Hyperscale Data, Inc. has secured approximately USD 30 million in financing by borrowing against its Bitcoin holdings through the Morpho Protocol, a decentralized finance lending platform, deploying the capital toward the expansion of its Michigan artificial intelligence data center campus.

A New Role for the Bitcoin Treasury

The Las Vegas-based company, which trades on NYSE American under the ticker GPUS, announced the development on August 3, 2026, confirming that the borrowings were in place as of August 2, 2026.

The funds carry a current variable interest rate of approximately 4.9% and are secured by a portion of the company's existing Bitcoin holdings.

Hyperscale Data had outlined the broad contours of this financing strategy in a press release issued on July 30, 2026, describing to use bitcoin treasury to fund Michigan AI Data Center.

The announcement this week confirmed that the strategy had moved from planning to execution. The company framed the move as a deliberate shift in how it thinks about its digital asset holdings.

Rather than treating Bitcoin purely as a store of value sitting on its balance sheet, Hyperscale Data is now using those holdings as collateral to access liquidity without selling the underlying asset.

The company stated that this approach allows it to retain long-term ownership of the Bitcoin serving as collateral while still extracting working capital from it.

How the Morpho Protocol Works

The Morpho Protocol is described by the company as a decentralized finance lending protocol that enables institutional-quality, overcollateralized Bitcoin-backed borrowing through blockchain-based smart contracts.

The company defined smart contracts as self-executing digital programs stored on a blockchain that automatically take actions when predetermined criteria are met. The use of a decentralized protocol rather than a traditional lender reflects a broader strategic philosophy articulated by Hyperscale Data's executive leadership.

The company indicated it views decentralized finance as representing what it called the next generation of corporate finance, and it expects Bitcoin-backed lending to become an increasingly important financing tool for companies that hold digital asset treasuries as institutional adoption of Bitcoin continues to accelerate.

Michigan Data Center Expansion at the Center of the Strategy

The primary stated use of the borrowed funds is to support the continued development of the company's Michigan AI data center campus.

Hyperscale Data previously announced a master services agreement with what it described as a leading AI-based neocloud provider in connection with that project.

The Michigan campus is a central element of the company's growth strategy, and the Bitcoin-backed borrowing is being positioned as a way to advance that build-out while managing the company's overall capital structure.

In addition to the data center development, the company said proceeds are also being used for working capital and other general corporate purposes.

Reducing Dilution and Avoiding Restrictive Debt

A key argument the company made for this financing approach is that it offers an alternative to methods that could be more costly or disadvantageous to existing shareholders.

Hyperscale Data stated explicitly that the strategy has the potential to reduce reliance on more dilutive forms of equity financing and potentially onerous and restrictive forms of debt financing.

By borrowing against Bitcoin rather than issuing new shares or taking on traditional secured debt with restrictive covenants, the company said it believes it can enhance financial flexibility and strengthen its capital structure.

The company described the transformation of its Bitcoin treasury from a passive reserve into a productive source of low-cost growth capital as an important evolution in its capital allocation strategy.

Milton "Todd" Ault III, Executive Chairman of Hyperscale Data, characterized the development as a significant milestone.

"We believe Bitcoin is no longer simply a treasury asset, it is a strategic financial asset capable of generating liquidity without sacrificing ownership," Ault said.

He added that the company expects to maintain what he described as a disciplined balance between unencumbered Bitcoin and Bitcoin-backed borrowings, giving it flexibility to fund growth while managing its overall capital structure.

Ault also signaled that the company's use of decentralized finance is not expected to stop with this initial program.

"We intend to continue expanding our use of these innovative financing solutions as we build long-term stockholder value," he said.

Company Structure and Planned Divestiture

Hyperscale Data operates its data center and digital asset mining activities through a wholly owned subsidiary called Sentinum, Inc.

A second wholly owned subsidiary, Ault Capital Group, Inc., functions as a hybrid private equity firm and operating company with interests spanning financial services, digital assets, industrial services, hospitality, defense technologies, and other sectors.

The company has disclosed that it currently expects to divest Ault Capital Group in the second quarter of 2027. Following that divestiture, Hyperscale Data has said it would operate as an owner and operator of data centers supporting high-performance computing services and as a holder of digital assets.

Until that transaction is completed, the company will continue operating its broader portfolio of businesses through Ault Capital Group, which includes an AI software platform, equipment rental services, defense and aerospace operations, industrial and automotive businesses, hotel operations, and private credit and structured finance activities.

The company said it expects to continue evaluating additional Bitcoin-backed financing opportunities and other innovative treasury management strategies as part of its ongoing effort to enhance financial flexibility and support long-term growth.