Hyperscale Data closes $10M convertible note, with up to $27M on the table
What's the deal? Hyperscale DataDealroom has a profile for this one. Try Dealroom → (NYSE American: GPUS) has raised $10 million through a convertible promissory note it issued on November 6, 2026, to an unnamed institutional investor. The note carries a principal of $10,810,810.81, reflecting a 7.5% original-issue discount, and accrues 8% annual interest.
What's the structure? The deal is the first tranche of a larger agreement covering convertible notes with aggregate principal of up to $27,027,027.03. A second note, with a $5 million purchase price, is planned for around November 16, and a third worth $10 million could follow within three months by mutual agreement.
The fine print: The notes convert into Class A common stock at the lower of $0.30 or a 10% discount to a trailing price, subject to a $0.1025 floor. Interest jumps to 18% on default, and the maturity date of February 5, 2027 extends to May 5 only with stockholder approval.
Why now? The raise follows Hyperscale Data's suspension of an at-the-market stock offering that had brought in about $50.6 million. The company is also seeking separate long-term, non-dilutive financing for its Michigan AI data-center campus — a lender search that is not yet a committed facility.
What could go wrong? The convertible structure leaves shareholders exposed to dilution, with conversion terms that could trigger substantial share issuance. Conversion itself depends on NYSE American approving the company's listing application, and the company cannot issue shares exceeding 19.99% of outstanding stock without stockholder approval.
The signal: The financing mix underscores near-term funding pressure at a company leaning on short-dated, high-cost debt. It lands in a sector where data-center borrowing has surged — but lenders and investors have grown warier of AI-related debt as financing costs rise.
Read more: kalkine.com
Image credit: Idaho National Laboratory
