Hyperscale Data Taps Bitcoin Treasury for Low-Cost Growth Capital

Hyperscale Data has successfully implemented its Bitcoin-backed DeFi financing program through Morpho Protocol. The company borrowed approximately $30 million at a variable interest rate of around 4.9% to support the expansion of its Michigan AI data center campus.

The funds are being used for working capital and other general corporate purposes, while allowing Hyperscale Data to retain long-term ownership of the Bitcoin serving as collateral.

This financing strategy transforms the company's Bitcoin treasury from a passive reserve asset into a productive source of low-cost growth capital. By utilizing decentralized finance through Morpho Protocol, Hyperscale Data has demonstrated that its Bitcoin treasury can become a low-cost source of institutional capital while preserving meaningful long-term exposure to potential appreciation in its Bitcoin holdings.

Hyperscale Data's Executive Chairman, Milton 'Todd' Ault III, believes this strategy is a significant milestone in the evolution of the company's capital strategy. He expects the company to continue maintaining a disciplined balance between unencumbered Bitcoin and Bitcoin-backed borrowings, giving it flexibility to fund growth opportunities while thoughtfully managing its overall capital structure.