Milton C. Ault III, the Executive Chairman of Hyperscale Data, Inc. (NASDAQ:GPUS), recently acquired additional shares of the company. According to a recent SEC filing, Ault purchased 200 shares of common stock at a price of $7.255 per share, totaling approximately $1,451. The purchase comes as the stock trades at $6.87, down over 90% year-to-date, with a current market capitalization of just $7.7 million.
Following this transaction, Ault's indirect ownership, through Ault & Company, Inc., increased to 7,049 shares. Additionally, Ault directly holds 432 shares of common stock and 116 shares of 13% Series D Cumulative Redeemable Perpetual Preferred Stock. Ault's role as both a director and officer, as well as a significant shareholder, underscores his continued involvement and investment in Hyperscale Data.
In other recent news, Hyperscale Data, Inc. has made significant strides in its financial strategy. The company secured a substantial $47.6 million investment from its affiliate, Ault & Company, Inc. through the sale of Series C convertible preferred stock and corresponding warrants. In addition, Hyperscale Data raised $47.55 million through the sale of additional equity securities. This series of financial transactions is part of the company's broader strategy to manage its capital structure and ensure liquidity.
The company has also reached a forbearance agreement with an institutional investor regarding a $5.39 million convertible promissory note, indicating a strategic approach to managing its total debt of $127.62 million. The forbearance note carries an 18% annual interest rate and is set to mature on February 15, 2025.
Hyperscale Data also recently announced a reverse stock split, consolidating every thirty-five shares into one. This move is part of the company's strategic financial maneuvers to strengthen its capital structure. Additionally, the company has sold a real estate property in St. Petersburg, Florida for $13.2 million.
In terms of operational developments, Hyperscale Data is focusing on enhancing its data center operations, specifically its artificial intelligence (AI) data center in Michigan. The company plans to increase the facility's capacity from approximately 30 megawatts to 300 megawatts, pending regulatory approvals and financing. These are the latest developments in Hyperscale Data's ongoing activity in the electronic components sector.
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