Hyperscale Data Announces "At-the-Market" Offering of Common Stock
Rhea-AI Summary
Hyperscale Data (NYSE American: GPUS) has established an "at-the-market" equity offering program to sell up to $125 million worth of common stock through Wilson-Davis & Co., Inc. as the sales agent. The shares will be offered through ordinary brokers' transactions on the NYSE American at prevailing market prices.
The company plans to use the majority of the net proceeds to acquire Bitcoin and develop its Michigan data facility. A smaller portion will be allocated to acquiring XRP and for working capital and general corporate purposes, including potential debt repayment or stock repurchases. The offering is being made pursuant to an effective shelf registration statement filed with the SEC.
Positive
- Potential to raise up to $125 million in flexible funding
- Strategic investment in Bitcoin and data facility expansion
- Diversification into multiple digital assets (Bitcoin and XRP)
- Flexibility in timing and amount of shares sold through ATM offering
Negative
- Potential dilution for existing shareholders
- Uncertain timing and final amount of capital raised
- Broad management discretion in use of proceeds
- Significant exposure to volatile cryptocurrency markets
News Market Reaction
On the day this news was published, GPUS declined 22.42%, reflecting a significant negative market reaction. Argus tracked a trough of -11.2% from its starting point during tracking. Our momentum scanner triggered 6 alerts that day, indicating moderate trading interest and price volatility. This price movement removed approximately $5M from the company's valuation, bringing the market cap to $17M at that time.
Data tracked by StockTitan Argus on the day of publication.
Pursuant to a sales agreement with the Agent, sales of shares of the Company's common stock may be made in transactions that are deemed to be "at-the-market" offerings, including sales made by means of ordinary brokers' transactions on the NYSE American or otherwise at market prices prevailing at the time of sale or as agreed to with the Agent.
The Company intends to use a majority of the net proceeds from this offering, if any, to acquire Bitcoin and to further develop its
The shares of common stock described above are being offered pursuant to a shelf registration statement (File No. 333-288778), which became effective on August 28, 2025. Such shares of common stock may be offered only by means of a prospectus, including a prospectus supplement, forming a part of the effective registration statement. Before making an investment in these securities, potential investors should read the prospectus supplement and the accompanying prospectus for more complete information about the Company and the Offering. Potential investors may obtain these documents for free by visiting EDGAR on the
This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities, in any state or other jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or other jurisdiction.
For more information on Hyperscale Data and its subsidiaries, Hyperscale Data recommends that stockholders, investors and any other interested parties read Hyperscale Data's public filings and press releases available under the Investor Relations section at hyperscaledata.com or available at www.sec.gov.
About Hyperscale Data, Inc.
Through its wholly owned subsidiary Sentinum, Inc., Hyperscale Data owns and operates a data center at which it mines digital assets and offers colocation and hosting services for the emerging artificial intelligence ("AI") ecosystems and other industries. Hyperscale Data's other wholly owned subsidiary, Ault Capital Group, Inc. ("ACG"), is a diversified holding company pursuing growth by acquiring undervalued businesses and disruptive technologies with a global impact.
Hyperscale Data currently expects the divestiture of ACG (the "Divestiture") to occur in the first quarter of 2026. Upon the occurrence of the Divestiture, the Company would be an owner and operator of data centers to support high-performance computing services, as well as a holder of the digital assets. Until the Divestiture occurs, the Company will continue to provide, through ACG and its wholly and majority-owned subsidiaries and strategic investments, mission-critical products that support a diverse range of industries, including an AI software platform, social gaming platform, equipment rental services, defense/aerospace, industrial, automotive, medical/biopharma and hotel operations. In addition, ACG is actively engaged in private credit and structured finance through a licensed lending subsidiary. Hyperscale Data's headquarters are located at 11411 Southern Highlands Parkway, Suite 190,
On December 23, 2024, the Company issued one million (1,000,000) shares of a newly designated Series F Exchangeable Preferred Stock (the "Series F Preferred Stock") to all common stockholders and holders of the Series C Preferred Stock on an as-converted basis. The Divestiture will occur through the voluntary exchange of the Series F Preferred Stock for shares of Class A Common Stock and Class B Common Stock of ACG (collectively, the "ACG Shares"). The Company reminds its stockholders that only those holders of the Series F Preferred Stock who agree to surrender such shares, and do not properly withdraw such surrender, in the exchange offer through which the Divestiture will occur, will be entitled to receive the ACG Shares and consequently be stockholders of ACG upon the occurrence of the Divestiture.
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
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SOURCE Hyperscale Data Inc.
FAQ
What is the size of Hyperscale Data's (GPUS) at-the-market offering?
How will Hyperscale Data (GPUS) use the proceeds from the ATM offering?
When did Hyperscale Data's (GPUS) shelf registration statement become effective?
Who is the sales agent for Hyperscale Data's (GPUS) ATM offering?
What impact will the ATM offering have on GPUS shareholders?
