Hyperscale Data Cuts ATM Offering Capacity by $200 Million to $100 Million
Hyperscale Data, Inc. (NYSE American: GPUS), an AI data center company, has amended its at-the-market sales agreement to cut the maximum amount of Class A common stock it can sell from $300 million to $100 million. The company says it has already raised approximately $49.8 million under the program.
- Hyperscale Data cut its ATM capacity from $300 million to $100 million, including shares already sold.
- The company has sold 121,827,841 shares for approximately $49.8 million in gross proceeds, about $0.41 per share.
- CEO Will Horne said the additional $200 million of capacity is not currently necessary and the cut will limit dilution.
- Preliminary estimates indicate the Michigan AI data center can support project debt financing of $100 million to $150 million.
- The Facility is intended to initially support 20 megawatts of critical compute capacity for a neocloud customer.
What changed in the ATM agreement
Hyperscale Data amended the At-the-Market Issuance Sales Agreement dated June 18, 2026, with Spartan Capital Securities, LLC, which acts as sales agent. The amendment lowers the aggregate amount that may be sold from $300,000,000 to $100,000,000 in shares of Class A common stock, par value $0.001 per share. The $100 million ceiling includes the shares already sold under the agreement.
According to the company, it has sold 121,827,841 shares of Common Stock under the ATM and raised approximately $49.8 million in gross proceeds. That works out to approximately $0.41 per share.
Management's reasoning
Will Horne, Chief Executive Officer of Hyperscale Data, said: "Based on our current capital plans, we do not believe the additional $200 million of ATM capacity is currently necessary." He described the reduction as a reflection of "disciplined capital management" while preserving financial flexibility for the company's AI data center strategy.
Horne also said the company believes its equity is significantly undervalued and that the $200 million reduction will limit dilution to its equity and is in the best interests of stockholders. The company added that it may evaluate capital markets options in the future as appropriate.
Michigan data center and debt financing plans
The company said its focus is on building out its Michigan AI data center, referred to as the Facility. The Facility is intended to initially support 20 megawatts of critical compute capacity for the company's neocloud customer.
Hyperscale Data intends to cover part of the buildout costs with debt financing. According to Horne, preliminary estimates on the existing buildout indicate that the Facility will support project debt financing between $100 million and $150 million.
Company background and planned divestiture
Through its subsidiary Sentinum, Inc., Hyperscale Data owns and operates a data center offering colocation and hosting services for emerging AI ecosystems and other industries. Another wholly owned subsidiary, Ault Capital Group, Inc. (ACG), is a hybrid private equity firm and operating company with interests across financial services, digital assets, industrial services, hospitality, defense technologies and other sectors.
Hyperscale Data currently expects the divestiture of ACG to occur in 2027. After that, the company says it would be an owner and operator of data centers supporting high-performance computing services, a holder of digital assets, and the parent of Omnipresent Robotics, LLC. The divestiture is to occur through a voluntary exchange of Series F Exchangeable Preferred Stock for ACG Class A and Class B common stock.
What it means for investors
The amendment reduces the volume of new shares the company can issue through this program, which the company says limits potential dilution for existing holders. The company points to project-level debt, rather than further equity sales, as the intended way to augment funding for the Michigan Facility. The company also noted that the press release is not an offer to sell securities.
