Strategy’s Bitcoin holdings drop by 47,000 coins, Saylor posts "HODL"
LAS VEGAS - Hyperscale Data, Inc. (NYSE American:GPUS) reported Tuesday that its Bitcoin treasury has grown to 267.6862 Bitcoin as of November 9, valued at approximately $75.25 million based on Bitcoin’s closing price of $104,720 that day. The company’s stock currently trades at $0.35 per share, with a market capitalization of approximately $116.27 million, according to InvestingPro data.
The company’s Bitcoin holdings represent about 66% of its market capitalization, based on the stock price at Monday’s close. The holdings include 44.0994 Bitcoin generated from mining operations and 223.5868 Bitcoin acquired through open market purchases, with 29.0900 Bitcoin added during the week ended November 9. InvestingPro analysis indicates GPUS operates with a significant debt burden and high price volatility, with a beta of 2.53 over the past five years.
Hyperscale Data has allocated an additional $47.25 million in cash for future Bitcoin purchases through its subsidiary Sentinum, Inc. The company is implementing a dollar-cost averaging strategy for these purchases to reduce exposure to short-term market volatility. This allocation comes despite the company’s challenging financial position, with a current ratio of 0.31 and a debt-to-equity ratio of 20.71 as of the latest quarter.
"Expanding our Bitcoin Treasury to $75.25 million underscores Hyperscale Data’s disciplined capital allocation strategy and our conviction in Bitcoin as a long-term store of value," said Milton "Todd" Ault III, Executive Chairman of Hyperscale Data, according to the company’s press release.
The company stated it aims to accumulate Bitcoin equal to 100% of its market capitalization as part of its broader $100 million digital asset treasury strategy. Hyperscale Data plans to deploy the remaining allocated cash into Bitcoin purchases over time, targeting to invest at least 5% of allocated cash each week, though actual amounts may vary depending on market conditions. According to InvestingPro data, the company is currently not profitable, with an EBITDA of -$11.52 million for the last twelve months and a revenue decline of 21.93%.
The company indicated it will continue to issue weekly reports every Tuesday detailing its Bitcoin holdings as it progresses toward its $100 million digital asset treasury target. Investors looking for deeper insights into GPUS’s financial health can access more than 15 additional ProTips and comprehensive financial metrics through InvestingPro, which rates the company’s overall financial health as "WEAK" with a score of 1.34.
In other recent news, Hyperscale Data, Inc. reported significant developments in its financial and operational activities. The company announced that its estimated total assets amount to $330 million, translating to approximately $1.02 per share of Class A common stock. Additionally, Hyperscale Data disclosed that its cash and Bitcoin holdings total $122 million, representing a substantial portion of its total assets and market capitalization. The company completed a $125 million at-the-market equity offering, which will be used to bolster its balance sheet and support growth initiatives.
Furthermore, Hyperscale Data’s Bitcoin treasury has reached approximately $73.5 million, accounting for about 61% of its market capitalization. The company also finalized an order for 2,000 new Bitmain S21 Pro Bitcoin miners, which are expected to double its Bitcoin mining production capacity. This purchase is part of an upgrade to replace older models at its Michigan data center. These recent developments highlight Hyperscale Data’s ongoing efforts to enhance its financial position and expand its Bitcoin mining operations.
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