Hyperscale Data sold roughly 685 Bitcoin (BTC) for about $43 million, cutting its treasury to 275 coins to fund a Michigan data center buildout.
Key Points:
- Hyperscale Data sold about 685 Bitcoin for roughly $43 million and used part of the cash to cut debt by around $30 million.
- The company keeps approximately 275 Bitcoin and says mining will continue.
- Shares dropped more than 17% on Friday, a day after a reverse stock split notice.
Hyperscale Data Sale Funds Michigan Data Center
The Las Vegas company announced the completed sale on Friday, based on recent prices. It trades on the NYSE American under the ticker GPUS and calls itself an AI data center operator anchored by Bitcoin. Roughly $30 million of the proceeds paid down corporate debt, and the remainder is earmarked for development and expansion at the Michigan campus.
Hyperscale runs that facility through Sentinum, a wholly owned subsidiary that mines digital assets and sells colocation and hosting services to AI companies and other industries. A 20-megawatt hosting agreement disclosed in July could produce more than $1.2 billion in revenue if the customer exercises every extension option, and a further 32 megawatts could lift the total past $3 billion.
"This is about capital allocation," Executive Chairman Milton Ault III said. He described the treasury as a highly liquid asset the company can convert into capital for one of its most important portfolio projects. Hyperscale expects to keep mining and to rebuild the position over time, with the pace depending on production, Bitcoin prices, liquidity needs and market conditions.
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Bitcoin Miners Convert Reserves Into AI Power
The move fits a wider pattern among listed miners, who are converting coin reserves into electrical capacity and hardware for artificial intelligence tenants. Singapore-based Bitdeer cleared its treasury in February and ended June holding just 150 coins, even as its quarterly production climbed to 2,694 from 565 a year earlier.
Florida-based MARA sold about $1.5 billion worth in May. The cash went toward AI infrastructure and debt repurchases. Matthew Sigel, head of digital asset research at VanEck, argued in March that miners were undervalued because they could repurpose existing sites while trading far below data center peers on a market capitalization to megawatt basis.
Shares fell more than 17% on Friday, dropping as low as $0.0930. The slide came a day after Hyperscale set a 1-for-5 reverse stock split effective Aug. 24, a step the company said would lift its per-share trading price.
Hyperscale Bitcoin Treasury Shrank Since July
The drawdown has moved fast. Hyperscale held about 1,006 Bitcoin after it sold roughly 100 coins in July and opened a Bitcoin-backed credit line to finance construction and equipment purchases at the Michigan site. That facility carried a variable rate near 4.5% to 5%, and the company did not name the lender or several other financing terms.
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