Hyperscale Data Inc. Stock Price, News & Analysis

Hyperscale Data (NYSE American: GPUS) has announced two dividend declarations and one deferral. The Board declared a monthly cash dividend of $0.2708333 per share for its 13.00% Series D Cumulative Redeemable Perpetual Preferred Stock, payable on February 10, 2025, to shareholders of record as of January 31, 2025.

Additionally, the company declared a prorated dividend of $0.15278 per share for its 10.00% Series E Cumulative Redeemable Perpetual Preferred Stock, representing the previously deferred dividend for December 2024. However, the Board has elected to defer the January 2025 monthly dividend for the Series E Preferred Stock. The company notes that it can defer up to 12 consecutive monthly dividend payments on Series E Preferred Stock without being considered missed, as these are cumulative dividends that accrue for future payment.

Ault & Company has increased its controlling stake in Hyperscale Data (NYSE: GPUS) to 91.7% of beneficial ownership as of January 3, 2025. The stake consists of 13,900,765 shares of Class A Common stock, including direct ownership, convertible shares, and warrants.

The increased ownership includes Class B Common stock received as dividends and recent purchases of Preferred Shares. Hyperscale Data is transitioning to become solely an owner and operator of data centers supporting high-performance computing services.

The stake comprises 8,249 shares of Class A Common, 4,234,561 shares convertible from Class B Common, 9,140,771 shares from Series C Preferred conversion, 88,494 shares from Series G Preferred conversion, and 428,690 shares from outstanding warrants.

Hyperscale Data's subsidiary, Alliance Cloud Services, has secured a three-year agreement with a Silicon Valley cloud services provider for its Michigan Data Center. The deal includes seven server cabinets initially, with the option to add five more. Each cabinet will utilize approximately 40 kilowatts of power, with cooling systems capable of handling double that capacity.

While this implementation uses only a small portion of the 100,000 sq.ft. facility and its 28 MW power capacity, it demonstrates the high-density power and cooling solutions needed for modern computing. The company aims to expand its data center operations to 300+ MW of power over the next four years as part of its transition to becoming a pure-play data center company.

Ault & Company has announced the abandonment of its planned cash tender offer to purchase up to 111,000 shares of Hyperscale Data's Class A Common Stock, which was initially proposed at a price range of $7.50 to $10.00 per share. Instead, the company will pursue a new securities purchase agreement that grants them the right to acquire up to $25 million in Hyperscale Data's Series G Convertible Preferred Stock.

The company maintains that Hyperscale Data's current stock price is below its long-term intrinsic value and views the preferred shares investment as a demonstration of their continued support. Ault & Company, along with its affiliates, currently owns approximately 91.7% of Hyperscale Data's outstanding common stock, primarily through Series C Convertible Preferred Stock and warrants.

Hyperscale Data (NYSE: GPUS) has completed a $50 million preferred equity investment through the issuance of 50,000 Series C Convertible Preferred Stock shares to Ault & Company. The investment, made over the past 13 months, is part of a larger $75 million offering, with $25 million still pending completion.

The company is transforming into a pure AI data center business by spinning out all non-data center and non-Bitcoin mining assets. The funds will be used to expand the MI data center, implement infrastructure upgrades for high-performance computing services powering AI solutions, repay outstanding debt, and provide working capital.

Hyperscale Data (NYSE American: GPUS) has received a notice of noncompliance from NYSE American due to insufficient stockholders' equity. The company reported stockholders' equity of approximately $2.2 million, falling below the required minimum of $6 million under Section 1003(a)(ii) and (iii) of the NYSE American Company Guide. This notification comes after reporting losses in five of its most recent fiscal years through December 2023.

The company must submit a compliance plan by January 17, 2025, demonstrating how it will regain compliance by June 18, 2026. During this period, GPUS stock will continue trading on NYSE American, subject to plan acceptance and ongoing compliance reviews.

Hyperscale Data (NYSE: GPUS) has entered into a Securities Purchase Agreement for up to $25 million financing from Ault & Company (A&C), a related party. The agreement involves issuing Series G Convertible Preferred Stock with a stated value of $1,000 per share, convertible into common stock at the greater of $0.10 per share or a 5% premium to the closing price. The preferred stock pays a 9.5% annual dividend and includes warrants for approximately 4.25 million common shares at $5.92 per share.

The financing proceeds will fund MI data center expansion for AI computing infrastructure, debt repayment, and working capital. The agreement allows for multiple closings through December 31, 2025, subject to regulatory and stockholder approval, as well as A&C securing financing.

Hyperscale Data (NYSE American: GPUS) announced its Board has declared a monthly cash dividend of $0.2708333 per share for its 13.00% Series D Cumulative Redeemable Perpetual Preferred Stock, with a record date of December 31, 2024, and payment date of January 10, 2025. This marks the 30th consecutive dividend payment for Series D since June 2022.

The company has elected to defer the monthly cash dividend on its 10.00% Series E Cumulative Redeemable Perpetual Preferred Stock for December 2024. This deferral falls under the 'Permitted Deferral' provision, allowing up to 12 consecutive monthly dividend deferrals. The company anticipates paying the deferred dividend sometime in 2025.

Hyperscale Data (NYSE American: GPUS) reported that its subsidiary Alliance Cloud Services (ACS) mined approximately 20 Bitcoin in November 2024, achieving an annualized run rate of approximately $26 million in gross Bitcoin mining revenue, based on a Bitcoin price of $106,000.

The company highlighted that Bitcoin's 140% appreciation in 2024 has significantly outpaced the 51% increase in mining difficulty, leading to improved margins. The current mining rate represents more than three times the company's market capitalization on an annualized basis.