Milton C. Ault III, the Executive Chairman of Hyperscale Data, Inc. (NASDAQ:GPUS), has acquired additional shares of the company. According to a recent SEC filing, Ault purchased 3,485 shares of common stock on November 20, 2024, at a volume-weighted average price of $0.1621 per share. The transaction, valued at approximately $564, was conducted in open market transactions with purchase prices ranging from $0.1508 to $0.1680 per share.
Following this acquisition, Ault directly owns 15,130 shares of common stock. Additionally, he indirectly owns 204,729 shares through Ault & Company, Inc., where he serves as Chief Executive Officer. Ault also holds 116 shares of 13% Series D Cumulative Redeemable Perpetual Preferred Stock directly.
In other recent news, Hyperscale Data, Inc. has secured a substantial investment of $46.98 million through the sale of convertible preferred stock and associated warrants, as part of an ongoing securities purchase agreement with Ault & Company, Inc. The company has also announced a reverse stock split, consolidating every thirty-five shares into one. Hyperscale Data has been involved in a series of private equity sales, with the aggregate investment reaching $46.53 million, potentially reaching up to $75 million.
The company has also sold a real estate property in St. Petersburg, Florida for $13.2 million, depositing $11 million of the sales price into an account benefiting its senior secured lenders. Hyperscale Data is focusing on enhancing its data center operations, specifically its artificial intelligence (AI) data center in Michigan, with plans to increase the facility’s capacity from approximately 30 megawatts to 300 megawatts, contingent on regulatory approvals and financing.
Lastly, Hyperscale Data’s shareholders have approved the conversion of a 10% OID Convertible Promissory Note into common stock. These are recent developments in Hyperscale Data’s ongoing activity in the electronic components sector.
InvestingPro Insights
Milton C. Ault III’s recent purchase of Hyperscale Data, Inc. (NASDAQ:GPUS) shares comes at a time when the company faces significant financial challenges. According to InvestingPro data, GPUS has a market capitalization of just $7.05 million, reflecting its microcap status. The company’s stock price has experienced substantial declines, with a one-year price total return of -91.98% and a year-to-date return of -92.23% as of the latest data.
These steep declines align with two key InvestingPro Tips: the stock has fared poorly over the last month, and its price has fallen significantly over the last year. These trends suggest that Ault’s purchase may be an attempt to demonstrate confidence in the company’s future prospects despite its current struggles.
However, investors should be aware that GPUS operates with a significant debt burden and may have trouble making interest payments, as indicated by additional InvestingPro Tips. The company’s financial health is further strained by its negative operating income margin of -40.9% for the last twelve months, highlighting the challenges it faces in achieving profitability.
For those seeking a more comprehensive analysis, InvestingPro offers 11 additional tips for GPUS, providing deeper insights into the company’s financial situation and market performance.
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