Hyperscale Data just moved roughly 100 BTC for $6.5 million and secured a Bitcoin-backed loan to fund its AI data center campus in Michigan. This move avoids diluting shareholders while advancing a project expected to generate over $1.2 billion, with potential revenues exceeding $3 billion if contract extensions kick in.
The company signed a Master Services Agreement in late June with a California-based neo-cloud firm, committing to 20 MW of AI compute power over a decade. Initial outlays for the build-out sit between $100 million and $120 million. The credit facility tied to Bitcoin collateral offers interest rates ranging from 4.5% to 5%.
Shifting from Mining to AI Infrastructure
Once focused on Bitcoin mining with about 28 MW capacity, Hyperscale is repurposing that infrastructure for AI demand. As of late July, it holds over 1,100 BTC worth close to $72 million, well above the 1,000 BTC mark hit earlier this month. The latest BTC sale represents a small liquidity adjustment rather than a retreat from cryptocurrency.
However, the value of Bitcoin will impact the credit facility’s safety margin. A sudden drop in BTC prices might push the company to provide extra collateral or liquidate holdings under unfavorable conditions. The identity of the neo-cloud partner remains undisclosed, making it harder for outside observers to gauge the deal’s full risks.
