LAS VEGAS - Ault Alliance, Inc. (NYSE American: AULT), a diversified holding company, announced today it is proceeding with a special preferred dividend tied to its AI data center and Bitcoin mining operations. The company aims to issue a new class of preferred stock to common and Series C preferred stockholders, distributing a percentage of profits from its subsidiary Sentinum, Inc.
The dividend rate for the preferred stock, with a stated value of $1.00 per share, could range from 0.25% to 25% of its face value, depending on the Board of Directors' final decision. However, the exact criteria and regulatory approvals for the dividend are still pending.
The initiative, according to Milton "Todd" Ault III, Executive Chairman and Founder of Ault Alliance, is designed to directly involve stockholders in the profits of Sentinum. The company operates approximately 18,000 Bitcoin mining units and is expanding its AI data center business, with plans to evolve its Bitcoin operations to include hosting services for third-party miners.
Ault Alliance will seek shareholder approval to increase the number of authorized preferred shares and intends to list the new preferred stock on a national exchange, subject to shareholder and regulatory approval.
The information is based on a press release statement from Ault Alliance. InvestingPro Insights
As Ault Alliance, Inc. (NYSE American: AULT) explores avenues to reward its shareholders with a special preferred dividend from its AI data center and Bitcoin mining operations, several metrics and tips from InvestingPro could offer valuable insights into the company's financial health and stock performance.
InvestingPro data highlights a notably low Price / Book multiple of 0.17 as of the last twelve months ending Q1 2024, suggesting that the company’s stock is trading below its book value. This metric might attract investors looking for undervalued stocks, particularly in the context of Ault Alliance's recent strategic moves.
Despite the company's efforts to expand its operations and engage shareholders, Ault Alliance is grappling with significant challenges. The company's market capitalization stands at a modest 10.22 million USD, and it has experienced a 1-week price total return of -9.84%, indicating recent market skepticism. Additionally, the company's stock price has plummeted by -99.83% over the last year, marking a substantial decrease in shareholder value.
InvestingPro Tips shed light on critical concerns for potential investors. Ault Alliance operates with a significant debt burden and may face difficulties making interest payments on its debt. Moreover, the company does not pay dividends to shareholders, which may deter income-focused investors. It's important to note that these are just a couple of the 16 additional tips available on InvestingPro, which can be accessed at https://www.investing.com/pro/AULT.
For investors considering Ault Alliance as part of their portfolio, these insights may be particularly relevant. To delve deeper into the comprehensive analysis that InvestingPro offers, users can take advantage of an additional 10% off a yearly or biyearly Pro and Pro+ subscription with the coupon code PRONEWS24.
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