Hyperscale Data Chairman Acquires 4.2M Super-Voting Shares, Tightens Control
Milton C. Ault III, Executive Chairman and 10% owner of Hyperscale Data (GPUS), reported multiple acquisitions of derivative securities between October 2024 and December 2024 through Ault & Company.
Rhea-AI Filing Summary
Milton C. Ault III, Executive Chairman and 10% owner of Hyperscale Data (GPUS), reported multiple acquisitions of derivative securities between October 2024 and December 2024 through Ault & Company.
Key transactions include:
- Acquisition of 3,750 Series C Convertible Preferred Stock shares (total value: $3.75M) with conversion price determined by market conditions
- Receipt of 47,845 Series C Warrants with exercise price of $118.3875, exercisable between April 2025 and December 2029
- Acquisition of 4,234,561 Class B Common Stock shares as stock dividend, carrying 10x voting power compared to Class A shares
Post-transactions, Ault & Company holds 50,000 Series C Preferred shares, 422,337 warrants, and over 4.2M Class B shares. All transactions were indirect through Ault & Company, where Milton Ault serves as CEO. Figures reflect adjustment for 1-for-35 reverse stock split executed November 22, 2024.
Positive
- None.
Negative
- Executive Chairman Milton Ault III and Ault & Company acquired significant control through Class B Common Stock (4,234,561 shares) with 10x voting power, potentially reducing other shareholders' voting influence
- Large accumulation of convertible preferred stock (50,000 shares) and warrants (422,337) at $118.3875 indicates potential future dilution risk for existing shareholders
- Complex convertible preferred stock terms with variable conversion prices that could lead to additional dilution if stock price declines below current $1.0721 conversion price
Insider Trade Summary
Grant/Award: 4,288,406 shares
Grant/Award
25 txns
Insider
AULT MILTON C III, Ault & Company, Inc.
Role
Executive Chairman | 10% Owner
| Type | Security | Shares | Price | Value |
|---|---|---|---|---|
| Grant/Award | Series C Convertible Preferred Stock | 1,900 | $1,000.00 | $1.90M |
| Grant/Award | Series C Warrants | 16,049 | $0.00 | $0.00 |
| Grant/Award | Class B Common Stock | 4,234,561 | $0.00 | $0.00 |
| Grant/Award | Series C Convertible Preferred Stock | 500 | $1,000.00 | $500K |
| Grant/Award | Series C Warrants | 4,223 | $0.00 | $0.00 |
| Grant/Award | Series C Convertible Preferred Stock | 50 | $1,000.00 | $50K |
| Grant/Award | Series C Warrants | 422 | $0.00 | $0.00 |
| Grant/Award | Series C Convertible Preferred Stock | 570 | $1,000.00 | $570K |
| Grant/Award | Series C Warrants | 4,815 | $0.00 | $0.00 |
| Grant/Award | Series C Convertible Preferred Stock | 50 | $1,000.00 | $50K |
| Grant/Award | Series C Warrants | 422 | $0.00 | $0.00 |
| Grant/Award | Series C Convertible Preferred Stock | 400 | $1,000.00 | $400K |
| Grant/Award | Series C Warrants | 3,379 | $0.00 | $0.00 |
| Grant/Award | Series C Convertible Preferred Stock | 735 | $1,000.00 | $735K |
| Grant/Award | Series C Warrants | 6,208 | $0.00 | $0.00 |
| Grant/Award | Series C Convertible Preferred Stock | 95 | $1,000.00 | $95K |
| Grant/Award | Series C Warrants | 802 | $0.00 | $0.00 |
| Grant/Award | Series C Convertible Preferred Stock | 100 | $1,000.00 | $100K |
| Grant/Award | Series C Warrants | 845 | $0.00 | $0.00 |
| Grant/Award | Series C Convertible Preferred Stock | 450 | $1,000.00 | $450K |
| Grant/Award | Series C Warrants | 3,801 | $0.00 | $0.00 |
| Grant/Award | Series C Convertible Preferred Stock | 500 | $1,000.00 | $500K |
| Grant/Award | Series C Warrants | 4,223 | $0.00 | $0.00 |
| Grant/Award | Series C Convertible Preferred Stock | 350 | $1,000.00 | $350K |
| Grant/Award | Series C Warrants | 2,956 | $0.00 | $0.00 |
Holdings After Transaction:
Series C Convertible Preferred Stock — 560,585 contracts (Indirect, By Ault & Company, Inc.);
Series C Warrants — 4,735,121 contracts (Indirect, By Ault & Company, Inc.);
Class B Common Stock — 4,234,561 contracts (Indirect, By Ault & Company, Inc.)
Footnotes (7)
- F1. Each share of Series C Convertible Preferred Stock has a stated value of $1,000.00 and is convertible into shares of Common Stock at a conversion price equal to the greater of (i) $0.10 per share and (ii) the lesser of (A) $306.25 or (B) 105% of the volume weighted average price of the Common Stock during the ten trading days immediately prior to the date of conversion (the "Conversion Price"). The Conversion Price is subject to adjustment in the event of an issuance of Common Stock at a price per share lower than the Conversion Price then in effect, as well as upon customary stock splits, stock dividends, combinations or similar events.
- F2. The Series C Convertible Preferred Stock has no expiration date.
- F3. As of June 20, 2025, the Conversion Price was $1.0721 per share, so each share of Series C Convertible Preferred Stock is convertible into approximately 932.75 shares of Common Stock.
- F4. All price and ownership figures have been adjusted for the 1-for-35 reverse stock split on November 22, 2024.
- F5. Milton C. Ault, III, is the Chief Executive Officer of Ault & Company, Inc. ("Ault & Co.") and is deemed to beneficially own the shares held by Ault & Co.
- F6. The Class B Common Stock does not expire.
- F7. Received as stock dividend from Issuer.
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
What is the conversion price of GPUS's Series C Convertible Preferred Stock as of June 2025?
As of June 20, 2025, the conversion price of GPUS's Series C Convertible Preferred Stock was $1.0721 per share, with each preferred share being convertible into approximately 932.75 shares of common stock.
What positions does Milton Ault III hold at GPUS?
Milton Ault III serves as Executive Chairman and Director of GPUS, and is also considered a 10% owner. Additionally, he is the Chief Executive Officer of Ault & Company, Inc., through which he holds indirect beneficial ownership of GPUS securities.
What is the exercise price and expiration date of GPUS's Series C Warrants acquired in these transactions?
The Series C Warrants have an exercise price of $118.3875 per share. The warrants expire five years from their respective issue dates, with expiration dates ranging from October 2029 to December 2029, depending on when each warrant was issued.
AI-generated analysis. How Rhea-AI works. Not financial advice.
