Hyperscale Data Exits Bitcoin Holdings to Fund AI Facility

Hyperscale Data, listed on the NYSE American, unloaded its remaining bitcoin stash, the firm announced on Tuesday, offloading roughly 211.56 BTC for around $16 million. The proceeds are earmarked for debt repayment and financing an artificial intelligence data center in Michigan.

Those disposals were wrapped up by November 8 at an approximate price of $76,000 per bitcoin. Since it began selling portions of its holdings in late July, the company has disposed of around 1,113 bitcoin for about $74.4 million in total, according to Hyperscale.

That equates to an average price of roughly $66,800 per bitcoin. At current values near $74,200, that same amount of bitcoin would be worth approximately $82.6 million.

The firm, trading under the ticker GPUS, stated that the funds will go toward its Michigan facility, where it expects to bring the first 10 megawatts of critical IT capacity online in December.

“We believe bringing that capacity online is our quickest path to profitability,” CEO Will Horne said in the statement. “Selling our Bitcoin reserves reduces our exposure to Bitcoin price swings and gives us cash to pay down debt and fund the work in Michigan. We believe that’s the best use of this capital for all our stockholders.”

From a $100 million target to zero

This exit marks a sharp turnaround from Hyperscale’s ambitions earlier this year. In late July, the company disclosed holding over 1,106 bitcoin and expressed plans to build a $100 million digital asset treasury while matching its bitcoin holdings to its market capitalization.

“Every Bitcoin we acquire further strengthens Hyperscale Data’s balance sheet and expands our financial flexibility,” Executive Chairman Milton “Todd” Ault III said at the time. “We intend to continue building our Bitcoin position over time.”

A week later, Hyperscale reported its initial sale of about 150.5 BTC, leaving it with roughly 958.5 BTC as of August 2, even as its subsidiary Ault Capital Group purchased about 15 BTC on the open market. Those holdings were divided between that unit and Sentinum. At that point, Ault said the company aimed to maintain a long-term position while using it for short-term flexibility, adding, “We are confident in our ability to use Bitcoin as pristine collateral.”

Tuesday’s announcement brings that period to a close. Hyperscale noted that it continues to mine bitcoin at its Montana site and expects any bitcoin it keeps on its balance sheet going forward to come “primarily” from its own mining operations.

Hyperscale joins the bitcoin-for-AI trade

Hyperscale is the latest publicly traded company to abandon a bitcoin treasury in favor of spending on data centers. Keel disposed of its entire bitcoin treasury for $192 million in the third quarter, while Riot and Hut 8 offloaded thousands of bitcoin to fund AI buildouts and share buybacks.

Larger mining firms are heading in the same direction. MARA announced on Monday that it sold 13,597 BTC for about $1.1 billion after September 30 and plans further sales to finance AI infrastructure, convertible note puts and share repurchases.

Hyperscale’s corporate structure is more complex than that of a pure-play miner. Its Sentinum subsidiary runs the data center business, while Ault Capital Group, a hybrid private equity firm and operating company, holds a mix of lending, defense, industrial and hotel interests. Hyperscale expects to spin off Ault Capital Group in 2027 and evolve into a data center owner and operator.

The company said it plans to file its third-quarter 10-Q on or before November 23. Due to a newly proposed exchange offer for its Class A common stock, it is also shifting its virtual Investor Day from November 12 to November 23, when management intends to update investors on debt reduction and the December energization target.

Hyperscale did not disclose how much debt the bitcoin proceeds have reduced so far or the remaining amount outstanding.