Hello BGS members and spectators,
Current $4.88/share
ZSQR Has Provided up to 90% in Gains Since my First Report
Could ZSQR return to $20 area?
Initial report below.
Potential Breakout
Z Squared Inc. (NASDAQ: ZSQR)
Current $3.01 (at initial report 09/24/2026)
Outstanding shares 53m
Multiple Upcoming Catalysts
Why Z Squared’s AI-infrastructure story is gaining momentum
Z Squared Inc. (Nasdaq: ZSQR) is building its AI-infrastructure strategy around what management sees as the industry’s most constrained resource: energized power. Rather than waiting years for new utility connections, the company aims to acquire operating, grid-connected properties and convert them into AI-ready data-center capacity.
The clearest sign of execution came when Z Squared completed its acquisition of Paradox Data and the Union County Campus in El Dorado, Arkansas. The transaction gave Z Squared its first owned, energized campus, with service available for up to approximately 8 MW and a longer-term development pathway targeting more than 150 MW. Importantly, the acquisition closed through stock consideration, with no cash paid at closing and no debt financing.
This followed the definitive agreement to acquire 100% of Paradox Data. The deal was structured to align additional consideration with execution: up to $20 million in convertible preferred stock becomes payable only if defined development milestones are achieved, including initial AI-compute energization and higher capacity thresholds. That structure gives management incentives to turn the property’s potential into operating infrastructure.
Z Squared also has a potentially attractive capital-light business model. Management says it intends to operate more like a triple-net infrastructure landlord than a GPU owner, leasing tenants the property, building and access to power while customers provide and operate their own computing equipment. If executed successfully, this could give Z Squared exposure to AI demand without requiring it to fund rapidly depreciating processors.
CEO David Halabu’s recent podcast appearances sharpened the investment thesis: locate scarce power, provide an AI tenant with a usable facility, and expand the campus as demand materializes. Management evaluates prospective sites based on power availability, time to power, price, fiber, water and local-government support – a practical framework focused on infrastructure that tenants need before they can deploy compute.
The bullish case for ZSQR is therefore an execution story: the company has progressed from announcing a power-first strategy, to signing a definitive acquisition agreement, to closing on an energized campus. Its next potential catalysts are securing a paying tenant, converting existing power into AI-ready capacity and expanding beyond the site’s current 8 MW arrangement.
I will be back with more on ZSQR soon.
Happy trading,
Your friend,
Steve Macalbry
Senior editor at BGS
Plan your trade, trade your plan.