Z Squared Closes Paradox Data Acquisition, Issues $5M Series A Preferred at $7.45 Conversion Price
ZSQR is trading near its 52-week low of $2.755 (0.2% above the low).
Summary
Z Squared closed its Paradox Data acquisition, paying entirely in newly issued Series A Preferred Stock with a $7.45 conversion price — far above the current $2.76 share price. The deal brings an energized 8 MW Arkansas campus and a 150+ MW development target, but power assignment consent and all development milestones remain pending.
Key Events · M&A and Partnerships · ZSQR
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Paradox Data Acquisition Closed
On September 8, 2026, Z Squared completed its 100% acquisition of Paradox Data LLC, gaining the Union County Campus in El Dorado, Arkansas with 8 MW of existing interruptible electric service and a development target of 150+ MW of AI-ready capacity.
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$5M Series A Preferred Issued
As closing consideration, 5,000 shares of Series A Convertible Preferred Stock with $5,000,000 aggregate stated value were issued to the seller. The conversion price is $7.45 per share — approximately 2.7x the current $2.76 market price.
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Preferred Stock Terms Disclosed
The Series A Preferred carries an 8.0% cumulative dividend (payable in cash or in kind), a 4.99% beneficial ownership limitation (expandable to 9.99%), and a 10,594,979 share exchange cap equal to 19.99% of pre-LOI outstanding shares under Nasdaq Rule 5635.
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Up to $20M in Milestone Payments Remain
The company remains obligated to pay up to four additional milestone payments totaling up to $20 million in additional Series A Preferred Stock upon achievement of specified development milestones. No milestone has been achieved as of the filing date.
Analysis · ZSQR · Crypto Assets
The completed acquisition of Paradox Data on September 8, 2026, brings Z Squared its first owned, energized campus with 8 MW of existing power and a development target of 150+ MW. Payment came in the form of 5,000 shares of Series A Convertible Preferred Stock with a $5 million stated value. Newly disclosed terms include a $7.45 conversion price — nearly 2.7x the current $2.76 share price — an 8% cumulative dividend, and a 10.6 million share exchange cap. However, Entergy's consent to assign the electric service agreement has not yet been obtained, and no development milestones have been achieved. With the stock trading near its 52-week low, the conversion price sits far above the market, meaning the preferred stock is unlikely to convert near-term unless the share price recovers substantially.
How filings like this one have moved
In the 30 days to Oct 2, 2026, 36.3% of the 1065 measured filings Wiseek scored 8 moved their stock by 5% or more by the next session's close. The median move was -0.57%. These are measured outcomes after filings of this importance, not a forecast for this one.
Measured one observation per ticker per day, after exclusions. Current figures: Filing Impact Tracker · open dataset
At the time of this filing, ZSQR was trading at $2.76 on NASDAQ in the Crypto Assets sector, with a market capitalization of approximately $146M. The 52-week trading range was $2.76 to $21.41. This filing was assessed with neutral market sentiment and an importance score of 8 out of 10.