Hyperscale Plans Tender Offer to Repurchase Shares at 82% Premium, Capped at $50 Million

November 9, according to PR Newswire, Hyperscale Data (GPUS), an AI data center company listed on NYSE American, announced it intends to initiate a tender offer to repurchase up to 192,307,692 shares of Class A common stock for cash plus newly issued preferred stock, priced at $0.26 per share, representing a maximum transaction value of approximately $50 million.

Each 100 shares of common stock will be exchanged for 1 unit, comprising $2 in cash and 1 share of preferred stock with a stated value of $24, carrying an annual dividend rate of 12.00%. The $0.26 price reflects an 82% premium over the closing price of $0.1429 on November 6. The tender offer requires the participation of at least 100 million shares of common stock to become effective. The company intends to apply to list its preferred stock on NYSE American, with trading expected to commence within 30 days of approval. The official launch is anticipated around November 17, pending board and regulatory approvals.

Executive Chairman Milton “Todd” Ault III stated that there is a significant disconnect between the company’s intrinsic value and its current stock price. This tender offer provides shareholders with liquidity and a fixed-income instrument while allowing the company to repurchase a substantial portion of its shares at a materially undervalued level. The company noted that its current market capitalization does not reflect its balance sheet strength, including its cash and Bitcoin positions.