LAS VEGAS, Dec. 26, 2024 (GLOBE NEWSWIRE) -- Hyperscale Data, Inc. (NYSE American: GPUS), a diversified holding company ("Hyperscale Data” or the "Company”), today announced the completion of a $50 million preferred equity investment, whereby the Company sold that dollar amount through the issuance to Ault & Company, Inc. ("Ault and Company”) of 50,000 shares of Series C Convertible Preferred Stock (the "Series C Shares”). Ault & Company has invested $50 million through multiple closings over the past thirteen (13) months. This strategic influx of capital has enabled Hyperscale Data to accelerate its growth trajectory, enhance its technological offerings, and execute its business expansion plans more effectively, with a focus on becoming a pure AI data center company. The Company would like to remind its stockholders that on March 25, 2024, the Company and Ault and Company agreed to raise the aggregate offering of Series C Shares from $50 million to $75 million. This offering is continuing apace, but the Company cannot assure you when Ault and Company will complete the remaining purchases of $25 million in Series C Shares, if at all.
In addition to this significant investment, Hyperscale Data is strategically spinning out all of its non-data center and non-Bitcoin mining assets. This move is aimed at refining the Company's core focus and reinforcing its commitment to leading the AI-driven data center industry.
"The $50 million investment was critical for our transformation into a pure AI data center company,” said Will Horne, CEO of Hyperscale Data. "This investment has propelled, and could continue to propel, our efforts to innovate and expand our capabilities at a significant pace, ultimately allowing us to serve our customers' needs with even greater agility and efficiency.”
The substantial infusion of capital from Ault & Company underscores the confidence and trust placed in Hyperscale Data's mission to redefine the digital landscape with cutting-edge solutions. This investment marks a significant milestone in Hyperscale Data's journey, supporting its commitment to deliver unparalleled services and products to its growing client base.
"We're excited to partner with Hyperscale Data, a company positioning itself at the forefront of the data center industry,” said Milton "Todd” Ault III, CEO of Ault & Company. "We recognize the enormous potential in leveraging Hyperscale Data's innovative technologies and are proud to support its vision as they transition into a pure play data center business.”
The funds received from this investment, along with the previously announced additional $25 million investment, will be used for the expansion of the MI data center to implement infrastructure upgrades necessary to support the growing demands of high-performance computing services powering artificial intelligence solutions, repayment of outstanding indebtedness and general working capital purposes.
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.
Hyperscale Data is transitioning from a diversified holding company pursuing growth by acquiring undervalued businesses and disruptive technologies with a global impact to becoming solely an owner and operator of data centers to support high performance computing services. Through its wholly and majority-owned subsidiaries and strategic investments, Hyperscale Data owns and operates a data center at which it mines digital assets and offers colocation and hosting services for the emerging artificial intelligence ecosystems and other industries. It also provides, through its wholly owned subsidiary, Ault Capital Group, Inc., mission-critical products that support a diverse range of industries, including an artificial intelligence software platform, social gaming platform, equipment rental services, defense/aerospace, industrial, automotive, medical/biopharma and hotel operations. In addition, Hyperscale Data 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 240, Las Vegas, NV 89141.
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 www.hyperscaledata.com.
Hyperscale Data Investor Contact:
[email protected] or 1-888-753-2235
