Hyperscale Data, Inc. recently sold about 100 BTC, raising roughly $6.5 million to fund its massive AI data center project in Dowagiac, Michigan. The company, listed as GPUS on NYSE American, also secured a bitcoin-backed credit facility to back the remaining coins on its balance sheet. This move is designed to speed up the building of a $3 billion AI campus.
On the day of the sale, bitcoin hovered around $64,800, valuing the 100 BTC at $6.5 million. Before the transaction, Hyperscale Data held approximately 1,106 BTC, worth about $71 million, making it the 44th largest public company by bitcoin holdings. After selling the coins, GPUS still retains around 1,006 BTC, using the rest as collateral for the new credit line, which carries interest rates between 4.5% and 5%. Details about the lender and credit facility size remain undisclosed.
Funding AI Infrastructure Without Diluting Shares
Instead of issuing new shares or taking traditional loans, Hyperscale Data leveraged its bitcoin stash to finance the data center. Executive Chairman Milton "Todd" Ault III emphasized that bitcoin mining and treasury management have provided financial flexibility. CEO William Horne underlined that this strategy doesn’t change their bullish stance on bitcoin but is simply an asset swap on the balance sheet.
The funds will support construction at an existing bitcoin mining site operated through the subsidiary Alliance Cloud Services. The 617,000-square-foot facility in Dowagiac has been a key part of the company’s operations for years, and now it is poised to transform into a major AI hub. Alliance Cloud Services recently signed a contract for 20 MW of power with a neo-cloud client, part of a deal expected to generate over $3 billion in revenue.
Hyperscale Data’s approach showcases how crypto assets can be creatively deployed beyond trading and mining. By using bitcoin as collateral, the company sidesteps some costs and stock dilution risks typically associated with capital raising.
This content is for informational purposes and does not constitute financial advice.
