Hyperscale Data Receives $26.6 Million of Cash Related to Litigation Settlement; Cash Receipt Represents a Significant Liquidity Event for the Company

Hyperscale Data (NYSE American: GPUS) received approximately $26.6 million in cash from a resolution of long‑running litigation involving a former subsidiary.

Rhea-AI Summary

Hyperscale Data (NYSE American: GPUS) received approximately $26.6 million in cash from a resolution of long‑running litigation involving a former subsidiary. About $10 million was received in March 2026 and will be fully recognized as revenue for the quarter ended March 31, 2026.

The remaining $16.6 million was received April 1, 2026 and had been designated for distribution to prior ROI stockholders; the company is evaluating accounting treatment and any retained amounts will be reflected as other income.

Positive

• $26.6M cash received from litigation settlement
• $10M to be recognized as Q1 2026 revenue
• Significant liquidity event improving near‑term cash position

Negative

• Settlement terms are confidential, limiting transparency
• $16.6M designated for distribution currently retained pending treatment

Argus Apr 2 session

-7.23% close to close Open Argus

Details

News Market Reaction – GPUS

In the Apr 2 session, GPUS declined 7.23%, reflecting a notable negative market reaction.

Data tracked by StockTitan Argus on the day of publication.

Market Context

The stock moved -7.2% in the session following this news. A negative reaction despite the announced ...

Analysis

The stock moved -7.2% in the session following this news. A negative reaction despite the announced $26.6 million cash receipt could fit a pattern where the market focuses on broader capital structure and financing risks. The settlement adds liquidity and roughly $10 million of Q1 revenue, but investors may remain cautious given registered resale capacity linked to 43,011,836 shares and $12,768,000 of convertible notes, alongside prior proxy proposals expanding authorized shares, which together may temper enthusiasm.

Key Figures

Litigation cash received: $26.6 million Proceeds in March 2026: $10 million Funds received by ROI: $16.6 million +3 more

Litigation cash received

$26.6 million

Cash related to settlement with former subsidiary

Proceeds in March 2026

$10 million

Attributed to Ault Lending; recognized as Q1 2026 revenue

Funds received by ROI

$16.6 million

Portion of proceeds designated for ROI stockholders

Record date for ROI distribution

November 15, 2022

ROI stockholders of record for designated distribution

Q1 2026 period end

March 31, 2026

Quarter in which ~ $10M will be recognized as revenue

Settlement receipt date

April 1, 2026

Date remaining proceeds were received by ROI

Historical Context

5 past events · Latest: Mar 31

5 events

1. Mar 31

   Treasury holdings update

   24h Move

   +7.4%

   Cash and Bitcoin holdings reported at 156.87% of market capitalization.

2. Mar 30

   Campus acquisition

   24h Move

   +4.0%

   Agreement to acquire 48.5 acres to expand Michigan AI data center campus.

3. Mar 24

   Bitcoin treasury update

   24h Move

   -7.2%

   Reported 627.8970 BTC and cash plus restricted cash of about $42.5 million.

4. Mar 20

   Preferred dividends

   24h Move

   +4.3%

   Declared monthly cash dividends on 13.00% Series D and 10.00% Series E preferred.

5. Mar 19

   Robotics launch

   24h Move

   -4.1%

   Launched Omnipresent Robotics with expected U.S. commercial deployment in June 2026.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

litigation settlement, liquidity event, other income

3 terms

litigation settlement regulatory

"in connection with the resolution of previously disclosed litigation involving a former subsidiary"

A litigation settlement is an agreement in which parties resolve a legal dispute without going to a full trial, often involving a payment, changes in behavior, or other terms both sides accept. For investors, settlements matter because they can reduce the uncertainty, cost, and time associated with lawsuits—much like paying to avoid a long, unpredictable courtroom battle—and can affect a company’s cash balance, future liabilities, reputation, and stock value.

liquidity event financial

"This cash receipt represents a meaningful liquidity event for Hyperscale Data"

A liquidity event is a transaction that converts ownership in a privately held or illiquid asset into cash or a marketable security, such as a sale, merger, public stock offering, or buyout. It matters to investors because it provides a clear way to realize returns or recover capital—think of it as turning a house into a cash sale—so the timing, price and structure of the event determine how much money stakeholders actually receive.

other income financial

"Ultimately, any amounts retained by ROI will be reflected as other income."

Other income is money a company earns outside its core business—examples include interest from investments, gains from selling assets, rental receipts, or foreign exchange gains. For investors it signals whether profits come from the company’s main operations or from occasional side sources; likened to a restaurant earning extra cash by renting out space, it helps assess whether earnings are sustainable or one-off boosts.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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LAS VEGAS, April 2, 2026 /PRNewswire/ -- Hyperscale Data, Inc. (NYSE American: GPUS), an artificial intelligence ("AI") data center company anchored by Bitcoin ("Hyperscale Data" or the "Company"), today announced that it has received approximately $26.6 million in cash in connection with the resolution of previously disclosed litigation involving a former subsidiary. The proceeds were received by the Company's subsidiaries, Ault Lending, LLC ("Ault Lending") and RiskOn International, Inc. ("ROI").

The proceeds relate to a litigation matter that had been ongoing for several years and was resolved pursuant to a confidential settlement agreement, the terms of which remain undisclosed.

Approximately $10 million of the proceeds were received during March 2026 and reflects amounts attributable to legacy ownership interests held by the Company's subsidiary, Ault Lending, which will be fully recognized as revenue during the first quarter ending March 31, 2026. The remaining proceeds were received on April 1, 2026, and were previously designated for distribution to ROI stockholders of record as of November 15, 2022. Due to administrative and identification considerations associated with certain ROI stockholders, approximately $16.6 million of these funds has been received by ROI. The Company is evaluating the appropriate treatment of such amounts. Ultimately, any amounts retained by ROI will be reflected as other income.

"This cash receipt represents a meaningful liquidity event for Hyperscale Data and reflects the culmination of a long-standing matter," said William B. Horne, Chief Executive Officer of Hyperscale Data. "We remain focused on executing our strategy as a next-generation AI data center platform while maintaining disciplined capital allocation."

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 AI ecosystems and other industries. Hyperscale Data's other wholly owned subsidiary, 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 second quarter of 2027. 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, 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 shareholders 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

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

How much cash did Hyperscale Data (GPUS) receive from the litigation settlement on April 2, 2026?

The company received approximately $26.6 million in cash from the litigation resolution. According to the company, $10 million arrived in March 2026 and $16.6 million was received on April 1, 2026.

Will Hyperscale Data (GPUS) recognize any of the settlement proceeds as revenue for Q1 2026?

Yes, about $10 million will be fully recognized as revenue for the quarter ended March 31, 2026. According to the company, those amounts are attributable to legacy ownership interests in Ault Lending.

What is the status of the $16.6 million received by ROI and its impact on GPUS shareholders?

Approximately $16.6 million was received by ROI and was previously designated for distribution to ROI stockholders. According to the company, it is evaluating appropriate accounting treatment and any retained amounts will be shown as other income.

Does the April 2026 cash receipt materially change Hyperscale Data's liquidity position?

The company describes the payment as a meaningful liquidity event that improves near‑term cash availability. According to the company, the funds result from a long‑standing matter resolved by confidential settlement.

Are the settlement terms disclosed and will there be further shareholder distributions by GPUS?

No, the settlement agreement terms remain confidential and undisclosed. According to the company, distributions were previously designated to ROI stockholders of record as of November 15, 2022, but treatment of retained funds is under evaluation.