Hyperscale Data Announces Investments Made by Ault & Company Increased to $55 Million

Rhea-AI Summary

Hyperscale Data (NYSE American: GPUS) has secured an additional $4 million investment from Ault & Company, bringing their total investment to $55 million through preferred stock transactions. The investment was made through Series H convertible preferred stock, following a securities purchase agreement dated July 31, 2025.

Notably, Ault & Company maintains the right to invest up to an additional $96 million in Series H Preferred Stock through December 31, 2026. The company anticipates exercising this full investment right, demonstrating strong confidence in Hyperscale Data's AI data center expansion strategy, particularly its Michigan campus development.

Positive

• Total investment from Ault & Company reached $55 million, showing strong investor confidence
• Additional investment potential of $96 million through December 2026
• Ault & Company anticipates exercising the full $96 million investment right
• Strategic expansion of AI data center business with Michigan campus development

Negative

• Heavy reliance on a single investor for funding
• Dilution potential from convertible preferred stock issuance

Insights

Investment Banking Analyst

Ault & Company's $55M investment with potential $96M more strengthens Hyperscale Data's AI data center expansion capabilities.

The additional $4 million investment from Ault & Company brings its total commitment to $55 million through preferred stock purchases, with rights to invest $96 million more through December 2026. This transaction structure using Series H convertible preferred stock provides Hyperscale Data with significant capital while giving Ault & Company potential equity upside through conversion rights.

What's notable here is the investment's staged approach - Ault has already demonstrated substantial financial commitment but structured additional capital infusion through multiple future tranches. This provides Hyperscale Data with financial runway while allowing Ault to manage its exposure based on milestone achievements.

The strategic focus on AI data center expansion, particularly at their Michigan campus, aligns with high-growth market opportunities in computational infrastructure. The AI data center market is experiencing rapid growth as demand for high-performance computing continues to surge. This capital injection should accelerate Hyperscale's ability to capture market share in this competitive space.

It's worth highlighting the close relationship between the companies - Milton Ault serves as both CEO of Ault & Company and Executive Chairman of Hyperscale Data. This alignment of leadership likely facilitates the significant capital commitment but also creates potential governance considerations for minority shareholders.

Ault & Company Has the Right to Invest up to an Additional $96 Million to Accelerate Artificial Intelligence Data Center Growth

LAS VEGAS, Sept. 3, 2025 /PRNewswire/ -- Hyperscale Data, Inc. (NYSE American: GPUS), a diversified holding company ("Hyperscale Data" or the "Company"), today announced that it has received an additional investment of $4 million from Ault & Company, Inc. ("Ault & Company"), bringing Ault & Company's total investment in the Company to $55 million through a series of preferred stock transactions. The latest investment was the purchase by Ault & Company of the first tranche of shares of the Company's Series H convertible preferred stock ("Series H Preferred Stock"), pursuant to the securities purchase agreement dated July 31, 2025.

Ault & Company has the right to purchase up to an additional $96 million of Series H Preferred Stock through December 31, 2026, continuing its role as a major supporter of the Company and its long-term plans in the artificial intelligence ("AI") data center and digital asset markets.

"The increase of Ault & Company's investment in Hyperscale Data is an indication of its belief in the Company's team and growth strategy," stated Milton "Todd" Ault III, Chief Executive Officer of Ault & Company and the Executive Chairman of Hyperscale Data. "Ault & Company believes in the transformational power of Hyperscale Data's expansion of its AI data center business and is committed to supporting the Company's growth strategy as it builds out its Michigan campus. Ault & Company currently anticipates that it will elect to exercise its right to make the full $96 million of additional investment, on top of the $55 million already invested, which is a strong vote of confidence in the future of the Company."

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, Hyperscale Data owns and operates a data center at which it mines digital assets and offers colocation and hosting services for the emerging AI ecosystems and other industries. Hyperscale Data's other wholly owned subsidiary, Ault Capital Group ("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 will be an owner and operator of data centers to support high-performance computing services, as well as a holder of 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 and hotel operations. In addition, ACG is actively engaged in providing private credit and structured finance through a licensed lending subsidiary. Hyperscale Data's headquarters are located at 11411 Southern Highlands Parkway, Suite 190, Las Vegas, NV 89141.

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 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 hyperscaledata.com.

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SOURCE Hyperscale Data Inc.

FAQ

How much has Ault & Company invested in Hyperscale Data (GPUS)?

Ault & Company has invested a total of $55 million in Hyperscale Data through preferred stock transactions, with the latest investment being $4 million.

What is the additional investment potential from Ault & Company in GPUS?

Ault & Company has the right to invest up to an additional $96 million in Series H Preferred Stock through December 31, 2026.

What is the purpose of Hyperscale Data's (GPUS) recent funding?

The funding is intended to support Hyperscale Data's growth strategy in AI data center business, particularly the expansion of its Michigan campus.

Who is the Executive Chairman of Hyperscale Data (GPUS)?

Milton 'Todd' Ault III serves as both the Executive Chairman of Hyperscale Data and the Chief Executive Officer of Ault & Company.

When does Ault & Company's investment right in GPUS expire?

Ault & Company's right to purchase additional Series H Preferred Stock expires on December 31, 2026.