Why did Hyperscale Data, Inc. defer Series E preferred dividends in Feb/March 2025, then declare them?

Hyperscale Data, Inc. deferred its Series E preferred dividends in February and March 2025, and subsequently declared them, as part of a strategy permitted by the terms of the Series E Preferred Stock. The company's certificate of designations allows for the deferral of up to 12 consecutive monthly dividend payments without them being considered missed, as these are cumulative dividends that accrue for future payment.

Specifically:

• February 2025: On February 18, 2025, Hyperscale Data declared the previously deferred monthly cash dividend for the month ended January 31, 2025. Concurrently, the Board elected not to declare the monthly cash dividend for the month ending February 28, 2025, effectively deferring it.
• March 2025: On March 20, 2025, the company declared the previously deferred monthly cash dividend for the month ended February 28, 2025. At the same time, it elected not to declare the monthly cash dividend for the month ending March 31, 2025, deferring it.
• April 2025: This pattern continued into April, with the company declaring the previously deferred dividend for March 31, 2025, on April 17, 2025, while also deferring the dividend for the month ending April 30, 2025.

According to Milton "Todd" Ault III, Executive Chairman of Hyperscale Data, the company anticipated deferring the monthly dividend by one month during the initial period. He stated that by paying the previously deferred dividends, the company aimed to demonstrate its creditworthiness to stockholders and its commitment to consistent dividend payments for both Series D and Series E Preferred Stock.