Hyperscale Data Inc. announced plans to invest $100 million in Bitcoin as a treasury reserve asset while accelerating expansion of its Michigan artificial intelligence data center operations. The NYSE American-listed company will fund the cryptocurrency strategy through proceeds from selling its Montana data center assets and capital raised through an equity program.
What to Know:
- The company plans to hold Bitcoin as a primary treasury reserve asset, similar to MicroStrategy's approach, while publishing weekly crypto holdings reports for transparency
- Hyperscale's Michigan facility currently operates at 30 megawatts but could potentially expand to 340 MW capacity, subject to utility agreements and regulatory approval
- The firm operates through subsidiary Sentinum Inc., which has mined Bitcoin for years and provides data center services for AI and high-performance computing clients
AI Infrastructure Focus Drives Corporate Strategy Shift
The Las Vegas-based holding company operates its primary data center through wholly owned subsidiary Sentinum Inc., which has maintained Bitcoin mining operations for several years. Chief Executive Officer William B. Horne described the move as positioning the company around "two of the most dynamic forces of our era: artificial intelligence and digital assets."
The Michigan facility, owned by Alliance Cloud Services LLC, currently provides approximately 30 megawatts of power capacity for customer-installed NVIDIA graphics processing unit servers. These systems enable advanced AI and high-performance computing workloads for enterprise clients.
Hyperscale plans a staged expansion that could reach 70 MW over the next 20 months through new natural gas distribution infrastructure. The company anticipates the Michigan campus could eventually expand to approximately 340 MW of capacity, though this depends on reaching agreements with local utility providers and navigating regulatory requirements.
The facility targets enterprise AI and cloud clients deploying GPU-based infrastructure. NVIDIA technology remains central to customer demand at the location.
Financial Structure and Asset Divestiture Plans
The company expects to complete divestiture of subsidiary Ault Capital Group Inc. in the first quarter of 2026. ACG currently provides services across multiple industries, including AI software platforms, social gaming, equipment rental, defense and aerospace operations.
Following the divestiture, Hyperscale will focus exclusively on data center operations supporting high-performance computing services and digital asset holdings. The company issued one million shares of Series F Exchangeable Preferred Stock to common stockholders in December 2024 as part of the divestiture structure.
Only holders of Series F Preferred Stock who participate in the exchange offer will receive shares in ACG after the divestiture occurs. The company maintains headquarters at 11411 Southern Highlands Parkway in Las Vegas. ACG also operates a licensed lending subsidiary providing private credit and structured finance services. The subsidiary maintains strategic investments and wholly owned operations across automotive, industrial, and hotel sectors.
Key Terms and Market Context
Bitcoin serves as a decentralized digital currency that companies increasingly adopt as a treasury reserve asset. MicroStrategy pioneered this corporate approach, accumulating billions in Bitcoin holdings since 2020.
High-performance computing refers to advanced computational systems that process complex calculations at speeds far exceeding standard computers. These systems prove essential for AI model training and deployment.
Graphics processing units originally designed for rendering computer graphics now power most AI and machine learning applications. NVIDIA dominates this market with specialized AI chips. Megawatts measure electrical power capacity, with data centers requiring substantial energy for cooling and computing operations. A 340 MW facility would rank among the largest data centers globally.
Final Thoughts
Hyperscale Data's dual strategy combines cryptocurrency treasury management with AI infrastructure expansion, reflecting broader corporate adoption of digital assets alongside growing demand for AI computing resources. The company's success depends on executing both the Michigan facility expansion and maintaining Bitcoin accumulation amid market volatility.
