Hyperscale Data Inc. Stock Price, News & Analysis

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.

Hyperscale Data (NYSE: GPUS) has announced the sale of its St. Petersburg development property for $13 million, representing approximately $11.71 per share based on 1.1 million common shares outstanding. The sale aligns with the company's strategy to become a pureplay data center business focused on high-performance computing and AI solutions.

Approximately $11 million from the sale will be held in a segregated account, bringing its total balance to $18.3 million. The company is in discussions with its principal lender regarding a potential cash dividend distribution to holders of common stock and Series C convertible preferred stock from these proceeds.

Hyperscale Data (NYSE: GPUS) issued a stockholder update focusing on its strategic shift to data center operations. The company is transforming its Michigan data center, a 617,000 square foot facility on 34.5 acres, from a current 30MW capacity to potentially 300MW. The company is in discussions with utilities and developers for infrastructure upgrades to support high-performance computing (HPC) and AI solutions.

The development project could cost up to $2 billion at the high end. The company plans to distribute a one-time dividend of Series F Exchangeable Preferred Stock to separate non-core businesses under Ault Capital Group, making Hyperscale Data a pure-play data center operator. The company aims to secure long-term leases with well-capitalized hyperscalers, targeting agreements similar to Core Scientific's recent 12-year, $3.5 billion contract for 200MW.

Ault & Company announces plans to initiate a cash tender offer to purchase up to 111,000 shares (10%) of Hyperscale Data's Class A Common Stock. The offer price will range between $7.50 and $10.00 per share, representing 50% to 100% premiums over the last reported price of $4.98 on December 5, 2024.

The purchase will be conducted through a modified Dutch auction. Ault & Company, along with its affiliates, currently owns approximately 85.7% of Hyperscale Data's outstanding shares. The offer is expected to commence in late December 2024 or early January 2025, subject to board and regulatory approvals.

Hyperscale Data (NYSE American: GPUS) announced that its subsidiary TurnOnGreen has secured $3.9 million in new defense contracts through its power electronics division. The contracts involve producing defense-grade power conversion modules and tactical systems for military vehicles and communications. TurnOnGreen has also secured a contract with an Israel-based defense OEM for armored fighting vehicles and military ambulances. The company is providing custom uninterruptible power solutions for tactical command communications systems globally. Their solutions have been validated by the Israel Defense Forces (IDF) and meet international military standards.

Hyperscale Data (NYSE American: GPUS) reports mining 640 Bitcoin year to date through November 26, 2024. The mining output comprises 380 Bitcoin from their Michigan facility and 260 Bitcoin from machines previously hosted by Core Scientific. The company is currently transitioning from Bitcoin mining to become a pure play artificial intelligence data center business, while maintaining transparency with stockholders during this strategic shift.