and hopes to capitalize on growing work travel trends and other opportunities in both Rockford, IL, and Madison, WI," stated Milton "Todd" Ault III, Executive Chairman.

"The company previously announced that it seeks to sell the newly renovated hotels for approximately $100 million in addition to the decision to also list the St. Petersburg property for a $20 million asking price. The decision to list the properties is driven by the company's desire to focus on its core businesses," added Ault III.

Outlook: AULT expects revenue of $190 million - $200 million for FY23. The company expects higher revenue growth in its BitNile Metaverse business for 2024, which is currently not contributing significantly to revenue. 

"We are working diligently to articulate the company's growth prospects to the market. We are making dramatic improvements across our business lines and are focused on building a more stable enterprise. While we maintain our belief in the holding company model, we are incredibly disappointed in the stock's performance," added Milton "Todd" Ault III.

Price Action: AULT shares are up 30.9% at $0.19 premarket on the last check Monday.