Core Viewpoint - Hyperscale Data, Inc. plans to issue a special one-time dividend in the form of a 10% Series E Cumulative Redeemable Perpetual Preferred Stock to common stockholders and holders of Series C Convertible Preferred Stock, reflecting the company's commitment to reward shareholders despite changes in its dividend strategy [1][2]. Group 1: Dividend Announcement - The company will issue a special one-time dividend of Series E Preferred Stock with a stated value of $25 per share and a monthly cash dividend at a 10% annualized rate [1]. - The issuance of the special dividend is subject to regulatory approvals, including board and NYSE American approval, and compliance with applicable laws and market conditions [1]. - The company will provide further details regarding record and dividend dates once the necessary approvals are obtained [1]. Group 2: Strategic Shift - The company has shifted its focus from Bitcoin mining to colocation and hosting services for artificial intelligence and high-performance computing sectors [2]. - The decision to issue a cash dividend instead of a Bitcoin dividend was made after exploring various options, with the new dividend representing approximately 16% of the face value of the Bitcoin mined since early 2021 [2]. - The leadership emphasizes that the economic substance of the dividend remains consistent with the company's commitment to shareholders, despite the change in form [2]. Group 3: Company Overview - Hyperscale Data is a diversified holding company that acquires undervalued businesses and disruptive technologies, operating a data center for Bitcoin mining and offering colocation and hosting services [4]. - The company also provides mission-critical products across various industries, including social gaming, defense, automotive, and medical sectors, and is involved in private credit and structured finance through a licensed lending subsidiary [4].
Hyperscale Data Plans to Issue a $16.25 Million Stated Value Special Dividend of 10% Series E Cumulative Redeemable Perpetual Preferred Stock