Form 4: Ault III Reports Hyperscale Data Holdings & Acquisition

Milton C. Ault III and Ault & Company, Inc. filed a Form 4 detailing their beneficial ownership in Hyperscale Data, Inc., including an acquisition of Series H Convertible Preferred Stock.

Summary

• Milton C. Ault III, Executive Chairman and 10% Owner of Hyperscale Data, Inc., and Ault & Company, Inc. (also a 10% owner), reported beneficial ownership of various securities.
• On September 2, 2025, Ault & Company, Inc. acquired 4,000 shares of Series H Convertible Preferred Stock, each with a stated value of $1,000.
• Ault & Company, Inc. beneficially owns 50,000 shares of Series C Convertible Preferred Stock and 960 shares of Series G Convertible Preferred Stock, each with a stated value of $1,000.
• Ault & Company, Inc. also beneficially owns 422,337 Series C Warrants (exercise price $118.3875), 162,217 Series G Warrants (exercise price $5.918), and 54,498 October 2023 Warrants (exercise price $160.7375).
• Ault & Company, Inc. beneficially owns 4,234,561 shares of Class B Common Stock, and Milton C. Ault III directly owns 346 shares of Class B Common Stock.
• As of September 4, 2025, the conversion price for Series H, C, and G Preferred Stock was $0.419475 per share of Class A Common Stock, allowing each preferred share to convert into approximately 2,383.93 shares of Class A Common Stock.
• Conversion prices are subject to adjustment for future Class A Common Stock issuances at lower prices, stock splits, or similar events.
• Series H, C, and G Convertible Preferred Stock and Class B Common Stock have no expiration date.
• Warrants have a five-year term from issuance and become exercisable after six months.

Sentiment

Score: 8

Explanation: The filing reports a significant acquisition of preferred stock by a key insider and affiliated entity, totaling $4 million in stated value. This substantial investment signals strong insider confidence and alignment, which is a significant positive for the company's outlook.

Positives

• Ault & Company, Inc., an entity controlled by Executive Chairman Milton C. Ault III, acquired 4,000 shares of Series H Convertible Preferred Stock, demonstrating increased insider investment and confidence.
• Significant beneficial ownership by Milton C. Ault III and Ault & Company, Inc. across various security types indicates strong insider alignment and a substantial vested interest in Hyperscale Data, Inc.'s future.

Risks

• Conversion prices for preferred stock are subject to adjustment if Class A Common Stock is issued at a price lower than the current conversion price, potentially leading to dilution for existing Class A shareholders.

Future Outlook

The filing does not provide explicit forward-looking statements or guidance, focusing instead on current beneficial ownership and an acquisition of convertible securities.

Management Comments

• Mr. Ault, Chief Executive Officer of Ault & Co., is a director of the Issuer.
• For purposes of Section 16 of the Exchange Act, Ault & Co. may be deemed a director by deputization by virtue of its representation on the Board of Directors of the Issuer.

Industry Context

This Form 4 filing is a company-specific disclosure of insider ownership and does not provide broader industry trends or context.

Related Party Transactions

• Milton C. Ault III, as CEO of Ault & Company, Inc., is deemed to beneficially own shares held by Ault & Company, Inc., establishing a related party relationship.

Stakeholder Impact

• Shareholders: Provides transparency regarding significant insider holdings and an acquisition, signaling confidence. It also highlights potential future dilution from convertible securities.
• Management: Confirms the significant stake and influence of the Executive Chairman and his affiliated entity, reinforcing their vested interest in the company's performance.

Key Dates

Recommendation

The acquisition of 4,000 shares of Series H Convertible Preferred Stock by Ault & Company, Inc., an entity controlled by Executive Chairman Milton C. Ault III, represents a significant insider investment of $4 million. This substantial commitment, coupled with existing large holdings of various convertible securities and Class B common stock, signals strong insider confidence and alignment with shareholder interests. Such a significant capital infusion and vested interest from a key executive and 10% owner is a strong positive indicator for the company's future prospects, warranting a 'strong buy' recommendation.

Keywords

Hyperscale Data, GPUS, Milton C. Ault III, Ault & Company, Inc., Form 4, Beneficial Ownership, Convertible Preferred Stock, Warrants, Class B Common Stock, Insider Ownership, SEC Filing