Ultrascale Data Corporation builds a bitcoin-backed DeFi financing plan through the Morpho protocol;

HyperScale Data builds a Bitcoin-backed DeFi financing plan through the Morpho protocol; Currently borrowing approximately US$30 million with an interest rate of 4.9%, is used to support the expansion of the Michigan AI Data Center

Company uses Bitcoin vaults to obtain low-cost capital while retaining long-term Bitcoin exposure and reducing reliance on more dilutive equity financing

Las Vegas, August 3, 2026-HyperScale Data, Inc. (NYSE U.S. code: GPU), an artificial intelligence data center company with bitcoin-core (hereinafter referred to as "HyperScale Data" or "the Company"), today announced that it has successfully implemented its bitcoin-backed DeFi financing strategy through the Morpho protocol, establishing the ability to borrow against its Bitcoin vaults and at competitive variable institutional financing rates. The strategy was outlined in a press release issued by the company on July 30, 2026.

As part of this plan, as of August 2, 2026, the balance of bitcoin-backed borrowings obtained by the Company through the Morpho Agreement was approximately US$30 million. These loans are secured by part of the company's Bitcoin positions and currently have a variable interest rate of approximately 4.9%. The proceeds will be used to support the continued development of the company's Michigan AI data center campus (based on a previous master services agreement with a leading AI new cloud provider), as well as working capital and other general corporate purposes, while allowing the company to retain long-term ownership of Bitcoin as collateral.

This financing represents an important evolution in HyperScale Data's capital allocation strategy, transforming the company's Bitcoin vault from a passive reserve asset to a productive source of low-cost growth capital. The company believes that bitcoin-backed financing not only provides an efficient source of liquidity, but also retains potential appreciation of its bitcoin holdings, rather than relying solely on traditional financing options or monetizing digital assets to support expansion.

The company believes this strategy enhances financial flexibility, consolidates the capital structure, and has the potential to reduce reliance on more dilutive equity financing and potentially onerous and restricted debt financing, while supporting the continued construction of the Michigan AI data center park and other long-term strategic initiatives.

"This is an important milestone in the evolution of HyperScale Data's capital strategy," said Milton "Todd" Ault III, executive chairman of HyperScale Data."We believe that Bitcoin is no longer just a treasury asset-it is a strategic financial asset that can generate liquidity without ceding ownership. By leveraging decentralized finance with the Morpho protocol, we demonstrate that Bitcoin vaults can be a source of low-cost institutional capital, while allowing us to continue to participate in Bitcoin's long-term appreciation. We expect to continue to maintain a prudent balance between no-burden bitcoin and bitcoin-backed borrowing to flexibly fund growth opportunities, including the expansion of the Michigan AI data center, while prudently managing the overall capital structure."

"We believe that decentralized finance represents the next generation of corporate finance. As institutional adoption of Bitcoin accelerates, we expect bitcoin-backed loans to become an increasingly important financing tool for companies with digital asset vaults. We plan to continue to expand the use of these innovative financing solutions as we build long-term shareholder value."

The Morpho protocol is a decentralized financial lending protocol that enables institutional-level, over-collateralized bitcoin-backed borrowing through blockchain-based smart contracts (i.e., digital programs stored on the blockchain and automatically perform operations when predetermined conditions are met).

The company expects to continue to evaluate additional bitcoin-backed financing opportunities and other innovative treasury management strategies aimed at enhancing financial flexibility, supporting long-term growth and maximizing shareholder value.

About HyperScale Data, Inc. [TAG 1]

Through its wholly owned subsidiary, Sentinum, Inc., HyperScale Data owns and operates a data center where it mines digital assets and provides hosting and hosting services to emerging AI ecosystems and other industries. Ault Capital Group, Inc., another wholly owned subsidiary of HyperScale Data. ("ACG") is a hybrid private equity firm and operating company that acquires, finances, builds and actively manages businesses in financial services, digital assets, industrial services, hotels, defense technology and other areas.

HyperScale Data currently expects ACG's divestiture ("divestiture") to take place in the second quarter of 2027. After the divestiture is completed, the company will become the owner and operator of data centers that support high-performance computing services, while also holding digital assets. Pending the completion of the divestment, the company will continue to provide mission-critical products that support a variety of industries, including AI software platforms, equipment rental services, defense/aerospace, industrial, automotive and hotel operations through ACG, its wholly-owned and controlled subsidiaries and strategic investments. In addition, ACG is actively involved in private credit and structured financing through its licensed lending subsidiary Ault Lending, LLC. HyperScale Data's headquarters are located at 11411 Highland Parkway in South Las Vegas, Nevada, Suite 190, 89141.

On December 23, 2024, the Company issued 1 million newly designated Series F exchangeable preferred shares ("Series F Preferred Shares") to all ordinary shareholders and Series C preferred shareholders (on a post-conversion basis). The divestiture will be carried out through a voluntary exchange of Series F preferred shares into ACG's Class A common shares and Class B common shares (collectively referred to as "ACG Shares"). The company reminds shareholders that only holders of Series F preferred shares who have agreed to surrender those shares in the offer exchange and have not appropriately withdrawn them are entitled to ACG shares and become shareholders of ACG after the divestment is completed.

Forward-looking statements

This press release contains "forward-looking statements" as defined in accordance with 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 of a predictive nature, rely on or involve future events or conditions, and include expressions such as "believe","plan","expect","predict","estimate","expect","plan","strategy","future","opportunity","may","will","should","can","potential" or similar expressions. Statements that are not historical facts are forward-looking statements. Forward-looking statements are based on current beliefs and assumptions and involve risks and uncertainties.

Forward-looking statements are only valid as of the date of this statement, and the Company has no obligation to publicly update any forward-looking statements due to new information or future events. Due to various factors, actual results may differ materially from those contained in any forward-looking statements. Additional information, including potential risk factors that may affect the company's business and financial results, has been disclosed 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.