LAS VEGAS - Ault Alliance, Inc., a diversified holding company, has announced a corporate rebranding to Hyperscale Data, Inc., effective September 10, 2024. The company's common stock will start trading under the new ticker symbol "GPUS" from the same date on the NYSE American. This change will also apply to the company’s Series D Cumulative Redeemable Perpetual Preferred Stock, which will transition from "AULT PRD" to "GPUS PRD."
The rebranding and ticker symbol change reflect the company's strategic shift towards data center operations. Hyperscale Data aims to expand its Michigan-based data center's capacity tenfold, from roughly 30 megawatts to 300 megawatts. This move is contingent upon receiving state regulatory approvals and securing adequate funding.
Will Horne, the CEO of Hyperscale Data, expressed enthusiasm for the new identity, emphasizing the company's commitment to scaling its data center capabilities to meet the increasing demands for artificial intelligence (AI) and digital infrastructure services.
The company's rebranding decision aligns with industry trends, as a Goldman Sachs report indicates AI could drive a 160% surge in data center power demand. Hyperscale Data's expansion efforts are strategically positioned to cater to this growing market need, with many of the leases for the expanded Michigan facility involving NVIDIA (NASDAQ:NVDA) servers.
Stockholders do not need to take any action regarding the ticker symbol changes as the applicable CUSIP numbers will remain unchanged. Hyperscale Data will continue to manage its primary data centers, including the flagship facility in Michigan, under the leadership of CEO Will Horne.
This news article is based on a press release statement from Ault Alliance, Inc. The company, now transitioning to Hyperscale Data, Inc., has a diversified portfolio including Bitcoin mining, AI ecosystems hosting, and various other industries. The corporate headquarters are in Las Vegas, NV.
In other recent news, Ault Alliance, Inc. has seen significant developments. Shareholders approved the conversion of a 10% OID Convertible Promissory Note into common stock, a move that can potentially influence the company's capital structure. The company also announced a strategic reorganization, focusing on its artificial intelligence (AI) data center operations and divesting non-core assets. Ault Alliance reported a revenue of $76.3 million for the first half of 2024 and total assets amounting to $271 million.
Further, the company plans to upgrade its Michigan facility to a hyperscale data center and change its name to Hyperscale Data, Inc. As part of its capital-raising efforts, Ault Alliance sold 300 shares of Series C convertible preferred stock and accompanying warrants for a total of $300,000. At the 2024 Annual Meeting of Stockholders, several key proposals were approved, and six directors were appointed to the board. These are recent developments that have shaped the company's strategic direction and financial health.
InvestingPro Insights
As Ault Alliance transitions to Hyperscale Data, Inc., investors are closely monitoring the financial health and market performance of the company. According to InvestingPro data, the company currently holds a market capitalization of $8.91 million. The rebranding comes at a time when the company's stock price has experienced significant volatility, with a Price / Book multiple of just 0.33, suggesting the market values the company at a fraction of its book value. This could indicate that assets are potentially undervalued or that the market has concerns about the company's future profitability.
Recent performance metrics illuminate challenges faced by the company, with a one-year price total return of -99.22%, underscoring the steep decline in the stock's value over the past year. This trend aligns with the InvestingPro Tip that the stock has fared poorly, not just over the last month but also over a more extended period.
InvestingPro Tips highlight significant financial pressure points, including a substantial debt burden and the potential difficulty in making interest payments. This is particularly relevant as Hyperscale Data seeks to expand its operations, which will require substantial capital investment. With the company quickly burning through cash and short-term obligations exceeding liquid assets, the financial maneuvering room appears tight.
For those interested in a more comprehensive analysis, InvestingPro offers additional tips on Ault Alliance, Inc. (now Hyperscale Data, Inc.), which can be found at: https://www.investing.com/pro/AULT. These tips provide deeper insights into the company's financials and market performance, which could be invaluable for investors considering this stock amidst its strategic transformation.
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