In a recent update, Ault Alliance, Inc., a Delaware-based company specializing in electronic components, has announced a significant rebranding move. Effective September 10, 2024, the company will operate under the new name "Hyperscale Data, Inc." This change was formalized through an amendment to the company's Certificate of Incorporation filed with the State of Delaware on September 6, 2024. The rebranding initiative does not require stockholder approval under Section 242 of the Delaware General Corporation Law.
Accompanying the name change, the company's common stock and Series D Cumulative Redeemable Perpetual Preferred Stock will also see a change in their trading symbols on the NYSE American.
Starting from the market's opening on September 10, 2024, the common stock will trade under the new ticker symbol "GPUS" and the preferred stock under "GPUS PRD." These changes are expected to enhance the company's corporate identity and align with its strategic direction.
Despite the rebranding, existing stock certificates bearing the old company name will remain valid. New stock certificates with the updated corporate name will be issued as the old ones are surrendered to the company's transfer agent for exchange or transfer.
In other recent news, Ault Alliance, Inc., now rebranded as Hyperscale Data, Inc., has made significant strides in its operations. The company reported a revenue of $76.3 million for the first half of 2024 and total assets amounting to $271 million. The company's strategic shift towards data center operations has led to the rebranding and the change of its ticker symbol to "GPUS." Hyperscale Data plans to expand its Michigan-based data center's capacity tenfold, contingent upon receiving state regulatory approvals and securing adequate funding.
In line with these developments, shareholders have approved the conversion of a 10% OID Convertible Promissory Note into common stock, a move that could potentially influence the company's capital structure. Analysts from Goldman Sachs (NYSE:GS) suggest that this strategic reorganization aligns with industry trends, as AI could drive a 160% surge in data center power demand.
In addition, Hyperscale Data sold 300 shares of Series C convertible preferred stock and accompanying warrants for a total of $300,000 as part of its capital-raising efforts. The company also plans to issue special dividends of stock in non-AI data center subsidiaries to its stockholders, subject to regulatory requirements and approvals.
InvestingPro Insights
In light of Ault Alliance, Inc.'s rebranding to Hyperscale Data, Inc., a look at the company's financial health and market performance provides additional context for investors. According to InvestingPro data, Ault Alliance has a market capitalization of $7.95 million and is trading at a low Price / Book multiple of 0.3, which could indicate that the company’s assets are potentially undervalued. Despite a revenue growth of 0.56% in the last twelve months as of Q2 2024, the company has faced a significant quarterly revenue decline of 40.09% in Q2 2024. This suggests a challenging financial period for the company.
InvestingPro Tips highlight that Ault Alliance operates with a significant debt burden and may have trouble making interest payments on its debt. Additionally, the company has been quickly burning through cash, which is a concern for its financial stability. These factors are crucial for investors to consider as they assess the implications of the rebranding and the company's future prospects.
For those looking to delve deeper, InvestingPro offers additional tips on Ault Alliance, providing a comprehensive analysis of the company's financial status and market performance. Visit InvestingPro for a full suite of tips and metrics that could guide investment decisions.
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