Hyperscale Data Launches ATM Offering of 13% Preferred Stock to Raise $35.4M
Hyperscale Data established an at-the-market program to sell up to $35.4 million of 13% Series D Cumulative Redeemable Perpetual Preferred Stock. It plans to use most net proceeds to acquire Bitcoin and possibly gold, silver or copper, with the remainder allocated to working capital and debt repayment.
1. ATM Offering Details
Hyperscale Data has established an at-the-market equity offering program under which it may sell shares of its 13% Series D Cumulative Redeemable Perpetual Preferred Stock for aggregate gross proceeds of up to $35.4 million. Wilson-Davis & Co. will act as sales agent, executing transactions at prevailing market prices on the NYSE American or as otherwise agreed.
2. Use of Proceeds
The company intends to deploy the majority of net proceeds to acquire additional Bitcoin holdings and potentially purchase precious metals, including gold, silver and copper. A smaller portion of funds will support working capital needs and may be used for repayment, refinancing, redemption or repurchase of existing debt or capital stock.
3. Capital Structure Implications
Issuance of the 13% preferred shares introduces a fixed cumulative dividend obligation and may dilute existing equity positions. The offering is conducted under a shelf registration effective December 11, 2025, granting management broad discretion over timing and specific application of net proceeds.
4. Strategic Business Context
Through its AI data center subsidiary, Hyperscale Data mines digital assets and offers colocation services, while its holding company unit, Ault Capital Group, pursues diversified investments. A planned divestiture of Ault Capital Group in Q4 2026 will refocus the company on data center operations and digital asset holdings.