Hyperscale Data (NYSE: GPUS) has sold around 100 Bitcoin from its corporate treasury to fund the construction phase of an artificial intelligence (AI) campus located in Michigan. Alongside this crypto asset liquidation, the company secured a credit facility backed directly by Bitcoin. The loan facility carries a variable interest rate ranging from 4.5% to 5.0%.
The Michigan AI campus is being built to support a previously announced master services agreement (MSA) with a computing infrastructure provider. The client’s identity remains confidential. Under its initial terms, the deal covers the provision of 20 megawatts of AI computing capacity.
The infrastructure contract binds both parties for a full 10-year term. The agreement also includes two renewal options of five years each. If the initial contract runs its full course as agreed, projected revenue is expected to exceed $1.2 billion.
Potential Expansion of Contract Value
That revenue figure does not yet account for the maximum expandable capacity of the facility. The AI infrastructure provider holds an option to request an additional 32 megawatts of capacity, provided this expansion is decided and executed within the first two years of the contract term.
If the client exercises this expansion option and the partnership extends through all renewal periods, the total contract value could surpass $3 billion. This massive revenue potential prompted management to convert a portion of their Bitcoin reserves into physical working capital.
This aggressive move stems from a series of strategic business shifts. The entity previously operated under the name Ault Alliance before rebranding to Hyperscale Data in 2024. The name change marked a pivot toward AI infrastructure provisioning, though the company continues to maintain its Bitcoin mining operations as a secondary pillar.
Crypto Treasury Position Remains Strong
Selling 100 Bitcoin for construction capital has not drastically depleted their digital vault. According to data from tracking platform BitcoinTreasuries.NET, management still holds approximately 1,006 BTC on its balance sheet. This remaining balance ranks the company 44th on the list of the world’s largest public Bitcoin-holding entities.
Stock market investors responded favorably to this new direction. GPUS shares reacted positively, rising more than 5% during Thursday morning trading after the expansion plans were made public.
For crypto mining operators, diversifying into high-performance computing facilities has become a logical path to maximize energy margins. The decision to leverage part of its coin holdings to build data centers demonstrates how Bitcoin reserves can power physical industrial expansion without sacrificing a company’s crypto market footprint.
Source: Cointelegraph.
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Disclaimer: This article is for informational and educational purposes only, not financial advice. Cryptocurrency assets are highly volatile and carry significant risk. Always do your own research (DYOR) and never invest more than you can afford to lose.
