Hyperscale Data, Inc. has launched an at-the-market equity offering program to raise aggregate gross proceeds of up to $300 million. The company, an artificial intelligence data center operator anchored by Bitcoin, will sell shares of its common stock from time to time through Spartan Capital Securities, LLC, acting as the sales agent. The proceeds are earmarked for expanding data center infrastructure and increasing holdings in digital assets and precious metals.

Sales under the offering will be conducted via transactions deemed to be at-the-market offerings. This includes sales made through ordinary brokers' transactions on the NYSE American or at prevailing market prices at the time of sale, as agreed upon with the agent. The structure allows the company to access capital flexibly based on market conditions.

Use of Proceeds

Hyperscale Data plans to allocate the majority of the net proceeds from the offering to three primary areas:

• Data Center Development: Further development of its Michigan and Montana data facilities.
• Bitcoin Acquisition: Purchasing additional Bitcoin.
• Precious Metals: Buying gold, silver, and/or copper.

A smaller portion of the proceeds will be directed toward working capital and general corporate purposes. This category may include the repayment, refinancing, redemption, or repurchase of future indebtedness or capital stock.

Management Discretion

As of the announcement date, the company stated it cannot predict with certainty all specific uses for the net proceeds. Consequently, Hyperscale Data's management retains broad discretion regarding the timing and application of the funds raised through this program.

Hyperscale Data Inc. (NYSE: GPUS) stock fell nearly 7% in Tuesday’s premarket trading after soaring 77.62% on Monday, a move attributed to profit-taking rather than a broad market sell-off. The decline contrasts with gains in Nasdaq and S&P 500 futures. The company is currently negotiating a master services agreement for AI compute deployments at its Michigan Campus through its indirect wholly owned subsidiary, Alliance Cloud Services, LLC (ACS). This strategic pivot involves ceasing Bitcoin mining operations to focus available power capacity on higher-margin colocation and data center services.

Hyperscale Data reported holding approximately 713.5884 Bitcoin (CRYPTO: BTC/USD), valued at about $46.9 million, alongside $40.2 million in cash and 10,000 ounces of silver. Based on the June 15 closing price of its common stock, the company’s $87.1 million in cash, restricted cash, and Bitcoin represented about 73.34% of its market capitalization.

ACS anticipates providing approximately 20 MWs of critical power capacity this year for a potential customer, with the first 10 MWs operational within 90 days and another 10 MWs following 90 days thereafter. The company projects that the initial 20 MWs could generate in excess of $1 billion in revenue over two decades, while an additional 32 MWs planned for 2028 could contribute another $1.5 billion. Management estimates the site has the potential to support more than 300 MWs of total power capacity, subject to regulatory approvals, financing, and infrastructure availability.

The company cautioned that these expansion concepts are preliminary and subject to numerous risks and uncertainties. There is no assurance that the additional capacity will be developed, financed, approved, or economically viable. Negotiations remain ongoing, and no definitive agreements have been finalized. "We are confident in our prospects and believe we will have significant updates for stockholders in the coming days and weeks," said Will Horne, Chief Executive Officer of Hyperscale Data.