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Hyperscale Data valued below its Bitcoin holdings amid liabilities
The company reported 1,106.0467 Bitcoin as of July 27, but its disclosed liabilities, a preferred-stock liquidation preference, and pledged and restricted crypto assets limit value for common holders.
Hyperscale Data said its wholly owned subsidiaries, Sentinum and Ault Capital Group, held 1,106.0467 Bitcoin as of July 27. Using a Bitcoin closing price of $64,784, the company valued the position at about $71.7 million, while its market capitalization was around $56.4 million after the July 28 close, leaving a roughly $15 million gap before valuing other businesses or data centers.
CryptoSlate noted that the comparison is not the same as net asset value because the company’s claims against the treasury include more than just standard GAAP liabilities. A May 18 quarterly filing covering March 31 reported $196.0 million of current liabilities and $216.7 million of total liabilities, plus a $90.1 million preferred-stock liquidation preference within stockholders’ equity, described as a senior claim separate from the GAAP liabilities figure.
The filing also reported $16.7 million of restricted crypto assets, including Bitcoin pledged as collateral for convertible notes issued to JGB entities. CryptoSlate said that because the restricted portion of the July 27 Bitcoin holdings was not fully disclosed, investors cannot treat the entire $71.7 million as unencumbered value available to common shareholders.
The report added that Hyperscale Data opened an at-the-market program on June 18 that allows it to sell up to $300 million of common stock, with no minimum sale amount specified in the prospectus supplement. The actual number of shares sold and proceeds through July 28 were not disclosed in the filings reviewed, which could change how each share’s claim on the Bitcoin treasury evolves.
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