Company Utilizes Bitcoin Treasury to Access Low-Cost Capital While Preserving Long-Term Bitcoin Exposure and Reducing Reliance on Potentially More Dilutive Equity Financing
LAS VEGAS, Aug. 3, 2026 /PRNewswire/ — Hyperscale Data, Inc. (NYSE American: GPUS), an artificial intelligence (“AI“) data center company anchored by Bitcoin (“Hyperscale Data” or the “Company“), today announced that it has successfully implemented its Bitcoin-backed decentralized finance (“DeFi“) financing strategy through the Morpho Protocol, establishing the ability to borrow against its Bitcoin treasury at competitive and variable institutional financing rates, a strategy that the Company outlined in a press release issued on July 30, 2026.
As part of this initiative, as of August 2, 2026, the Company had approximately $30 million outstanding under Bitcoin-backed borrowings obtained through the Morpho Protocol. The borrowings are secured by a portion of the Company’s Bitcoin holdings and bear a current variable interest rate of approximately 4.9%. The proceeds are being utilized to support the continued development of the Company’s Michigan AI data center campus pursuant to its previously announced master services agreement with a leading AI-based neocloud provider, as well as for working capital and other general corporate purposes, while allowing the Company to retain long-term ownership of the Bitcoin serving as collateral.
The financing represents an important evolution in Hyperscale Data’s capital allocation strategy by transforming the Company’s Bitcoin treasury from a passive reserve asset into a productive source of low-cost growth capital. Rather than relying solely on traditional financing alternatives or liquidating digital assets to fund expansion, the Company believes Bitcoin-backed financing provides an efficient source of liquidity while preserving meaningful long-term exposure to potential appreciation in its Bitcoin holdings.
The Company believes this strategy enhances financial flexibility, strengthens its capital structure, and has the potential to reduce reliance on more dilutive forms of equity financing and potentially onerous and restrictive forms of debt financing while supporting the continued build-out of its Michigan AI data center campus and other long-term strategic initiatives.
“This is a significant milestone in the evolution of Hyperscale Data’s capital strategy,” said Milton “Todd” Ault III, Executive Chairman of Hyperscale Data. “We believe Bitcoin is no longer simply a treasury asset—it is a strategic financial asset capable of generating liquidity without sacrificing ownership. By utilizing decentralized finance through the Morpho Protocol, we have demonstrated that our Bitcoin treasury can become a low-cost source of institutional capital while allowing us to continue participating in Bitcoin’s long-term appreciation. We expect to continue maintaining a disciplined balance between unencumbered Bitcoin and Bitcoin-backed borrowings, giving us the flexibility to fund growth opportunities, including the expansion of our Michigan AI data center, while thoughtfully managing our overall capital structure.
“We believe decentralized finance represents the next generation of corporate finance. As institutional adoption of Bitcoin accelerates, we expect Bitcoin-backed lending to become an increasingly important financing tool for companies with digital asset treasuries. We intend to continue expanding our use of these innovative financing solutions as we build long-term stockholder value.”
The Morpho Protocol is a decentralized finance lending protocol that enables institutional-quality, overcollateralized Bitcoin-backed borrowing through blockchain-based smart contracts, which are self-executing digital programs stored on a blockchain that automatically take actions when predetermined criteria are met.
The Company expects to continue evaluating additional Bitcoin-backed financing opportunities and other innovative treasury management strategies designed to enhance financial flexibility, support long-term growth and maximize stockholder value.
For more information on Hyperscale Data and its subsidiaries, Hyperscale Data recommends that stockholders, investors and any other interested parties read Hyperscale Data’s public filings and press releases available under the Investor Relations section at hyperscaledata.com or available at www.sec.gov.
About Hyperscale Data, Inc.
Through its wholly owned subsidiary Sentinum, Inc., Hyperscale Data owns and operates a data center at which it mines digital assets and offers colocation and hosting services for the emerging AI ecosystems and other industries. Hyperscale Data’s other wholly owned subsidiary, Ault Capital Group, Inc. (“ACG“), is a hybrid private equity firm and operating company that acquires, finances, builds and actively manages businesses across financial services, digital assets, industrial services, hospitality, defense technologies and other sectors.
Hyperscale Data currently expects the divestiture of ACG (the “Divestiture“) to occur in the second quarter of 2027. Upon the occurrence of the Divestiture, the Company would be an owner and operator of data centers to support high-performance computing services, as well as a holder of the digital assets. Until the Divestiture occurs, the Company will continue to provide, through ACG and its wholly and majority-owned subsidiaries and strategic investments, mission-critical products that support a diverse range of industries, including an AI software platform, equipment rental services, defense/aerospace, industrial, automotive and hotel operations. In addition, ACG is actively engaged in private credit and structured finance through Ault Lending, LLC, a licensed lending subsidiary. Hyperscale Data’s headquarters are located at 11411 Southern Highlands Parkway, Suite 190, Las Vegas, NV 89141.
On December 23, 2024, the Company issued one million (1,000,000) shares of a newly designated Series F Exchangeable Preferred Stock (the “Series F Preferred Stock“) to all common stockholders and holders of the Series C Preferred Stock on an as-converted basis. The Divestiture will occur through the voluntary exchange of the Series F Preferred Stock for shares of Class A Common Stock and Class B Common Stock of ACG (collectively, the “ACG Shares“). The Company reminds its stockholders that only those holders of the Series F Preferred Stock who agree to surrender such shares, and do not properly withdraw such surrender, in the exchange offer through which the Divestiture will occur, will be entitled to receive the ACG Shares and consequently be stockholders of ACG upon the occurrence of the Divestiture.
Forward-Looking Statements
This press release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements generally include statements that are predictive in nature and depend upon or refer to future events or conditions, and include words such as “believes,” “plans,” “anticipates,” “projects,” “estimates,” “expects,” “intends,” “strategy,” “future,” “opportunity,” “may,” “will,” “should,” “could,” “potential,” or similar expressions. Statements that are not historical facts are forward-looking statements. Forward-looking statements are based on current beliefs and assumptions that are subject to risks and uncertainties.
Forward-looking statements speak only as of the date they are made, and the Company undertakes no obligation to update any of them publicly in light of new information or future events. Actual results could differ materially from those contained in any forward-looking statement as a result of various factors. More information, including potential risk factors, that could affect the Company’s business and financial results are included in the Company’s filings with the U.S. Securities and Exchange Commission, including, but not limited to, the Company’s Forms 10-K, 10-Q and 8-K. All filings are available at www.sec.gov and on the Company’s website at hyperscaledata.com.
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Source: Hyperscale Data Inc.
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