Hyperscale Data Sells 100 Bitcoins to Fund AI Campus
Hyperscale Data plans to sell 100 Bitcoins it holds and secure a credit line using the remaining BTC as collateral to fund the construction of an AI data center campus in Michigan, USA. The proceeds from the sale will be used for the construction costs of the Michigan campus and the purchase of key equipment. The interest rate for the BTC-backed credit line is expected to be variable, ranging from 4.5% to 5.0% annually. Hyperscale Data has signed a 10-year contract with an AI infrastructure provider, with an initial capacity of approximately 20 megawatts (MW). There are two options for contract extension, and if both are exercised, revenue could exceed $1.2 billion. However, the $3 billion is not guaranteed revenue, as securing power and procuring equipment remain key variables for contract fulfillment. Hyperscale Data is raising funds for the AI data center construction by selling part of its BTC holdings while retaining some for collateral. The transition to AI data centers is ongoing in the U.S. mining industry, with increasing demand for large-scale computational facilities due to the proliferation of generative AI. Meanwhile, Strategy reported a loss of $8.2 billion in the second quarter due to Bitcoin's weakness.
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