Hyperscale Data pledged Bitcoin on Morpho Protocol to raise $30M for its Michigan data center buildout. Shares dipped then recovered in pre-market trading.
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Hyperscale Data (GPUS) raised about $30 million by pledging Bitcoin holdings on the Morpho Protocol, a decentralized lending platform. The company plans to spend the money on its Michigan data center expansion and general working capital.
GPUS shares closed regular trading down 2.44% at $0.1200, then recovered 0.67% to $0.1205 in early pre-market activity.
The borrowing carries a floating interest rate of roughly 4.9% annually. Hyperscale Data retains ownership of the Bitcoin it deposited as collateral, a structure that unlocks capital from its crypto reserves without requiring a sale of the underlying tokens.
Morpho Protocol runs overcollateralized crypto lending through blockchain smart contracts. The platform lets companies access credit markets outside traditional banking channels.
Hyperscale Data deployed this financing after a July 30, 2026 announcement. By August 2, the company had drawn the full $30 million against its Bitcoin collateral, according to the filing.
The Michigan facility is being built under a previously disclosed master services contract with a large cloud infrastructure client that needs high-performance computing capacity. The fresh capital will cover construction, hardware purchases, and property improvements.
Management will also use some of the loan proceeds for day-to-day operations and general corporate needs. The Bitcoin-backed approach reduces the immediate pressure to raise equity, which would dilute existing shareholders.
The strategy turns Hyperscale Data's Bitcoin treasury from a passive holding into an active financing tool. Management argues this structure can reduce reliance on conventional debt with restrictive covenants. It also potentially cuts the need for equity-linked financing that lowers shareholder value.
There are risks. Crypto-collateralized borrowing exposes the company to margin calls if Bitcoin prices drop sharply. A significant decline in Bitcoin's value could force Hyperscale Data to post additional collateral or unwind positions. The floating rate also shifts as decentralized lending markets adjust.
Hyperscale Data plans to explore more Bitcoin-backed credit opportunities. The company said it will balance pledged collateral against unencumbered Bitcoin reserves to keep financial flexibility while funding infrastructure growth.
The move reflects a broader trend of companies using crypto holdings as collateral for working capital, rather than selling them. The borrowing terms remain tied to asset prices, interest rates, and the depth of decentralized lending markets.
For more on how companies are using crypto reserves for funding, see Quantum, Hyperscale Sell Crypto to Fund AI Data Centers.
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