Hyperscale Data, a diversified holding company, completed a $50 million preferred equity investment, whereby the company sold that dollar amount through the issuance to Ault of 50,000 shares of series C convertible preferred stock. Ault invested $50 million through multiple closings over the past 13 months. This influx of capital was aimed at enabling Hyperscale Data to accelerate its growth trajectory, enhance its technological offerings and execute its business expansion plans more effectively, with a focus on becoming a pure AI data center company.
In addition to this significant investment, Hyperscale Data is spinning out all of its non-data center and non-Bitcoin mining assets. This move is aimed at refining the company’s core focus and reinforcing its commitment to leading the AI-driven data center industry.
“The $50 million investment was critical for our transformation into a pure AI data center company,” Will Horne, CEO of Hyperscale Data, said. “This investment has propelled, and could continue to propel, our efforts to innovate and expand our capabilities at a significant pace, ultimately allowing us to serve our customers’ needs with even greater agility and efficiency.”
“We’re excited to partner with Hyperscale Data, a company positioning itself at the forefront of the data center industry,” Milton “Todd” Ault III, CEO of Ault, said. “We recognize the enormous potential in leveraging Hyperscale Data’s innovative technologies and are proud to support its vision as they transition into a pure play data center business.”
The funds received from this investment, along with the previously announced additional $25 million investment, will be used for the expansion of the MI data center to implement infrastructure upgrades necessary to support the growing demands of high-performance computing services powering artificial intelligence solutions, repayment of outstanding indebtedness and general working capital purposes.
