Hyperscale Data Converts Bitcoin into Capital for Michigan AI Data Center
Hyperscale Data Inc., a company involved in AI data center development, has turned to its bitcoin reserve for funding. The company has converted approximately 100 BTC into capital to cover infrastructure costs and long-lead equipment related to a master services agreement with an unnamed neo-cloud AI provider.
The agreement spans 10 years, covers nearly 20 megawatts of critical AI compute capacity, and includes two five-year extension options. This could potentially generate over $1.2 billion in revenue if extended to the maximum term, or more than $3 billion including additional options for up to 32 megawatts.
To support its funding strategy, Hyperscale Data paired this bitcoin sale with a new credit facility, enabling it to borrow against its remaining holdings at variable interest rates expected between 4.5% and 5%. The company plans to maintain significant exposure to the cryptocurrency while generating cash flow from its Michigan facility.