Hyperscale Data Inc. - GPUS STOCK NEWS

Hyperscale Data (NYSE: GPUS) has announced two significant dividend declarations. The Board approved a monthly cash dividend of $0.2708333 per share for its 13.00% Series D Cumulative Redeemable Perpetual Preferred Stock, with a record date of February 28, 2025, and payment date of March 10, 2025.

Additionally, the company declared a previously deferred dividend of $0.20833 per share for its 10.00% Series E Cumulative Redeemable Perpetual Preferred Stock for January 2025, while electing to defer the February 2025 dividend. The company notes that it can defer up to 12 consecutive monthly dividend payments on Series E Preferred Stock without being considered missed, as these are cumulative dividends that accrue for future payment.

Hyperscale Data (NYSE American: GPUS) has announced the successful payment of 32 consecutive monthly cash dividends for its 13.00% Series D Cumulative Redeemable Perpetual Preferred Stock. The dividends are paid at a rate of 13.00% per annum per $25.00 of stated liquidation preference, equating to $0.2708333 per share monthly.

The company's Executive Chairman, Milton 'Todd' Ault III, emphasized their commitment to enhancing credit profile and maintaining timely dividend payments. He noted that the Series D Preferred Stock currently yields 21.05% based on the February 11, 2025 closing price of $15.44.

Hyperscale Data (NYSE: GPUS) reported mining 19.2 Bitcoin in January 2025 at its Michigan data center, generating approximately $1.9 million in monthly mining revenue based on Bitcoin's current price of $97,000. The company announced its transition from Bitcoin mining to high-performance computing (HPC) services for AI solutions, expected to complete by September 2025.

The company projects approximately $20 million in Bitcoin mining revenue for 2025, assuming Bitcoin maintains its current price. Additionally, Hyperscale Data plans to resume Bitcoin mining operations at its Montana location by March's end. The company's Michigan data center has a power capacity of 30MW, which will be transitioned from Bitcoin mining to HPC services.

Hyperscale Data (NYSE American: GPUS) has announced the successful completion of 31 consecutive monthly cash dividend payments for its 13.00% Series D Cumulative Redeemable Perpetual Preferred Stock. The dividends are paid at a rate of 13.00% per annum per $25.00 of stated liquidation preference, equating to $0.2708333 per share monthly.

Milton 'Todd' Ault III, the company's Founder and Executive Chairman, emphasized their commitment to enhancing the company's credit profile while maintaining consistent value for stockholders as they approach the three-year mark of consecutive dividend payments.

Hyperscale Data (NYSE American: GPUS) has announced two dividend declarations and one deferral. The Board declared a monthly cash dividend of $0.2708333 per share for its 13.00% Series D Cumulative Redeemable Perpetual Preferred Stock, payable on February 10, 2025, to shareholders of record as of January 31, 2025.

Additionally, the company declared a prorated dividend of $0.15278 per share for its 10.00% Series E Cumulative Redeemable Perpetual Preferred Stock, representing the previously deferred dividend for December 2024. However, the Board has elected to defer the January 2025 monthly dividend for the Series E Preferred Stock. The company notes that it can defer up to 12 consecutive monthly dividend payments on Series E Preferred Stock without being considered missed, as these are cumulative dividends that accrue for future payment.

Ault & Company has increased its controlling stake in Hyperscale Data (NYSE: GPUS) to 91.7% of beneficial ownership as of January 3, 2025. The stake consists of 13,900,765 shares of Class A Common stock, including direct ownership, convertible shares, and warrants.

The increased ownership includes Class B Common stock received as dividends and recent purchases of Preferred Shares. Hyperscale Data is transitioning to become solely an owner and operator of data centers supporting high-performance computing services.

The stake comprises 8,249 shares of Class A Common, 4,234,561 shares convertible from Class B Common, 9,140,771 shares from Series C Preferred conversion, 88,494 shares from Series G Preferred conversion, and 428,690 shares from outstanding warrants.

Hyperscale Data's subsidiary, Alliance Cloud Services, has secured a three-year agreement with a Silicon Valley cloud services provider for its Michigan Data Center. The deal includes seven server cabinets initially, with the option to add five more. Each cabinet will utilize approximately 40 kilowatts of power, with cooling systems capable of handling double that capacity.

While this implementation uses only a small portion of the 100,000 sq.ft. facility and its 28 MW power capacity, it demonstrates the high-density power and cooling solutions needed for modern computing. The company aims to expand its data center operations to 300+ MW of power over the next four years as part of its transition to becoming a pure-play data center company.

Ault & Company has announced the abandonment of its planned cash tender offer to purchase up to 111,000 shares of Hyperscale Data's Class A Common Stock, which was initially proposed at a price range of $7.50 to $10.00 per share. Instead, the company will pursue a new securities purchase agreement that grants them the right to acquire up to $25 million in Hyperscale Data's Series G Convertible Preferred Stock.

The company maintains that Hyperscale Data's current stock price is below its long-term intrinsic value and views the preferred shares investment as a demonstration of their continued support. Ault & Company, along with its affiliates, currently owns approximately 91.7% of Hyperscale Data's outstanding common stock, primarily through Series C Convertible Preferred Stock and warrants.

Hyperscale Data (NYSE: GPUS) has completed a $50 million preferred equity investment through the issuance of 50,000 Series C Convertible Preferred Stock shares to Ault & Company. The investment, made over the past 13 months, is part of a larger $75 million offering, with $25 million still pending completion.

The company is transforming into a pure AI data center business by spinning out all non-data center and non-Bitcoin mining assets. The funds will be used to expand the MI data center, implement infrastructure upgrades for high-performance computing services powering AI solutions, repay outstanding debt, and provide working capital.