Hyperscale Data just dropped a bombshell announcement! They’re launching a massive $125 million stock offering, but it’s not just for traditional growth. A significant portion is earmarked for Bitcoin and XRP. What does this mean for the future of digital assets and their ambitious data facility expansion?
Hyperscale Data, a diversified holding company, has officially announced the establishment of an “at-the-market” equity offering program, through which it plans to sell shares of its common stock. This strategic financial maneuver aims to generate up to $125 million in gross proceeds, signaling a significant move to bolster its operational capabilities and investment portfolio.
The common stock shares will be offered to the market via Wilson-Davis & Co., Inc., acting as the designated sales agent for the program. This “at-the-market” offering structure allows for flexible sales transactions, including those executed through ordinary brokers on the NYSE American or at prevailing market prices, providing the company with adaptability in its capital-raising efforts.
A substantial portion of the net proceeds from this offering is strategically allocated towards the acquisition of Bitcoin, underscoring Hyperscale Data’s commitment to digital assets. Furthermore, a significant amount will be dedicated to advancing the development of its Michigan data facility, enhancing its infrastructure for high-performance computing services and digital asset mining.
Beyond its primary allocations, Hyperscale Data also intends to utilize a smaller segment of the proceeds to acquire XRP, the digital asset developed by Ripple Labs, which operates natively on the XRP Ledger. Remaining funds will support working capital and general corporate purposes, potentially including the repayment, refinancing, or repurchase of future indebtedness or capital stock, providing financial flexibility.
Potential investors interested in these securities are advised to consult the shelf registration statement (File No. 333-288778) and accompanying prospectus, which became effective on August 29, 2025. These crucial documents, providing comprehensive information about the company and the offering, are freely accessible via EDGAR on the U.S. Securities and Exchange Commission’s website, or directly from Wilson-Davis & Co., Inc.
Through its wholly-owned subsidiary, Sentinum, Inc., Hyperscale Data actively owns and operates a state-of-the-art data center. This facility is pivotal for its operations, engaging in digital asset mining and providing crucial colocation and hosting services, particularly catering to the burgeoning artificial intelligence (AI) ecosystems and other demanding industries.
The company’s other wholly-owned subsidiary, Ault Capital Group, Inc. (ACG), functions as a diversified holding company focused on acquiring undervalued businesses and disruptive technologies globally. Hyperscale Data anticipates the divestiture of ACG in the first quarter of 2026, a move expected to streamline its focus towards being a dedicated owner and operator of data centers and a holder of digital assets.
This impending divestiture involves the issuance of Series F Exchangeable Preferred Stock to common stockholders and Series C Preferred Stock holders. The transaction will unfold through a voluntary exchange offer, enabling holders of Series F Preferred Stock to surrender their shares in return for Class A and Class B Common Stock of ACG, effectively making them stockholders of ACG post-divestiture.