On December 23, 2024, Hyperscale Data, Inc., based in Las Vegas, Nevada, announced a significant development in its financial strategy. The company has entered into a Securities Purchase Agreement with Ault & Company, Inc. for a financing deal worth up to $25 million.

Under the terms of the agreement, Hyperscale Data will issue and sell shares of Series G Convertible Preferred Stock to Ault & Company. These Preferred Shares hold a stated value of $1,000 per share and are convertible into Common Stock at the holder’s discretion. The conversion price is set at a premium over the current market price, demonstrating A&C’s confidence in the company’s potential growth.

Moreover, as part of the deal, A&C will also receive warrants to purchase approximately 4.25 million shares of Common Stock at an exercise price of $5.92 per share. This additional provision further solidifies the partnership between Hyperscale Data and Ault & Company.

The proceeds from this financing arrangement will primarily be utilized for expanding the MI data center infrastructure to support high-performance computing services catering to Artificial Intelligence solutions. Additionally, funds will be allocated towards repaying outstanding debts and bolstering general working capital initiatives.

Milton “Todd” Ault III, Executive Chairman of Hyperscale Data and Chairman & CEO of A&C expressed his confidence in this agreement as a strategic move to unlock value within the company’s portfolio entities. He emphasized that this transaction signifies long-term belief in their data centers and associated businesses that have been nurtured over several years.

The agreement outlines multiple closing dates until December 31, 2025, with provisions for extensions if necessary. However, finalizing these transactions is subject to customary closing conditions along with regulatory approvals and stockholder consent.

For more information on this financing deal and related securities details, interested parties can refer to Hyperscale Data’s public filings available on their website or through the U.S. Securities and Exchange Commission (SEC).

In conclusion,
This financing agreement marks a significant milestone for Hyperscale Data as it paves the way for enhanced operational capabilities and growth opportunities within its diversified portfolio segments.