Hyperscale Data Launches $100 Million Bitcoin Treasury and Expands AI Data Center
Hyperscale Data, Inc. (NYSE American: GPUS) has announced a new plan that combines two popular trends: artificial intelligence (AI) and Bitcoin. The company will start a $100 million bitcoin treasury strategy while growing its AI data center in Michigan. This move makes Hyperscale Data a pure-play AI and digital asset company.
Stock Surges After Announcement
After the news, Hyperscale Data’s stock price more than doubled in early trading on Monday. It rose as much as 101% before dropping back down later. This shows strong investor interest in the company’s new direction.
Funding the New Strategy
Hyperscale Data will fund this plan by selling its Montana data center assets. The company will also use its at-the-market equity program to raise money. By selling the Montana center, Hyperscale can focus on its Michigan campus and bitcoin strategy.
Michigan Data Center Expansion
The Michigan data center is key to Hyperscale’s growth. It currently has 30 megawatts (MW) of power capacity. The company plans to increase this to 70 MW within 20 months. New natural gas infrastructure will help the center generate power on-site, making it more efficient.
CEO Comments on the Company’s Future
William B. Horne, CEO of Hyperscale Data, said, “This marks a pivotal moment in Hyperscale Data’s evolution. With the Michigan campus positioned to become an extremely valuable asset over time, and with Bitcoin now serving as a core treasury reserve, we are building a company anchored in two of the most dynamic forces of our era: artificial intelligence and digital assets.”
Bitcoin Mining and Holdings
Hyperscale Data has been mining bitcoin for years through its subsidiary, Sentinum, Inc. The company holds about 11 bitcoins, worth around $1.2 million. All these bitcoins were mined, not bought on the open market. This gives Hyperscale experience in managing digital assets.
The company plans to publish weekly updates about its digital asset holdings to keep investors informed.
Large Corporate Bitcoin Treasury
Hyperscale is following a strategy that makes bitcoin its main reserve asset. The $100 million bitcoin treasury will be one of the largest among companies worldwide. Before this plan, Hyperscale’s digital assets already made up nearly 12% of its market value.
Challenges in Corporate Bitcoin Adoption
More companies in the U.S., Europe, and Asia are adding bitcoin to their treasuries. But rising interest rates and price swings make this strategy harder to succeed. Unlike traditional assets, bitcoin does not generate income. Companies must rely on bitcoin’s price going up or strong operations to benefit.
Hyperscale’s Strategy to Create Value
Hyperscale Data has faced challenges, with its stock price falling from $5.82 to $0.45 in the past year. The company believes focusing on the Michigan AI data center and building a bitcoin treasury will help it grow.
CEO William Horne said, “By focusing our resources to accelerate Bitcoin accumulation while also expanding Michigan, we are pursuing a dual strategy designed to create long-term value for our shareholders.”
