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Hyperscale Data, Inc., a Delaware-based electronic components manufacturer with a market capitalization of $12.46 million, has filed an amendment to its Certificate of Designation for Series B Convertible Preferred Stock, as per an 8-K filing with the Securities and Exchange Commission (SEC) on April 25, 2025. According to InvestingPro data, the company’s stock has declined nearly 80% over the past year, trading near its 52-week low of $1.90.
The company, which trades on the NYSE American under the ticker GPUS and GPUS PD for its Class A Common Stock and Series D Cumulative Redeemable Perpetual Preferred Stock respectively, has made a significant adjustment to the terms related to the conversion price of its Series B Convertible Preferred Stock. With a concerning current ratio of 0.27 and total debt of $120.3 million, InvestingPro analysis reveals significant challenges in meeting short-term obligations.
According to the filing, the amended "Conversion Price" will be the greater of a fixed "Floor Price" of $0.40 per share, which remains unadjusted for stock splits or similar transactions, or 75% of the company’s lowest Volume-Weighted Average Price (VWAP) on any trading day during the five days preceding the conversion date. However, the conversion price will not exceed the "Maximum Price" of $10.00 per share, which is subject to adjustments for stock dividends, stock splits, stock combinations, and other similar transactions.
This change comes following a unanimous board decision on April 22, 2025, and the subsequent filing of the Certificate of Amendment with the Secretary of State of Delaware on April 23, 2025, which took effect immediately.
The adjustment to the conversion terms follows a previously reported Securities Purchase Agreement with SJC Lending, LLC, where Hyperscale Data agreed to sell up to 50,000 shares of Series B Convertible Preferred Stock for a total purchase price of up to $50 million, as disclosed in an 8-K filing on April 1, 2025.
Investors should note that this news is based on an official SEC filing, ensuring the information is accurate and reliable. The adjustment in the conversion terms could influence the future financial strategy of Hyperscale Data, Inc. and the interests of its investors. While current market conditions have impacted the stock price, InvestingPro analysis suggests the company may be undervalued at current levels. Subscribers can access 14 additional ProTips and comprehensive financial metrics to make more informed investment decisions.
In other recent news, Hyperscale Data, Inc. has been active with several financial maneuvers. The company issued a $1.65 million convertible promissory note to Orchid Finance LLC, which includes a 10% original issue discount and matures on September 30, 2025. Additionally, Hyperscale Data issued a $110,000 convertible note to Jorico LLC, also maturing in 2025, with specific conversion conditions tied to stock price and NYSE approval. Furthermore, the company secured up to $50 million in equity financing to expand its Michigan data center, emphasizing the development of infrastructure for high-density workloads.
In another strategic move, Hyperscale Data announced a one-time financial gain of $17.5 million from the deconsolidation of its subsidiary, Avalanche International, Inc., enhancing its balance sheet by reducing liabilities. The company’s shareholders recently approved the conversion of Series G Preferred Stock into Class A Common Stock and warrants, a decision that aligns with Hyperscale Data’s ongoing capital structure adjustments. These developments reflect the company’s efforts to streamline its financial operations and focus on its core data center business.
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