Hyperscale Data Secures $50 Million for AI Data Center Expansion

Significant Equity Financing Agreement by Hyperscale Data

Hyperscale Data, Inc. (NYSE American: GPUS) has recently entered into a transformative agreement that will provide up to $50 million in equity financing. This financing comes from a reputable, unaffiliated institutional investor, signifying strong confidence in the company's strategic direction. The investment is aimed at accelerating the construction of Hyperscale Data's advanced data center located in Michigan, a project that holds considerable importance for the company's growth strategy.

New Opportunities with the Innovative Financing

The investor involved in this financing has pledged to purchase up to 50,000 shares of newly designated Series B Convertible Preferred Stock, marking a substantial step toward fulfilling the company's ambitious plans. According to William B. Horne, the Chief Executive Officer, this influx of capital underscores the support for Hyperscale Data’s vision and business model. With this funding, Hyperscale Data will be better positioned to continue constructing its data center in Michigan and scale operations. This response to the growing need for efficient cloud infrastructure is particularly timely as more enterprises look for energy-efficient data solutions.

Expanding Infrastructure for the Future

The Michigan data center is designed to be a hyperscale-ready campus, catering specifically to enterprises focused on artificial intelligence (AI) and high-performance computing (HPC). The facility will incorporate cutting-edge cooling technologies and a robust power infrastructure, all while committing to sustainable practices that promote operational efficiency.

Building a Sustainable Future

Milton “Todd” Ault III, Executive Chairman of Hyperscale Data, emphasizes the company's commitment to the future, stating, "We are building a resilient and efficient digital framework that can adapt to the ever-evolving technological landscape." He also noted that the financing arrangement will allow Hyperscale Data to accelerate its operational capacity significantly, which is vital in a market that demands rapid infrastructure development. In tandem with infrastructure expansion, the project is expected to contribute to local economic growth and job creation, fostering community development.

Details of the Equity Financing

The financing will be executed through a series of monthly closings, where the investor is required to provide a minimum of $1 million each month, subject to specific conditions. The structure of this agreement allows the investor the flexibility to expedite future closings if necessary. More information regarding this securities offering and its terms will be included in an upcoming disclosure to the U.S. Securities and Exchange Commission.

Commitment to Compliance

As part of the securities transaction, it’s important to note that the preferred shares are being offered under a private placement mechanism, adhering to Section 4(a)(2) of the Securities Act of 1933, along with Regulation D. This means the shares will not be registered, thus limiting their sale within the United States to only specific exemptions.

About Hyperscale Data, Inc.

Hyperscale Data operates a state-of-the-art data center which focuses on digital asset mining and offers essential colocation and hosting services. The company is also known for its subsidiary, Ault Capital Group, Inc. (ACG), which seeks to drive growth through the acquisition of promising and undervalued technologies. While Hyperscale Data intends to divest ACG by the end of 2025 and solely concentrate on data center operations and HPC services, it continues to leverage its diversified strategies within various industries, including AI, gaming, and medical sectors.

Future Prospects

With a robust strategic plan and the recent investment, Hyperscale Data is poised to make a substantial impact in the data infrastructure arena. The firm’s commitment to developing a future-ready digital landscape promises great potential for its stakeholders and the communities in which it operates.

Frequently Asked Questions

What is the purpose of Hyperscale Data's financing agreement?

The financing agreement aims to support the buildout of a new data center in Michigan, enhancing infrastructure for AI and HPC services.

How will the financing be structured?

The agreement entails a series of monthly closings, with a minimum commitment of $1 million each month from the investor, allowing for expedited closings based on conditions.

What technologies will the Michigan data center feature?

The data center is designed to incorporate advanced cooling technologies and a strong power infrastructure while focusing on energy efficiency and sustainability.

What industries does Hyperscale Data serve?

Hyperscale Data serves various industries, including AI, gaming, healthcare, and automotive sectors, through its data center and increased investment in technology.

What are the future plans for Hyperscale Data?

The company plans to divest Ault Capital Group by the end of 2025 and concentrate exclusively on data center operations and HPC services for ongoing growth.

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