Hyperscale Data sold approximately 100 Bitcoin and pledged its remaining holdings as collateral on a new credit facility, directing the money into its Michigan AI data center campus. CEO William Horne said the approach is intended to reduce stockholder dilution by lowering reliance on equity financing. The campus underpins a contract expected to generate more than $1.2 billion in revenue if its full term is exercised.
Hyperscale Data, Inc. (NYSE American: GPUS) is redirecting part of its Bitcoin treasury into construction of its Michigan AI data center campus. The company sold approximately 100 Bitcoin and is putting the proceeds directly into the campus development, according to a press release issued July 30, 2026.
It also established a Bitcoin-backed credit facility that uses its remaining Bitcoin as collateral. Variable rates on the facility are expected to range from approximately 4.5% to 5.0%.
The contract behind the Michigan campus
The campus is tied to a previously announced master services agreement with a neo-cloud AI infrastructure provider. That agreement runs an initial 10-year term with two five-year extension options exercisable by the customer.
Its initial scope covers approximately 20 megawatts of AI compute capacity and is expected to generate more than $1.2 billion in revenue if the full term is exercised. The customer also holds an option for an additional 32 megawatts, which would bring total expected contract revenue above $3.0 billion if exercised within the first two years and extended through both options.
Selling Bitcoin instead of issuing stock
Executive Chairman Milton "Todd" Ault III said the company had accumulated approximately $71 million in Bitcoin through mining operations and treasury management, calling it "a significant source of financial flexibility."
Horne, the chief executive, said the strategy is intended to reduce stockholder dilution by lowering how much the company relies on equity financing. He described the move as shifting one balance sheet asset for another.
Still, it plans to maintain meaningful Bitcoin ownership while continuing to evaluate the balance among holding, borrowing against, and selectively selling Bitcoin based on market conditions and capital needs.
Hyperscale Data also expects to divest its subsidiary Ault Capital Group, Inc. in the second quarter of 2027, after which it would focus solely on data center operations and digital asset holdings.
Source: Investing.com
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