Hyperscale Data disclosed that the company had sold most of the bitcoin holding warehouse to support the expansion of the Michigan data centre. The company is listed on the United States Board of the New York Stock Exchange with the stock code GPUS. The proceeds of this sale will be invested mainly in data centre development and used to upgrade capital restructuring space.
685 bitcoins sold
According to the company, a total of approximately 685 bitcoins were sold this time, with a turnover of approximately $43 million. After completion of the sale, the bitcoin held by Hyperscale was reduced from approximately 960 to approximately 275.
Management stated that the core of the sale was the allocation of capital, not the abandonment of the Bitcoin strategy. According to Executive Chairman Milton Ault, the company converted some of its highly liquid assets into funds in order to expedite the construction of its core assets.
Funds invested in the Michigan project
The company disclosed that the funds would be used mainly for the continued development and expansion of the Michigan facility. At the same time, the transaction helps companies to restructure their debt, equity and overall capital structure. According to the company, the size of its debt has been reduced by approximately $30 million.
The Michigan project is an important part of Hyperscale's transition to AI infrastructure. The company operates the data centre through its wholly-owned subsidiary, Setinum, which includes mining of digital assets and hosting services for AI enterprises and other clients.
Still digging.
Hyperscale states that this sale does not mean the end of the Bitcoin layout. According to the company, subsequent mining will continue in Bitcoin and may be gradually rebuilt with mineral extraction and available funds, depending on market conditions.
In the recent past, a growing number of bitcoin mining companies have begun to shift power resources and data centre facilities to AI calculations. Previously, Bitdeer had sold all of its Bitcoin reserves in February this year to support the expansion of the AI data centre; MARA also sold about $1.5 billion bitcoin in May for AI infrastructure and debt buy-backs.
Additional information:Matthew Sigel, Head of the VanEck Digital Asset Research, indicated in March of this year that existing mining sites could be converted to AI calculations, while firm valuations remained at a significant discount compared to traditional data centre enterprises.