Hyperscale Data Insider Milton Ault III Signals Confidence With Major Stock Rights Purchase
Filing Impact
Filing Sentiment
Form Type
4
Rhea-AI Filing Summary
Milton C. Ault III, Executive Chairman and 10% owner of Hyperscale Data (GPUS), reported multiple acquisitions of derivative securities through Ault & Company in early 2025:
- January 3: Acquired 495 Series G Convertible Preferred shares ($1,000/share) and 83,643 Series G Warrants
- January 6: Added 365 Preferred shares and 61,676 Warrants
- April 10: Purchased 100 more Preferred shares and 16,898 Warrants
The Series G Preferred shares are convertible to common stock at the greater of $0.10 or 105% of 10-day VWAP, capped at $6.74. As of June 20, 2025, conversion price was $1.0721, making each preferred share convertible to ~932.75 common shares. The warrants have a $5.918 exercise price and 5-year terms. All securities are held indirectly through Ault & Company, where Ault serves as CEO.
Positive
- Executive Chairman Milton Ault III and Ault & Company acquired $960,000 worth of Series G Convertible Preferred Stock across multiple transactions, demonstrating insider confidence
- The acquisitions came with significant warrant coverage (162,217 warrants) at $5.918 exercise price, indicating potential upside expectations
Negative
- The convertible preferred stock has a floating conversion price mechanism that could lead to potential dilution if the stock price declines
- The multiple tranches of convertible securities and warrants could create selling pressure if converted
Insider Trade Summary
6 transactions reported
Mixed
6 txns
Insider
AULT MILTON C III, Ault & Company, Inc.
Role
Executive Chairman | 10% Owner
| Type | Security | Shares | Price | Value |
|---|---|---|---|---|
| Grant/Award | Series G Convertible Preferred Stock | 100 | $1,000.00 | $100K |
| Grant/Award | Series G Warrants | 16,898 | $0.00 | -- |
| Grant/Award | Series G Convertible Preferred Stock | 365 | $1,000.00 | $365K |
| Grant/Award | Series G Warrants | 61,676 | $0.00 | -- |
| Grant/Award | Series G Convertible Preferred Stock | 495 | $1,000.00 | $495K |
| Grant/Award | Series G Warrants | 83,643 | $0.00 | -- |
Holdings After Transaction:
Series G Convertible Preferred Stock — 960 shares (Indirect, By Ault & Company, Inc.);
Series G Warrants — 162,217 shares (Indirect, By Ault & Company, Inc.)
Footnotes (1)
- Each share of Series G 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) $6.74 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. The Series G Convertible Preferred Stock has no expiration date. As of June 20, 2025, the Conversion Price was $1.0721 per share, so each share of Series G Convertible Preferred Stock is convertible into approximately 932.75 shares of Common Stock. 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.
FAQ
What insider transactions did Milton Ault III report for GPUS in early 2025?
Milton Ault III, through Ault & Company, Inc., acquired several tranches of Series G Convertible Preferred Stock and Warrants: 495 shares of preferred stock and 83,643 warrants on January 3, 2025, 365 shares of preferred stock and 61,676 warrants on January 6, 2025, and 100 shares of preferred stock and 16,898 warrants on April 10, 2025.
What is Milton Ault III's role at GPUS?
Milton Ault III serves multiple roles at GPUS: he is a Director, Executive Chairman, and a 10% Owner of the company. He exercises control through Ault & Company, Inc., where he serves as Chief Executive Officer.
What is the conversion price of GPUS's Series G Convertible Preferred Stock?
The conversion price is the greater of $0.10 per share or the lesser of $6.74 or 105% of the 10-day VWAP prior to conversion. As of June 20, 2025, the conversion price was $1.0721 per share, making each preferred share convertible into approximately 932.75 shares of common stock.
When do GPUS's Series G Warrants expire?
The Series G Warrants reported in this Form 4 have a 5-year term. The warrants issued on January 3, 2025, expire on January 3, 2030; those issued on January 6, 2025, expire on January 6, 2030; and those issued on April 10, 2025, expire on April 10, 2030. The exercise price for these warrants is $5.918.