Las Vegas, October 16 (Reuters) / PRNewswire / —— Hyperscale Data, Inc. (New York Stock Exchange American Market: GPUS) is an artificial intelligence ( AI) data center company. The company announced today that its indirectly wholly-owned subsidiary Ault Global Commodities, Inc. ( AGC) has successfully completed the tokenization of 5,000 troy ounces of physical silver, which is an important milestone in the company's strategy to introduce real-world assets ( RWA) into blockchain-based financial infrastructure.
This batch of tokenized silver corresponds to physical spot silver and is currently listed under Ault Markets. Ault Markets is a software platform that can connect to decentralized exchanges (DEX) running on Ault Blockchain. This software platform is developed by another indirectly wholly-owned subsidiary of the company. The company expects that trading of this tokenized silver will begin within a few weeks. Each token represents 1 troy ounce of silver, and holders have the right to exchange for physical silver in groups of 100 tokens. All the physical silver corresponding to these tokens is stored in the secure vault at The Wyoming Reserve.
The company stated that this announcement marks an important step forward in its previously announced strategy, combining the holding of physical commodities with blockchain technology to create new opportunities for the development, distribution, and trading of tokenized RWA. The successful tokenization of 5,000 troy ounces of silver represents the next phase of this strategy, which goes beyond the acquisition of physical commodities and effectively transforms them into blockchain-based digital assets.
Unlike the company's existing holdings of other digital assets, this new tokenized silver product is backed by tangible physical commodities, and its economic exposure is linked to the spot silver market. The company believes that this approach has the potential to connect the traditional precious metals market with the emerging decentralized financial infrastructure.
On October 8th, Hyperscale Data announced the launch of a real-time access platform for invited only users to DEX via Ault Markets, and plans to introduce tokenized silver, gold, platinum, and other precious metals. With the initial 5,000 troy ounces of silver having been tokenized and listed, the company has achieved its first announced milestone in silver tokenization. Access to DEX via Ault Markets is still in the testing phase for invited only users at this time, and interested and qualified participants can apply for access through www.AultMarkets.com.
Hyperscale Data Executive Chairman Milton said, "Todd" Ault III stated: "We believe that this progress is an important milestone for both the AGC and Ault Blockchain ecosystems. Earlier this year, we informed our shareholders of our plans to acquire physical silver and develop the infrastructure to tokenize RWA. We have purchased the silver, established relationships for precious metal procurement and custody, and launched DEX access rights. We have now completed the tokenization of the initial 5,000 troy ounces of silver."
The company stated that, in accordance with the model of other decentralized exchanges, the listing decisions and transactions on DEX are not controlled by any centralized entity. The company intends to continue evaluating opportunities to tokenize more precious metals and other eligible RWA tokens, but this must comply with applicable laws, regulations, custody, and operational requirements.
In addition, the company believes that the increased adoption of RWA tokenization may bring more economic activity to the Ault Blockchain ecosystem, but it cannot guarantee future trading volumes, adoption rates, or financial results. Further details regarding the expected start time for silver trading, access requirements, and more tokenized assets are expected to be announced as the related plans progress.
For more information about Hyperscale Data and its subsidiaries, the company recommends that shareholders, investors, and other interested parties refer to the public documents and press releases available under the Investor Relations section on Hyperscale Data. The website address is hyperscaledata.com, or you may visit www.sec.gov.
Regarding Hyperscale Data, Inc.
Hyperscale Data operates a data center through Sentinum and Inc, providing hosting and management services for the emerging AI ecosystem as well as other industries. Another wholly-owned subsidiary of the company, Ault Capital Group, Inc. (ACG) is a hybrid private equity firm and operating company that acquires, finances, builds, and actively manages businesses in areas such as financial services, digital assets, industrial services, hospitality, defense technology, and more.
Hyperscale Data Currently, it is anticipated that the divestiture transaction of ACG ( Divestiture ) will occur in 2027. Upon completion of the divestiture, the company will become the owner and operator of data centers that support high-performance computing services, while also holding digital assets as well as the company's third wholly-owned subsidiaries, Omnipresent Robotics and LLC. Before the divestiture is completed, the company will continue to provide mission-critical products that support various industries through ACG and its wholly-owned and majority-owned subsidiaries, as well as strategic investments. These include the AI software platform, equipment leasing services, defense/aerospace, industrial, automotive, and hospitality businesses. In addition, ACG is actively engaged in private lending and structured financing through its licensed lending subsidiaries Ault Lending and LLC. Hyperscale Data is headquartered at 190 Room 11411, Southern Highlands Parkway Las Vegas, Nevada, with the postal code 89141.
On December 23, 2024, the company issued 1 million newly designated Series F exchangeable preferred stocks (Series F Preferred Stock) to all common stockholders and holders of Series C preferred stocks, based on the converted terms. The spin-off transaction will be completed through a voluntary exchange of Series F preferred stocks for Class A common stocks and Class B common stocks of ACG (collectively referred to as "ACG shares"). The company reminds shareholders that only those who agree to surrender the aforementioned shares within this exchange offer and have not properly withdrawn their Series F preferred stocks are entitled to receive ACG shares upon the occurrence of the spin-off, and thereby become shareholders of ACG.
Forward-looking Statements
This press release contains “forward-looking statements” as defined by Section 27A of the Securities Act of 1933 (as amended) and Section 21E of the Securities Exchange Act of 1934 (as amended). Such forward-looking statements typically include projections, assumptions, or references to future events or conditions, and use words such as “believes,” “plans,” “expects,” “projects,” “estimates,” “anticipates,” “intends,” “strategies,” “future,” “opportunities,” “may,” “will,” “should,” “can,” “potential,” and similar phrases. Statements that are not historical facts are considered forward-looking statements. Forward-looking statements are based on current beliefs and assumptions, but these beliefs and assumptions involve risks and uncertainties.
Forward-looking statements are only valid as of the date they are made, and the company assumes no obligation to publicly update any such statements due to new information or future events. Due to various factors, actual results may differ significantly from those contained in any forward-looking statements. Additional information that may affect the company's business and financial results, including potential risk factors, is included in the documents submitted by the company to the U.S. Securities and Exchange Commission, including but not limited to the company's 10-K, 10-Q, and 8-K forms. All documents can be found at www.sec.gov as well as on the company's website at hyperscaledata.com.
