en.Wedoany.com Reported - Nasdaq-listed Z Squared Inc. announced the acquisition of a majority stake in Paradox Data and its campus in Union County, Arkansas, to drive its transition from cryptocurrency mining to artificial intelligence and high-performance computing (AI/HPC) data centers.

The site, located on the outskirts of El Dorado, Arkansas, spans 10 acres and currently provides 8 megawatts of power, utilizing immersion cooling technology to handle high-density workloads. Z Squared plans to further develop the site, aiming to secure up to 50 megawatts of utility power in the future. The company targets the development of a 170-acre, 150-megawatt behind-the-meter campus, leveraging both grid connections and natural gas power.

The transaction is structured entirely with newly designated Series D convertible preferred stock, involving no cash consideration or debt financing. The stock is valued at $5 million, granting Z Squared a 51% equity stake in Paradox.

Z Squared CEO David Halabu stated that energized power and high-density immersion cooling are the scarcest and most valuable assets in today's AI infrastructure, and this deal secures both, supported by a campus designed for stable, large-scale power. He noted that Paradox is precisely the asset to advance the company's strategy.

Florida-based Z Squared describes itself as a digital infrastructure company, with computing equipment distributed across six sites in North Carolina, South Carolina, and Iowa. Historically focused on mining Dogecoin, Litecoin, and other altcoins, the company is now pivoting to AI and high-performance computing.

Based on recent performance, the company relies on Minting Dome Inc as its cryptocurrency mining hosting service provider, which hosts 9,800 ASIC miners for the company. Minting Dome CEO Michelle Burke previously served as Z Squared's co-CEO, leaving in May after a one-month tenure.

Z Squared merged with biopharmaceutical company Coeptis Therapeutics last year, with Z Squared taking over Coeptis's Nasdaq listing and planning to divest the biopharmaceutical business. The merger was completed in April this year.

CEO Halabu recently stated that the company is "aggressively expanding" into power generation, data center development, and high-performance computing hosting, with energized sites pending acquisition in North Carolina and Arkansas. In May, the company said it aims to reach 100 megawatts of AI-ready capacity across multiple sites within the next 18 months. To raise construction funds, it has entered into a $50 million equity agreement.

The company previously signed a binding letter of intent to acquire Skycore Digital, which has three active sites in North Carolina totaling up to 42 megawatts, with approximately 24 megawatts currently energized. The transaction will be paid with $18 million in Series B convertible preferred stock.

Last year, cryptocurrency mining company Paradox Data formed a strategic partnership with KRAMBU to build an artificial intelligence and blockchain data center campus in Pennsylvania, though specific details were limited.

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