Hyperscale Data, Inc., a Delaware-based manufacturer of electronic components, has entered into a material definitive agreement with an affiliate, Ault & Company, Inc., involving the sale of equity securities, according to a filing with the Securities and Exchange Commission filing shows (SEC) today.

The transaction, which took place on Monday, included the sale of 495 shares of Series G convertible preferred stock and corresponding warrants to purchase 83,643 shares of Hyperscale Data common stock.

The purchase price for this transaction was set at $495,000. This is the first purchase under an agreement that could allow Ault & Company to invest up to $25 million in Hyperscale Data through the acquisition of Series G convertible preferred stock and Series G warrants.

Ault & Company is a subsidiary of Hyperscale Data, and the terms of the agreement were previously detailed in SEC filings dated December 23, 2024, as amended on January 3, 2025 and today. The securities were sold to Ault & Company in reliance on an exemption from registration under Section 4(a)(2) of the Securities Act of 1933.

The Series G Convertible Preferred Stock and Series G Warrants provide Ault & Company with the opportunity to increase its ownership interest in Hyperscale Data. The preferred shares are convertible, meaning they can be converted into common shares under certain conditions, while the warrants give the holder the right to purchase additional shares at a predetermined price.

Hyperscale Data, which trades on NYSE American under the ticker symbol GPUS, has seen its share structure evolve with recent transactions. The stock has shown significant volatility with a beta of 3.38 and remains well below its 52-week high of $76.04 despite a recent increase of 11.67% over the past week.

The Company also lists its 13.00% Series D Cumulative Redeemable Perpetual Preferred Stock on the same exchange under the ticker symbol GPUS PRD. InvestingPro’s analysis suggests the stock may currently be undervalued based on the company’s proprietary fair value model.

The Company’s business address is in Las Vegas, Nevada, and the Company operates under the SIC code 3679 for Electronic Components, NEC. With a worrying current ratio of 0.23 and an overall Financial Health Score rated as WEAK by InvestingPro, the company is facing significant financial challenges. Hyperscale Data has undergone several name changes in the past, previously known as Ault Alliance, Inc., BitNile Holdings, Inc. and Ault Global Holdings, Inc., with the most recent change occurring on January 3, 2023.

This news is based on a press release and informs investors about the latest developments in Hyperscale Data’s financial activities. The Company’s headquarters are located at 11411 Southern Highlands Parkway, Suite 240, Las Vegas, NV 89141.

In other recent news, Hyperscale Data, Inc. has made significant financial progress by raising millions through the sale of Series C convertible preferred stock and related warrants to its subsidiary Ault & Company, Inc. The company has secured a total of $48.1 million. with the potential to reach up to $75 million.

In addition, Hyperscale Data has entered into a forbearance agreement with respect to a $5.39 million convertible promissory note, managing significant indebtedness of $127.62 million.

Additionally, Hyperscale Data conducted a reverse stock split, consolidating all 35 stocks into a single one. The company also sold a property in St. Petersburg, Florida, for $13.2 million.

In addition to these recent developments, Hyperscale Data is focused on improving its data center operations, particularly its artificial intelligence (AI) data center in Michigan. The company plans to increase the plant’s capacity from approximately 30 megawatts to 300 megawatts, subject to necessary regulatory approvals and financing. Finally, Hyperscale Data shareholders approved the conversion of a 10% OID convertible note into common stock.

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