The Las-Vegas based company, which trades under the ticker GPUS on the NYSE American exchange, built its image on Bitcoin mining and holding cryptocurrency reserves. Now it's deciding to use part of those reserves differently.
On the day of the announcement, Bitcoin was trading around $64,800. At that price, 100 $BTC are worth approximately $6.5 million. In late July, the company reported holding about 1,106 bitcoins valued at around $71 million. After the sale, the holdings stand at about 1,006 $BTC. This places GPUS at 44th among public companies by $BTC on their balance sheets.
According to an announcement released on Thursday, a new credit line allows the company to take loans secured by its remaining bitcoins at a variable interest rate of 4.5% to 5.0%. Management did not disclose the lender or the size of the credit facility.
Why the Company is Taking This Step
Building data centers for artificial intelligence requires money. Companies typically raise funds by selling equity or borrowing. Selling shares dilutes existing shareholders' ownership. Traditional borrowing can be expensive.
Hyperscale Data chose a third way. It sold some of its bitcoins and borrowed against the rest, using its own financial reserves as a funding source instead of the stock market.
Executive Chairman Milton "Todd" Ault III stated that the company built its bitcoin position through mining and managing its own assets, calling it a source of financial flexibility. CEO William Horn clarified that this move does not signal a change in the company's long-term stance on Bitcoin. He characterized it as replacing one asset on the balance sheet with another.
The Michigan Contract Underlying the Decision
The funds will be used to construct a 617,000 square foot building in Dowagiac, Michigan, which Hyperscale Data has operated for years as a Bitcoin mining site through its subsidiary Alliance Cloud Services.
On June 24, 2026, Alliance Cloud Services signed a 10-year agreement with a California-based "neo-cloud" AI service provider to deliver 20 megawatts of computing power, scheduled to be operational in the fourth quarter of 2026. Including two five-year renewal options, the deal could generate over $1.2 billion.
Furthermore, the customer has an option for an additional 32 megawatts. If this option is exercised within two years and renewed for both option periods, the total contract revenue could exceed $3 billion. The company expanded the land area at this site to approximately 83 acres and indicated that the long-term power supply potential exceeds 300 megawatts, subject to permits, agreements with power companies, and securing financing.
Part of a Broader Trend Among Bitcoin Miners
Hyperscale Data is not the only company in this category. MARA Holdings sold over 15,000 $BTC for similar purposes. Bitdeer Technologies has used bitcoin to fund AI operations or infrastructure. Virtually all top ten public Bitcoin mining companies have incorporated artificial intelligence and high-performance computing (HPC) into their business models.
This trend is observed across the entire group. Mining sites already have grid connections, land, and cooling systems. Reorienting this infrastructure to host AI can generate more stable revenue than Bitcoin mining, which depends on price fluctuations, network difficulty adjustments, and electricity costs.
What Comes Next
The company did not disclose exactly when it sold the bitcoins or at what price. It also did not reveal the total size of the credit line or the loan-to-value ratio terms.
Investors will be watching to see if the unnamed client exercises the 32-megawatt option, how quickly the first 20 megawatts come online, and whether Hyperscale Data utilizes its new credit line. The company also announced plans to sell its direct investment divisions by the second quarter of 2027 to focus on data centers and digital assets.
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