Ault Alliance executive chairman buys $2k in shares

In a recent transaction on August 30, Milton C. Ault III, the Executive Chairman of Ault Alliance, Inc. (NYSE:AULT), acquired additional shares of the company. The transaction involved the purchase of 10,000 shares of common stock at a price of $0.2046 per share, totaling approximately $2,046.

This purchase increases Ault III's indirect ownership through Ault & Company, Inc., of which he is the CEO, to 90,229 shares of common stock. The transaction was disclosed in a filing with the Securities and Exchange Commission dated September 5, 2024.

Ault Alliance, Inc., formerly known as BitNile Holdings, Inc., Ault Global Holdings, Inc., and DPW Holdings, Inc., is based in Las Vegas, Nevada, and operates in the electronic components sector. The company's business address and mailing address are both located at 11411 Southern Highlands Parkway, Suite 240, Las Vegas, NV 89141.

The purchase by the Executive Chairman is a show of confidence in the company's prospects and adds to his already substantial holdings in both common and preferred stock. Following the transaction, Ault III also holds 11,545 shares of common stock directly and 110 shares of 13% Series D Cumulative Redeemable Perpetual Preferred Stock.

Shareholders and potential investors can access the details of the transaction through the SEC filing, which provides transparency about the executive's stock ownership and transactions.

In other recent news, Ault Alliance, Inc., now rebranded as Hyperscale Data, Inc., has seen significant developments. The company announced a strategic shift towards data center operations, with plans to expand its Michigan-based data center's capacity tenfold, contingent upon state regulatory approvals and funding. This move aligns with industry trends, as indicated by a Goldman Sachs report, predicting a surge in data center power demand driven by AI.

Shareholders approved the conversion of a 10% OID Convertible Promissory Note into common stock, a decision that can potentially influence the company's capital structure. The company also reported a revenue of $76.3 million for the first half of 2024 and total assets amounting to $271 million.

In a bid to streamline operations, Ault Alliance announced plans to issue special dividends of stock in non-AI data center subsidiaries to its stockholders. The company also sold 300 shares of Series C convertible preferred stock and accompanying warrants to an affiliated entity, Ault & Company, Inc., for a total of $300,000. These developments mark a significant step in the company's financial strategy and growth plans.

InvestingPro Insights

In light of the recent stock purchase by Milton C. Ault III, Executive Chairman of Ault Alliance, Inc., it's important for investors to consider the financial health and market performance of the company. According to the latest data from InvestingPro, Ault Alliance, Inc. has a market capitalization of approximately $8.2 million, which reflects the size of the company in the current market. The company's Price / Book multiple, as of the last twelve months leading up to Q2 2024, stands at 0.31, indicating that the stock may be trading at a low valuation relative to the company's book value.

However, Ault Alliance, Inc. has been grappling with significant challenges. An InvestingPro Tip highlights that the company operates with a substantial debt burden and may face difficulties in making interest payments, which is a critical aspect for investors to monitor. Moreover, the company's stock price has been quite volatile, and the price has experienced a notable decline over the last year, with a -99.31% return, indicating a period of underperformance that might concern investors looking at the stock's historical trajectory.

For investors seeking a deeper analysis, there are additional InvestingPro Tips available that provide further insights into Ault Alliance, Inc.'s financial position and market performance. These insights include considerations such as the company's cash burn rate, short-term obligations relative to liquid assets, and the lack of dividend payments to shareholders. For those interested in exploring these metrics further, there are 14 additional InvestingPro Tips that can be found by visiting the dedicated page for Ault Alliance, Inc. on InvestingPro.

While the recent share acquisition by the Executive Chairman may signal confidence in the company's future, investors should weigh this against the broader financial context provided by InvestingPro Data and Tips to make informed decisions.

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