Hyperscale Data, Inc. has secured approximately $30 million in outstanding Bitcoin-backed borrowings at a 4.9% variable interest rate through the Morpho Protocol. The decentralized finance loan allows the company to retain ownership of its collateralized digital assets. The proceeds, alongside capital from a recent sale of 100 Bitcoins, will fund the expansion of its Michigan AI data center campus, which is anchored by a 10-year hosting agreement that could generate up to $3 billion in revenue.
Bitcoin-backed DeFi loan via Morpho
- ▪Hyperscale Data, Inc. secured approximately $30 million in outstanding Bitcoin-backed borrowings through the Morpho Protocol as of August 2, 2026.
- ▪The Bitcoin-backed borrowings obtained by Hyperscale Data, Inc. through the Morpho Protocol carry a variable interest rate of approximately 4.9%.
Michigan AI data center expansion
- ▪Alliance Cloud Services, a subsidiary of Hyperscale Data, Inc., signed a 10-year agreement on June 24, 2026, with a California-based neo-cloud AI provider for 20 megawatts of compute capacity.
- ▪The 10-year agreement for the Michigan AI data center could generate over $1.2 billion in revenue, or top $3 billion if a 32-megawatt option is exercised.
- ▪Hyperscale Data, Inc. is utilizing the proceeds from the Morpho Protocol borrowings to support the development of its Michigan AI data center campus.
Corporate Bitcoin treasury strategy
- ▪Following the sale of approximately 100 Bitcoins, Hyperscale Data, Inc. holds approximately 1,006 Bitcoins in its corporate treasury.
- ▪Hyperscale Data, Inc. established a Bitcoin-backed credit facility allowing the company to borrow against its remaining Bitcoin at variable rates of 4.5% to 5.0%.
- ▪Hyperscale Data, Inc. sold approximately 100 Bitcoins to help finance the construction and equipment acquisition for its Michigan AI data center.
DeFi integration in corporate finance
- ▪The Morpho Protocol is a decentralized finance lending protocol that enables overcollateralized Bitcoin-backed borrowing through blockchain-based smart contracts.
- ▪Hyperscale Data, Inc. implemented its Bitcoin-backed decentralized finance financing strategy through the Morpho Protocol to reduce reliance on dilutive equity financing.
Story comments
Loading comments…