Hyperscale Data sold 100 bitcoin to fund the construction of its AI data center campus in Michigan, US.
The company also opened a new credit facility to fund the Michigan campus build. This facility allows Hyperscale Data to borrow against its remaining bitcoin holdings at variable rates expected to range from 4.5% to 5%.
Hyperscale Data's reported bitcoin holdings prior to monetizing 100 BTC.
Management stated that the credit facility structure provides access to non-equity capital while reducing dependence on short-term share issuance. Executive Chairman Milton 'Todd' Ault III said deploying bitcoin and borrowing against the treasury offered a more attractive source of capital than relying mainly on additional equity at the company's current valuation.
Hyperscale Data intends to preserve meaningful exposure to bitcoin. CEO William Horne described the approach as shifting one balance-sheet asset into another.
Revenue Projections and Capacity
The Michigan campus is expected to produce recurring cash flow as new AI capacity comes online. A customer of Hyperscale Data holds an option for an additional 32 megawatts.
If the 32-megawatt option is exercised within the first two years and extended across the full contract period, total expected revenue for Hyperscale Data would rise above $3 billion.
Hyperscale Data Inc. (NYSE: GPUS) is currently trading at $0.12 U.S. per share.
