Hyperscale Data Sells Bitcoin Holdings to Fund Michigan AI Campus
Hyperscale Data has decided to sell its Bitcoin treasury assets to fund its Michigan AI campus. The company established a Bitcoin-backed credit facility with variable interest rates ranging from 4.5% to 5%. Management said this strategy could reduce reliance on equity financing, limit stockholder dilution, and preserve a substantial portion of its Bitcoin holdings.
The campus supports a master services agreement with a neo-cloud AI infrastructure provider, which initially covers about 20 megawatts of AI computing capacity. The agreement has a 10-year term and two optional five-year extensions, with expected revenue exceeding $1.2 billion over the maximum term.
Hyperscale Data recently reported holding approximately $71 million in Bitcoin. Executive Chairman Milton 'Todd' Ault III said, 'Bitcoin monetization and Bitcoin-backed borrowing were more attractive than issuing additional equity at current valuations.'