Hyperscale Data Cuts Bitcoin Holdings to Fund AI Data Center

Hyperscale Data Inc. (NYSE American: GPUS) revealed a significant reduction in its Bitcoin holdings, with shares slipping on Tuesday. As of October 4, the company held 219.96 BTC valued at approximately $19 million, a sharp decline from the 1,106 BTC worth $71.7 million reported in July. The decrease followed the sale of about 65 BTC for $5.1 million in August, with proceeds redirected to fund the construction of its Michigan AI data center.

The company's stock price reflected the downturn, trading at $0.1625 on October 6, down 1.34% from the previous session. GPUS opened at $0.1600 and fluctuated between $0.1599 and $0.1659. The latest Bitcoin disclosure marks a strategic shift in Hyperscale Data's capital allocation, prioritizing its AI infrastructure over Bitcoin mining operations.

Hyperscale Data also announced changes to its Bitcoin mining strategy, ceasing operations at the Michigan data center to prepare for AI infrastructure deployment. The company formed Patriot BTC as a separate entity to manage its mining assets, including the Montana data center. Despite these adjustments, GPUS remained near its 52-week low of $0.1599, with trading volume reaching about 14.09 million shares.