Hyperscale Data, Inc. (NYSE:GPUS) announced an at-the-market equity program for its preferred stock and subsequently saw its shares decline 12.8% in after-hours trading on Friday. The offering will put up to $35.4 million of gross proceeds within reach through the sale of its 13% Series D Cumulative Redeemable Perpetual Preferred Stock.
The company named Wilson-Davis & Co., Inc. as the sales agent for the program. According to Hyperscale Datas announcement, the majority of net proceeds from sales under the program are intended to be used to acquire Bitcoin and to potentially purchase certain precious metals, explicitly listing gold, silver and copper.
A portion of the funds raised will be reserved for working capital and general corporate purposes. The statement indicates these corporate uses may include activities such as debt repayment or stock repurchases, though no specific plans were detailed.
Sales under the program will be conducted in transactions deemed "at-the-market," which the company described as including ordinary brokers transactions on the NYSE American or sales at prevailing market prices. Management also stressed that it cannot predict with certainty all particular uses for the net proceeds, and that company leadership retains broad discretion over the timing and application of any funds raised through the offering.
The offering structure and the stated allocation of potential proceeds link capital markets activity to Hyperscale Datas operational emphasis on AI data center services and its Bitcoin operations. The announcement and the mechanics of how shares may be sold at market prices corresponded with the notable after-hours share-price move.
Contextual summary
Hyperscale Data is pursuing an at-the-market sale of perpetual preferred shares to raise up to $35.4 million. Most net proceeds are intended for cryptocurrency and potential precious metals purchases, while a smaller share is reserved for corporate liquidity needs. The offering was followed by a material after-hours drop in the companys quoted stock price.