Ault Alliance Announces Plans to Issue a Special Preferred Artificial Intelligence Data Center and Bitcoin Mining Dividend to Stockholders

Rhea-AI Summary

Ault Alliance (NYSE American: AULT) plans to issue a special preferred dividend for its common and Series C preferred stockholders. Each share of common stock will receive one share of newly designated preferred stock, which will pay a percentage of profits from AI data center operations and Bitcoin mining by its subsidiary, Sentinum. The preferred dividend is expected to be between 0.25% and 25% of the $1 face value per share, pending Board approval and regulatory consent. The initiative aims to reward stockholders with a direct stake in Sentinum's profits. Ault Alliance seeks stockholder approval to increase the number of authorized preferred shares and to list the new preferred stock on a national exchange.

Positive

• Board approval for a special preferred AI data center and Bitcoin mining dividend.
• Stockholders to receive newly designated preferred stock for each common share owned.
• Potential dividend payout between 0.25% and 25% of the face value of preferred stock.
• Approximately 18,000 Bitcoin mining units operating with plans for expansion.
• Preferred stock expected to trade on a national exchange pending stockholder approval.
• Commitment to improving margins and expanding Bitcoin mining capabilities.

Negative

• Dividend amount and criteria are yet to be determined by the Board.
• Company reserves the right to abandon the proposed dividend prior to implementation.
• Stockholder approval needed to increase authorized preferred shares.
• Regulatory approval required for the dividend and trading plans.

LAS VEGAS--(BUSINESS WIRE)-- Ault Alliance, Inc. (NYSE American: AULT), a diversified holding company (“Ault Alliance,” or the “Company”), today announced it has obtained board approval for, and will pursue the issuance of, a special preferred Artificial Intelligence (“AI”) data center and Bitcoin mining dividend for stockholders of the Company’s common stock and Series C preferred stock. For each share of common stock beneficially owned, stockholders will receive one share of the newly designated preferred stock. This class of preferred shares is anticipated to pay a percentage of the profit from both the AI data center business and Bitcoin mining operations by the Company’s subsidiary Sentinum, Inc. (“Sentinum”) in cash as a special preferred dividend. The future dividend amount would be determined by the Board of Directors of the Company, subject to certain criteria that remain to be determined by the Board of Directors as well as regulatory approval. In addition, the Company reserves the right, in its sole discretion, to abandon the proposed dividend at any time prior to implementation.

The Company notes that the preferred dividend may range from 0.25% of the face value of the preferred stock, which is $1 per share, up to 25% of the face value of the preferred stock, subject to final approval from the Board of Directors.

The Company will seek stockholder approval to increase the number of authorized preferred shares. This transaction is meant for stockholders as of a to-be-determined future record date. The Company would seek to have this new class of preferred stock trade on a national exchange, pending stockholder approval. The new preferred stock is anticipated to have a stated value of $1.00 per share.

Milton “Todd” Ault III, Executive Chairman and Founder of the Company, stated, “This initiative has been important to the Company for a considerable amount of time, and we are committed to rewarding our stockholders. We are focusing on the logistics of accomplishing this dividend and are excited with the progress Sentinum, and the Company as a whole, have made in regard to its Bitcoin mining operations. This new preferred stock will reward stockholders with a percentage of the profits and future cash flows to be determined by the Board of Directors. We believe this is a unique opportunity to allow stockholders the opportunity to participate directly in one of our platform companies, Sentinum.”

With approximately 18,000 Bitcoin mining units operating and plans to expand its AI data center business, the Company is confident that this strategy will reward stockholders in both the short term and long term. The Company remains committed to maintaining its Bitcoin mining operations, which is expected to evolve from solely self-mined operations, to include the hosting of third party owned miners, and will continue to work on improving margins while expanding mining capabilities.

For more information on Ault Alliance and its subsidiaries, Ault Alliance recommends that stockholders, investors, and any other interested parties read Ault Alliance’s public filings and press releases available under the Investor Relations section at www.Ault.com or available at www.sec.gov.

About Ault Alliance, Inc.

Ault Alliance, Inc. is a diversified holding company pursuing growth by acquiring undervalued businesses and disruptive technologies with a global impact. Through its wholly and majority-owned subsidiaries and strategic investments, Ault Alliance owns and operates a data center at which it mines Bitcoin and offers colocation and hosting services for the emerging artificial intelligence ecosystems and other industries, and provides mission-critical products that support a diverse range of industries, including metaverse platform, oil exploration, crane services, defense/aerospace, industrial, automotive, medical/biopharma, hotel operations and textiles. In addition, Ault Alliance extends credit to select entrepreneurial businesses through a licensed lending subsidiary. Ault Alliance’s headquarters are located at 11411 Southern Highlands Parkway, Suite 240, Las Vegas, NV 89141; www.Ault.com.

Forward-Looking Statements

This press release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements generally include statements that are predictive in nature and depend upon or refer to future events or conditions, and include words such as “believes,” “plans,” “anticipates,” “projects,” “estimates,” “expects,” “intends,” “strategy,” “future,” “opportunity,” “may,” “will,” “should,” “could,” “potential,” or similar expressions. Statements that are not historical facts are forward-looking statements. Forward-looking statements are based on current beliefs and assumptions that are subject to risks and uncertainties.

Forward-looking statements speak only as of the date they are made, and the Company undertakes no obligation to update any of them publicly in light of new information or future events. Actual results could differ materially from those contained in any forward-looking statement as a result of various factors. More information, including potential risk factors, that could affect the Company’s business and financial results are included in the Company’s filings with the U.S. Securities and Exchange Commission, including, but not limited to, the Company’s Forms 10-K, 10-Q and 8- K. All filings are available at www.sec.gov and on the Company’s website at www.Ault.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240603941422/en/

Ault Alliance Investor Contact:

IR@Ault.com or 1-888-753-2235

Source: Ault Alliance, Inc.

FAQ

What is the special preferred dividend announced by Ault Alliance (AULT)?

Ault Alliance will issue a special preferred AI data center and Bitcoin mining dividend to common and Series C preferred stockholders.

How will Ault Alliance (AULT) distribute the special preferred dividend?

Each share of common stock will receive one share of newly designated preferred stock.

What is the expected dividend range for Ault Alliance (AULT) preferred stock?

The preferred dividend may range from 0.25% to 25% of the $1 face value per share, pending Board approval.

What businesses will contribute to Ault Alliance (AULT) dividend profits?

The dividend profits will come from AI data center operations and Bitcoin mining by its subsidiary, Sentinum.

What are the conditions for Ault Alliance (AULT) to implement the special dividend?

The dividend is subject to Board of Directors' final approval and regulatory consent.

Can Ault Alliance (AULT) abandon the proposed special dividend?

Yes, the company reserves the right to abandon the proposed dividend at any time prior to implementation.

Will Ault Alliance (AULT) preferred stock trade on a national exchange?

The company seeks stockholder approval to list the new preferred stock on a national exchange.

What is the face value of Ault Alliance (AULT) new preferred stock?

The new preferred stock is anticipated to have a stated value of $1.00 per share.