Hyperscale Data sells 685 BTC units and transfers $43 million to Michigan data center

Hyperscale Data sold approximately 685 bitcoins, raising approximately US$43 million.

Hyperscale Data sold approximately 685 bitcoins and raised approximately US$43 million in funding, reducing its holdings to approximately 275 bitcoins while investing more capital in its Michigan data center.

Summary of Highlights

Hyperscale Data sold approximately 685 bitcoins and raised approximately US$43 million.

The funds will be mainly used for the continued development of the Michigan data center.

The company still holds approximately 275 bitcoins and plans to continue mining.

Hyperscale Data Companies expect to gradually rebuild Bitcoin positions in the future using mining output and available capital.

Ultrascale Data said on Friday that most of the proceeds will be used for the continued development and expansion of Michigan facilities, and some of the cash will provide more room for it to manage its debt, equity and overall capital structure.

The deal leaves the company, which is listed on the U.S. section of the New York Stock Exchange, still holding approximately 275 bitcoins on its balance sheet. Management described the sale as a capital allocation at the current stage of development and said Bitcoin remains part of its long-term strategy.

Executive Chairman Milton "Todd" Alter III said the company plans to continue mining and expects to gradually rebuild its positions in the future using mining output and available capital.

"Bitcoin has always been an important part of the strategy of very large data companies, and we expect it to remain an important part of future strategies," Alter said."We intend to continue mining and use mining output and available capital over time to rebuild and increase our Bitcoin positions."

However, at the current stage of the Michigan project, Alter said management believes some of the Bitcoin reserves could be better used to fund data center construction and recapitalize the company.

According to the company, the sale brought in approximately US$43 million, while retaining exposure through the remaining 275 bitcoins. Hyperscale data companies say increased liquidity can support data centers in addition to debt repayments, working capital and other company needs.

Previously used Bitcoin reserves

Last Friday's transaction came after another Bitcoin sale in the previous weeks, when hyperscale data companies stepped up their investment in Michigan's artificial intelligence infrastructure. The company reportedly sold about 100 bitcoins in July and established a bitcoin-backed credit line to fund construction and equipment purchases at the Michigan campus. The floating interest rate on the credit line is expected to be approximately 4.5% to 5%, but the lender and multiple other financing terms are not disclosed.

After the earlier transaction, Hyperscale Data retained approximately 1006 bitcoins. According to information disclosed last Friday, the latest sale of approximately 685 bitcoins, coupled with subsequent changes in positions, has reduced the current balance to approximately 275 bitcoins.

Funds raised in the July deal were used for an artificial intelligence data center project supported by a master service agreement with an unnamed infrastructure customer. The initial arrangement covers approximately 20 megawatts of computing capacity for a 10-year period, with two optional five-year extensions. Hyperscale Data estimates that if customers exercise all available extension options, the initial capacity could generate more than $1.2 billion in revenue. Customers also have the right to apply for an additional 32 MW of capacity in the first two years, and if the new capacity and extensions are fully exercised, the total contract value could exceed US$3 billion. These numbers still depend on whether customers accept additional capacity and exercise contractual options.

Bitcoin sale will not end VSD's accumulation plan

Despite reducing reserves, VSD said it has not given up its plan to accumulate Bitcoin. Mining will continue, allowing companies to increase bitcoin through production rather than relying entirely on market purchases. Management also reserves the possibility to allocate additional capital to Bitcoin when financial and market conditions permit. According to the announcement, the accumulation rate will depend on mining output, bitcoin price, liquidity needs, capital expenditures and market conditions. Other strategic considerations may also affect the amount of capital allocated to the asset.

Alter described the latest deal as a decision about the maximum value available to the business can currently create for the capital. "It's about capital allocation," he said."We've built a sizable Bitcoin position, and now we're able to convert part of this highly liquid asset into capital, accelerating the development of one of the most important assets in our portfolio."

Ultrascale Data said it will continue to evaluate how capital is allocated among Bitcoin, data center infrastructure, debt repayments, working capital and other investments.

The company's latest sale also follows a wave of massive Bitcoin selling in the listed mining sector in 2026. According to industry reports, in the first quarter of 2026, publicly traded bitcoin miners sold more than 32000 bitcoins, a total exceeding the group's sales for the whole year of 2025 and also exceeding the approximately 20000 bitcoins sold in the second quarter of 2022.

Riot Platforms sold 3,778 bitcoins in the first quarter at an average net price of approximately US$76,626, and still earned approximately US$289.5 million despite mining 1,473 bitcoins during the same period. Core Scientific sold approximately 1,900 bitcoins in January for approximately $175 million, while Cango sold 2,000 bitcoins in March for approximately $143 million to repay bitcoin-backed loans. Cango subsequently disclosed a larger transaction involving 4,451 bitcoins worth approximately $305 million, with the proceeds used to reduce loan exposure and support its expansion into artificial intelligence computing infrastructure while keeping mining active.

Bitdeer has also reduced its reserves while continuing to expand its mining and artificial intelligence infrastructure. Its second-quarter results showed the miner held only 150 bitcoins at the end of June, after liquidating 943 bitcoins held in February, although quarterly bitcoin production climbed to 2,694 from 565 in the same period last year. The miner's second-quarter revenue was $228.8 million, up from $155.6 million in the same period last year, but its net loss widened to $92.3 million from $62.9 million.

Artificial intelligence data centers are absorbing more miners 'capital

Access to large power connections has become a key factor for mining companies to enter the fields of artificial intelligence and high-performance computing. Bernstein analysts estimated in May that Bitcoin miners control more than 27 gigawatts of planned power capacity globally, while announced artificial intelligence infrastructure partnerships involving ultra-large cloud companies, artificial intelligence providers and chip makers account for approximately 3.7 gigawatts of the total. Analysts estimate that the announced partnerships are worth more than $90 billion.

The study points out that miners such as IREN, Riot Platforms, CleanSpark and Core Scientific are expected to benefit from artificial intelligence infrastructure needs. Existing mines are attractive for such projects because many already have land, substations and large power connections. The study said that in parts of the United States, it could take up to 50 months to obtain and enable a new 1-gigawatt grid connection, giving operators with existing power infrastructure a first-mover advantage when building large computing facilities.

Since then, many miners have invested more capital and power capacity in artificial intelligence projects. For example, Bitdeer signed a 16-year, US$4.7 billion artificial intelligence data center agreement covering 121 megawatts of capacity in Norway, while continuing to expand its bitcoin mining business.