Hyperscale Data, Inc. (NYSE:GPUS)  shares fell sharply in after-hours trading Thursday after the company announced a $300 million at-the-market equity offering.

GPUS closed Thursday’s regular session at $0.36, down 9.78%. In after-hours trading, shares fell to $0.26, down 27.58%.

Hyperscale Data is an artificial intelligence data center company with operations spanning Bitcoin (CRYPTO: BTC) mining, colocation and AI infrastructure through its subsidiary Sentinum, Inc.

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Offering Details Pressure Shares

An at-the-market, or ATM, offering allows a company to sell newly issued shares into the open market from time to time at prevailing market prices instead of through a single fixed-price sale.

According to the company’s prospectus supplement filed Thursday, Hyperscale Data may sell up to $300 million of Class A common stock through Spartan Capital Securities, which will act as sales agent.

The company said it intends to use most of the proceeds, if any, to further develop its Michigan and Montana data facilities, acquire more Bitcoin and purchase precious metals including gold, silver and copper. A smaller portion may be used for working capital and general corporate purposes.

The filing also noted that investing in the company’s securities involves a high degree of risk and that future share sales could affect the market price of its Class A common stock.

Earlier Thursday, Hyperscale Data also announced monthly dividends on preferred shares, including its 13% Series D issue paying about 27 cents per share and its 10% Series E issue paying about 21 cents per share. The record date is June 30, with payment scheduled for July 10.

The company also said it remains in advanced negotiations through Alliance Cloud Services for a master services agreement to deliver 20 megawatts of AI compute capacity at its Michigan data center.

Trading Metrics, Technical Analysis

Hyperscale Data has a market capitalization of approximately $164.85 million.

The stock has traded between a 52-week high of $2.23 and a 52-week low of $0.11.

Benzinga Edge Stock Rankings indicate GPUS has positive short-term, medium-term and long-term price trends.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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