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Hyperscale Data Enters into an Agreement for up to $50 Million in New Equity Financing to Accelerate Buildout of Artificial Intelligence Data Center in Michigan

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Hyperscale Data (NYSE: GPUS) has secured up to $50 million in new equity financing through an agreement with an unaffiliated institutional investor. The deal involves the purchase of up to 50,000 shares of Series B Convertible Preferred Stock through monthly closings of minimum $1 million each.

The capital will accelerate the construction of the company's Michigan data center, which is being developed as a hyperscale-ready campus targeting enterprise, artificial intelligence (AI), and high-performance computing cloud providers. The facility will feature advanced cooling technologies, robust power infrastructure, and focus on sustainable operations.

The expansion of power capacity at the Michigan facility will commence in the coming months, with regular stockholder updates planned on the buildout progress.

Hyperscale Data (NYSE: GPUS) ha ottenuto fino a 50 milioni di dollari in nuovo finanziamento azionario attraverso un accordo con un investitore istituzionale non affiliato. L'accordo prevede l'acquisto di fino a 50.000 azioni di azioni privilegiate convertibili di Serie B tramite chiusure mensili di almeno 1 milione di dollari ciascuna.

Il capitale accelererà la costruzione del data center del Michigan dell'azienda, che viene sviluppato come un campus pronto per l'iper scala, mirato a fornitori di servizi cloud per imprese, intelligenza artificiale (AI) e calcolo ad alte prestazioni. La struttura presenterà tecnologie di raffreddamento avanzate, un'infrastruttura energetica robusta e si concentrerà su operazioni sostenibili.

L'espansione della capacità energetica presso la struttura del Michigan inizierà nei prossimi mesi, con aggiornamenti regolari per gli azionisti previsti sul progresso della costruzione.

Hyperscale Data (NYSE: GPUS) ha asegurado hasta 50 millones de dólares en nueva financiación de capital a través de un acuerdo con un inversor institucional no afiliado. El acuerdo implica la compra de hasta 50,000 acciones de acciones preferentes convertibles de Serie B a través de cierres mensuales de un mínimo de 1 millón de dólares cada uno.

El capital acelerará la construcción del centro de datos de Michigan de la empresa, que se está desarrollando como un campus listo para hiperescalado, dirigido a proveedores de nube para empresas, inteligencia artificial (IA) y computación de alto rendimiento. La instalación contará con tecnologías de refrigeración avanzadas, una infraestructura energética robusta y se centrará en operaciones sostenibles.

La expansión de la capacidad energética en la instalación de Michigan comenzará en los próximos meses, con actualizaciones regulares para los accionistas previstas sobre el progreso de la construcción.

하이퍼스케일 데이터 (NYSE: GPUS)는 비연관 기관 투자자와의 계약을 통해 최대 5천만 달러의 새로운 자본 조달을 확보했습니다. 이 거래는 매달 최소 100만 달러의 금액으로 최대 50,000주의 B 시리즈 전환 우선주를 구매하는 것을 포함합니다.

이 자본은 기업, 인공지능(AI) 및 고성능 컴퓨팅 클라우드 제공업체를 목표로 하는 하이퍼스케일 준비 캠퍼스로 개발 중인 미시간 데이터 센터의 건설을 가속화할 것입니다. 이 시설은 첨단 냉각 기술, 강력한 전력 인프라를 갖추고 있으며 지속 가능한 운영에 초점을 맞출 것입니다.

미시간 시설의 전력 용량 확장은 앞으로 몇 달 내에 시작될 예정이며, 건설 진행 상황에 대한 정기적인 주주 업데이트가 계획되어 있습니다.

Hyperscale Data (NYSE: GPUS) a sécurisé jusqu'à 50 millions de dollars de nouveau financement en capital grâce à un accord avec un investisseur institutionnel non affilié. L'accord implique l'achat de jusqu'à 50 000 actions d'actions privilégiées convertibles de Série B par le biais de clôtures mensuelles d'un minimum de 1 million de dollars chacune.

Ce capital accélérera la construction du centre de données du Michigan de l'entreprise, qui est développé comme un campus prêt pour l'hyperscale, visant les entreprises, l'intelligence artificielle (IA) et les fournisseurs de cloud computing haute performance. L'installation sera dotée de technologies de refroidissement avancées, d'une infrastructure énergétique robuste et mettra l'accent sur des opérations durables.

L'expansion de la capacité énergétique de l'installation du Michigan commencera dans les mois à venir, avec des mises à jour régulières des actionnaires prévues sur les progrès de la construction.

Hyperscale Data (NYSE: GPUS) hat bis zu 50 Millionen Dollar an neuer Eigenkapitalfinanzierung durch eine Vereinbarung mit einem nicht verbundenen institutionellen Investor gesichert. Der Deal umfasst den Kauf von bis zu 50.000 Anteilen an Serie B wandelbaren Vorzugsaktien durch monatliche Abschlüsse von mindestens 1 Million Dollar jeweils.

Das Kapital wird den Bau des Rechenzentrums in Michigan des Unternehmens beschleunigen, das als hyperscale-fähiger Campus entwickelt wird, der sich an Unternehmen, künstliche Intelligenz (KI) und Anbieter von Hochleistungs-Cloud-Computing richtet. Die Einrichtung wird über fortschrittliche Kühlsysteme, eine robuste Energieinfrastruktur verfügen und sich auf nachhaltige Betriebsabläufe konzentrieren.

Die Erweiterung der Leistungskapazität in der Einrichtung in Michigan wird in den kommenden Monaten beginnen, und es sind regelmäßige Updates für die Aktionäre über den Fortschritt des Ausbaus geplant.

Positive
  • Secured significant funding of up to $50 million for data center expansion
  • Monthly minimum funding guarantee of $1 million
  • Strategic expansion into high-demand AI and HPC infrastructure market
  • Development of sustainable and energy-efficient data center infrastructure
Negative
  • Potential dilution for existing shareholders through convertible preferred stock issuance
  • Monthly funding subject to certain conditions
  • Securities being issued through private placement, limiting trading flexibility

Insights

Hyperscale Data's $50 million equity financing agreement represents a transformative capital injection for a company with just a $3.16 million market capitalization. This 15x market cap funding signals extraordinary institutional investor confidence in GPUS's business model and growth strategy.

The structured financing approach—with mandatory monthly minimums of $1 million and acceleration options—creates favorable capital deployment flexibility while enforcing disciplined execution. This prevents dilution without corresponding progress and aligns capital infusion with achievement milestones.

While the conversion terms of the preferred stock aren't disclosed (forthcoming in an 8-K filing), significant dilution is inevitable given the funding-to-market-cap ratio. However, for microcap companies pursuing capital-intensive growth opportunities, securing substantial committed capital is typically the primary hurdle, even at the cost of dilution.

The strategic focus on high-density AI and HPC workloads positions GPUS in a high-growth infrastructure segment with persistent capacity constraints. The Michigan data center's emphasis on advanced cooling technologies and robust power infrastructure addresses critical requirements for next-generation computing.

For investors, while near-term dilution presents a challenge, the company now has runway to execute its data center strategy in a capital-intensive sector where barriers to entry are substantial. This institutional backing fundamentally transforms GPUS's execution capabilities in the hyperscale data center market.

The $50 million financing enables Hyperscale Data to accelerate development of its Michigan facility at a critical market inflection point. AI computing infrastructure demand is experiencing unprecedented growth, with hyperscale providers struggling to secure sufficient high-density compute capacity.

The emphasis on "hyperscale-ready" architecture with advanced cooling technologies indicates proper technical positioning. Modern AI workloads generate extraordinary heat density—often exceeding 25-50kW per rack—requiring sophisticated cooling solutions beyond traditional data center designs. This positions the facility for high-value tenancy.

Michigan provides strategic advantages for AI infrastructure: favorable climate for cooling efficiency, relatively low electricity costs, and reduced natural disaster risk compared to coastal locations. The location balances proximity to major Midwest markets while avoiding the premium costs and capacity constraints of tier-1 data center hubs.

The focus on sustainability aligns with hyperscale customer requirements, as major AI providers face increasing scrutiny over computational carbon footprints. Energy efficiency in cooling and power infrastructure directly impacts operational margins in data center economics.

This financing transforms Hyperscale Data from concept to credible market participant in the hyperscale AI infrastructure landscape. The company has correctly identified the highest-growth, highest-margin segment of the data center market—AI and HPC workloads—where demand substantially outpaces current supply, creating premium pricing opportunities for properly designed facilities.

LAS VEGAS, April 01, 2025 (GLOBE NEWSWIRE) -- Hyperscale Data, Inc. (NYSE American: GPUS), a diversified holding company (“Hyperscale Data” or the “Company”), today announced it has entered into an agreement for up to $50 million in new equity financing from a single, unaffiliated institutional investor (the “Investor”). The Investor has committed to purchasing up to 50,000 shares of newly designated Series B Convertible Preferred Stock (the “Preferred Transaction”). The capital from the Preferred Transaction will be used to accelerate the buildout of the Company’s state-of-the-art Michigan data center, marking a major milestone in Hyperscale Data’s previously announced growth plans.

“The Preferred Transaction represents a strong endorsement of our vision and business model,” stated William B. Horne, Chief Executive Officer of Hyperscale Data. “With this infusion of capital, we will be well-positioned to advance construction of our Michigan data center and expand capacity to meet the accelerating demand for scalable, energy-efficient data center infrastructure.”

The Company’s Michigan data center is being developed as a hyperscale-ready campus designed to serve enterprise, artificial intelligence (“AI”), and high-performance computing (“HPC”) cloud providers with high-density workloads. The facility will feature advanced cooling technologies, robust power infrastructure, and a commitment to sustainable and efficient operations.

“We are building for the future—laying the groundwork for digital infrastructure that is resilient, efficient, and future-proof,” added Milton “Todd” Ault III, Executive Chairman of Hyperscale Data. “The Preferred Transaction allows us to execute on that vision at speed and scale, while also contributing to economic development and job creation in the local community. The expansion of the overall power capacity at our Michigan data center will begin in the coming months and we will update stockholders as the buildout progresses.”

The Preferred Transaction will be conducted through a series of monthly closings with the Investor being obligated to fund a minimum of $1 million each month, subject to certain conditions, with the right to accelerate closings. Additional information regarding the securities described above and the terms of the Preferred Transaction will be included in a Current Report on Form 8-K to be filed with the United States Securities and Exchange Commission.

The preferred shares described above are being issued in a private placement under Section 4(a)(2) of the Securities Act of 1933, as amended (the “Securities Act”), and Regulation D promulgated thereunder and, along with the shares of common stock underlying the preferred shares, have not been registered under the Securities Act, or applicable state securities laws. Accordingly, the preferred shares and the underlying shares of common stock issuable upon conversion of the preferred shares may not be offered or sold in the United States except pursuant to an effective registration statement or an applicable exemption from the registration requirements of the Securities Act and such applicable state securities laws.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of shares of the Company’s common stock in any state or other jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or other jurisdiction.

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

About Hyperscale Data, Inc.

Through its wholly owned subsidiaries, Hyperscale Data owns and operates a data center at which it mines digital assets and offers colocation and hosting services for the emerging AI ecosystems and other industries. Hyperscale Data’s subsidiary, Ault Capital Group, Inc. (“ACG”), is a diversified holding company pursuing growth by acquiring undervalued businesses and disruptive technologies with a global impact.

Hyperscale Data intends to completely divest itself of ACG on or about December 31, 2025, at which time, it would solely be an owner and operator of data centers to support HPC services. Until that happens, the Company provides, through ACG and its wholly and majority-owned subsidiaries and strategic investments, mission-critical products that support a diverse range of industries, including an AI software platform, social gaming platform, equipment rental services, defense/aerospace, industrial, automotive, medical/biopharma and hotel operations. In addition, ACG is actively engaged in private credit and structured finance through a licensed lending subsidiary. Hyperscale Data’s headquarters are located at 11411 Southern Highlands Parkway, Suite 190 Las Vegas, NV 89141.

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 hyperscaledata.com.

Hyperscale Data Investor Contact:
IR@hyperscaledata.com or 1-888-753-2235


FAQ

What is the value of Hyperscale Data's (GPUS) new equity financing agreement?

Hyperscale Data has secured up to $50 million in new equity financing through Series B Convertible Preferred Stock sales to an institutional investor.

How will GPUS receive the $50 million funding for its Michigan data center?

The funding will be received through monthly closings of minimum $1 million each, with the investor having the right to accelerate closings.

What is the purpose of Hyperscale Data's Michigan data center expansion?

The data center will serve enterprise, AI, and high-performance computing cloud providers with high-density workloads, featuring advanced cooling and sustainable operations.

When will GPUS begin expanding the power capacity at its Michigan data center?

The expansion of power capacity at the Michigan data center will begin in the coming months of 2025.

What type of stock is being issued in GPUS's new financing agreement?

The agreement involves the issuance of up to 50,000 shares of Series B Convertible Preferred Stock through private placement.
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