Hyperscale Data, Inc. (GPUS) stock is trading higher on Monday after the company announced a $200 million reduction in its at-the-market (ATM) stock offering program.

The AI data center company said Monday it amended its June 18 agreement with Spartan Capital Securities LLC. The amendment reduces the maximum offering size from $300 million to $100 million.

The revised limit includes shares already sold under the program.

Hyperscale Data Moves to Limit Share Dilution

Hyperscale Data has sold approximately 121.8 million shares through the ATM program, raising $49.8 million in gross proceeds at an average price of 41 cents per share.

The company said the reduction reflects its current capital needs and aims to limit potential shareholder dilution.

CEO Will Horne said the company no longer considers the additional $200 million in offering capacity necessary.

Horne also said management believes the company's shares are significantly undervalued. The company plans to maintain financial flexibility while focusing on its AI data center expansion.

Michigan AI Data Center Expansion

Hyperscale Data is developing an AI data center in Michigan to initially support 20 megawatts of critical computing capacity for a neocloud customer.

The company plans to supplement its construction costs with debt financing rather than relying solely on equity issuance.

Preliminary estimates suggest the Michigan facility could support between $100 million and $150 million in project debt financing.

However, the company has not announced a finalized financing agreement.

Hyperscale Data said it may explore additional capital market opportunities as needed to support its long-term growth strategy.

GPUS Price Action: Hyperscale Data shares were up 1.98% at $0.16 at the time of publication on Monday, according to market data. The stock remains down 92.57% over the past 12 months.