Form 4: Hyperscale Data Executive Boosts Stake

Hyperscale Data's Executive Chairman, Milton C. Ault III, and Ault & Company, Inc. significantly increased their beneficial ownership of common and preferred stock through open market purchases.

Summary

• Milton C. Ault III, Executive Chairman and 10% owner of Hyperscale Data, Inc., directly acquired 60,000 shares of common stock at a volume-weighted average price of $0.1924 on December 30, 2025.
• Ault & Company, Inc., where Mr. Ault serves as CEO, acquired 500,000 shares of common stock at $0.1894 on December 30, 2025, and an additional 1,000,000 shares at $0.1829 on December 31, 2025.
• Mr. Ault also directly purchased 48,800 shares of common stock at $0.1837 on December 31, 2025.
• Additionally, Mr. Ault directly acquired 33 shares of 13% Series D Cumulative Redeemable Perpetual Preferred Stock at $22.83 on December 29, 2025.
• Following these transactions, Mr. Ault directly beneficially owns 268,800 shares of common stock and 149 shares of preferred stock.
• Through Ault & Company, Inc., Mr. Ault indirectly beneficially owns 2,500,005 shares of common stock.
• All common stock purchases were made in open market transactions, with price ranges provided for each transaction date.
• The transactions were made pursuant to a contract, instruction, or written plan for the purchase or sale of equity securities of the issuer that is intended to satisfy the affirmative defense conditions of Rule 10b5-1(c).

Sentiment

Score: 8

Explanation: The substantial insider buying by a key executive and major shareholder, including both common and preferred stock, signals strong confidence in the company's prospects and potential undervaluation. This is a highly positive indicator for investors.

Positives

• Significant insider buying by Executive Chairman Milton C. Ault III and Ault & Company, Inc., totaling 1,608,800 shares of common stock and 33 shares of preferred stock, demonstrates strong confidence in the company's future.
• The purchases were executed under a Rule 10b5-1(c) plan, indicating a pre-planned investment strategy by management.

Negatives

• The relatively low purchase prices for common stock (ranging from $0.1814 to $0.2092) could suggest a depressed stock valuation at the time of purchase.

Future Outlook

The filing does not provide explicit forward-looking statements or guidance, but the significant insider purchases may implicitly signal management's positive outlook on the company's future performance and potential undervaluation.

Management Comments

• The reporting person undertakes to provide, upon request by the SEC staff, the issuer, or a security holder of the issuer, full information regarding the number of shares purchased at each price.
• Milton C. Ault, III, is the Chief Executive Officer of Ault & Company, Inc. ("Ault & Co.") and is deemed to beneficially own the shares held by Ault & Co.
• 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 insider buying activity by a key executive and significant shareholder in Hyperscale Data, Inc. suggests a belief in the company's value proposition within the data center or high-performance computing industry, potentially indicating an expectation of future growth or undervaluation relative to peers.

Related Party Transactions

• The reported transactions are related party dealings as they involve the Executive Chairman and a 10% owner of the issuer, Milton C. Ault III, and Ault & Company, Inc., which is controlled by Mr. Ault.

Stakeholder Impact

• Shareholders are likely to view the significant insider buying as a positive signal, potentially increasing confidence in the company's stock and its future performance.
• Management and employees may perceive increased commitment from leadership, potentially boosting morale and alignment with company goals.

Next Steps

• The reporting person has undertaken to provide full information regarding the number of shares purchased at each price upon request by the SEC staff, the issuer, or a security holder of the issuer.

Key Dates

Recommendation

The substantial and broad-based insider buying by Executive Chairman Milton C. Ault III and Ault & Company, Inc. across both common and preferred stock is a strong signal of management's conviction in Hyperscale Data, Inc.'s future value. Such significant investment by those with intimate knowledge of the company often precedes positive developments or indicates a belief that the stock is undervalued, making it a compelling 'buy' signal for seasoned investors.

Keywords

Hyperscale Data, GPUS, Milton C. Ault III, Ault & Company, Insider Buying, Form 4, Beneficial Ownership, Common Stock, Preferred Stock, Executive Chairman, 10% Owner, Rule 10b5-1