Hyperscale Data sells 100 bitcoin to fund Michigan AI data center

Hyperscale Data Inc. monetized about 100 bitcoin from its corporate treasury, directing the proceeds toward construction of its Michigan AI data center campus, the company said Thursday.

The bitcoin-backed credit facility allows the company to borrow at variable rates expected to range from 4.5 percent to 5 percent, with remaining BTC holdings pledged as collateral. Executive Chairman Milton "Todd" Ault III said deploying bitcoin and borrowing against the treasury offered more attractive capital than relying primarily on equity issuance at the company's current valuation.

The company recently reported approximately $71 million in bitcoin before the sale, accumulated through its mining operations and treasury management. The Michigan campus is tied to a 10-year master services agreement with an unnamed neo-cloud AI infrastructure provider, initially covering about 20 megawatts of critical AI compute capacity. Hyperscale Data expects the contract to generate more than $1.2 billion in revenue if it reaches the maximum term of 20 years, including two five-year extension options.

The customer also holds an option for an additional 32 megawatts. If exercised within the first two years and extended across the full contract period, total expected revenue would rise above $3 billion. CEO William Horne described the approach as shifting one balance-sheet asset into another, with the Michigan campus expected to produce recurring cash flow as new AI capacity comes online.

The strategy marks a shift in how Hyperscale Data uses its crypto holdings without abandoning them. The company said it still intends to preserve meaningful exposure to bitcoin while converting a portion of its digital assets into long-lived AI infrastructure. Hyperscale Data shares traded at $0.12 on the NYSE American.

The move mirrors a broader trend among bitcoin miners repurposing their energy infrastructure and digital asset reserves to capture AI compute demand. Unlike peers that have raised equity or debt to fund AI pivots, Hyperscale Data is using its bitcoin treasury as a direct capital source, a structure that management said reduces stockholder dilution while maintaining upside to bitcoin through its remaining holdings.

This article is for informational purposes only and does not constitute investment advice.