Hyperscale Data Monetizes Bitcoin to Fund Michigan AI Campus

Hyperscale Data Inc. is monetizing approximately 100 bitcoin and securing a bitcoin-backed credit facility with variable interest rates between 4.5% and 5% to finance an AI data center campus in Michigan. The company is using the capital for critical infrastructure and long-lead equipment to support a 10-year master services agreement with an unnamed neo-cloud AI infrastructure provider.

The agreement initially covers 20 megawatts of compute capacity and is expected to generate over $1.2 billion. If the client exercises an option for an additional 32 megawatts and utilizes two five-year extensions, the total revenue could exceed $3 billion.

Executive Chairman Milton Todd Ault III stated that leveraging the bitcoin treasury is a more attractive capital source than issuing additional equity at the company's current valuation. CEO Willie Horne characterized the strategy as shifting one balance-sheet asset into another.