Ault Alliance, Inc. (NYSE American: AULT), a diversified holding company (“Ault Alliance,” or the “Company”), today announced it has obtained board approval for, and will pursue the issuance of, a special preferred Artificial Intelligence (“AI”) data center and Bitcoin mining dividend for stockholders of the Company’s common stock and Series C preferred stock. For each share of common stock beneficially owned, stockholders will receive one share of the newly designated preferred stock. This class of preferred shares is anticipated to pay a percentage of the profit from both the AI data center business and Bitcoin mining operations by the Company’s subsidiary Sentinum, Inc. (“Sentinum”) in cash as a special preferred dividend. The future dividend amount would be determined by the Board of Directors of the Company, subject to certain criteria that remain to be determined by the Board of Directors as well as regulatory approval. In addition, the Company reserves the right, in its sole discretion, to abandon the proposed dividend at any time prior to implementation.
The Company notes that the preferred dividend may range from 0.25% of the face value of the preferred stock, which is $1 per share, up to 25% of the face value of the preferred stock, subject to final approval from the Board of Directors.
The Company will seek stockholder approval to increase the number of authorized preferred shares. This transaction is meant for stockholders as of a to-be-determined future record date. The Company would seek to have this new class of preferred stock trade on a national exchange, pending stockholder approval. The new preferred stock is anticipated to have a stated value of $1.00 per share.
Milton “Todd” Ault III, Executive Chairman and Founder of the Company, stated, “This initiative has been important to the Company for a considerable amount of time, and we are committed to rewarding our stockholders. We are focusing on the logistics of accomplishing this dividend and are excited with the progress Sentinum, and the Company as a whole, have made in regard to its Bitcoin mining operations. This new preferred stock will reward stockholders with a percentage of the profits and future cash flows to be determined by the Board of Directors. We believe this is a unique opportunity to allow stockholders the opportunity to participate directly in one of our platform companies, Sentinum.”
