Ault Alliance Issues Letter to Stockholders

Ault Alliance Emphasizes that the Market Price of Its Common Stock Continues to Trade at a Significant Discount to Its Net Book Value

Ault Alliance, Inc. (NYSE American: AULT), a diversified holding company (“Ault Alliance,” or the “Company”), today shared a letter from its Executive Chairman to its stockholders.

Dear Stockholders,

I am reaching out to share an update about our outlook on the future for the Company.

Financial Highlights:

As of March 19, 2024, the Company had approximately 30.0 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 $2.98 per share. Our common stock currently trades at a significant discount to the book value.

The previously announced preliminary revenue of $169 million for the full year 2023 reflects the productive asset base the Company has built. I believe our key investments and productive assets will provide significant upside for growth, including what we believe are opportunities related to artificial intelligence (“AI”).

Strategic & Operational Highlights:

The recent termination of the at-the-market (“ATM”) facility for the Company’s common stock aligns with our strategy to optimize the financing of operations and avoid further dilution.

Our data center in Michigan (the “Michigan Data Center”), owned by Sentinum, Inc. (“Sentinum”), is a foundational asset for the Company. While the book value of the Michigan Data Center is held on the balance sheet at approximately $20 million, I believe the true value of the asset to be significantly higher. Sentinum currently utilizes approximately 30 megawatts (“MW”) at the Michigan Data Center, however, the facility has the opportunity to expand to 300 MW, subject to the Company’s receipt of state regulatory approvals adequate funding, which it may or may not obtain. The Michigan Data Center has nearly 14 acres under roof at 617,000 square feet with an additional 20 acres of land available to support expansion. The power expansion potential coupled with the size and ability to scale into a hyper-scale generative AI facility provides, in our view, a significant upside for the facility and the Company as a whole.

Market Position & Outlook:

I truly believe that the public market, as reflected in the current trading price of our stock, does not fully recognize or value the Company appropriately. We have assets, such as the Michigan Data Center, our property in St. Petersburg, and the four hotels within our Ault Global Real Estate Equities, Inc. subsidiary, that each could sell for more than the entire current market capitalization of Ault Alliance. The diverse portfolio of assets assembled by the Company are currently anticipated to generate approximately $200 million or more of topline revenue in 2024 and the public valuation is less than one-tenth of 2024 expected revenue.

Common Stock Buyback Plan:

After the filing of our Form 10-Q for the quarter ended March 31, 2024, which is expected to be filed in May 2024, we currently anticipate initiating the buyback of our common stock under the previously approved $50 million buyback plan. This directly reflects my belief in the existing value of our assets, the bright future for the Company and as well as the potential of certain key investments.

The timing and number of shares repurchased, if any, will depend on a variety of factors, including further approval of the Company’s board of directors, available financing as well as the Company’s cash position, the price and trading volume of the Company’s common stock, general business and market conditions, and restrictions on stock repurchases in existing loan agreements, among other items, in each case at the time when the Company may initiate share repurchases pursuant to a trading plan for the repurchases in compliance with the Rule 10b5-1 of the Securities Exchange Act of 1934, as amended. The Company intends to finance the repurchases from several sources, including excess cash flow from operations, as and when available, and proceeds from future borrowing arrangements or financings.

In conclusion, I encourage everyone to spend time conducting in depth due diligence in order to fully appreciate the current value and future potential of Ault Alliance and its assets. My focus, along with every employee at the Company, is on creating long-term stockholder value and properly monetizing our existing asset base.

Warm regards,

Milton “Todd” Ault III

Executive Chairman, Ault Alliance

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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