Hyperscale Data, Inc. (NYSE American: GPU) has announced a new plan that combines two of today’s hottest trends, two artificial intelligence (AI) and Bitcoin.
The company launched a $100 million Bitcoin financial strategy while expanding its AI data center in Michigan, becoming a pure play AI and digital asset business.
Hyperscale Data’s stocks more than doubled in pre-market trading, falling down after an increase of 101% on Monday morning.
The plan is funded by selling HyperScale’s Montana Data Center assets and using the market equity program. By leaving Montana, the company will focus on its Michigan campus and Bitcoin accumulation strategy.
Michigan’s data centers are at the heart of the company’s growth. The 30 MW facility will now grow to 70 MW in 20 months using a new natural gas infrastructure that allows for on-site generation.
“This represents a pivotal moment in the evolution of hyperscale data.” said William B. Horn, CEO of Hyperscale Data.
“The Michigan campus is positioned to become an invaluable asset over time, and as Bitcoin is now serving as a core Treasury Reserve, we are building a company pinned down to the two most dynamic forces of the era: artificial intelligence and digital assets.”
Subsidiaries Sentinum, Inc. Through Hyperscale has been mining Bitcoin for years.
The company has around 11 BTC, worth around $1.2 million. All of that Bitcoin has been mined and not purchased in the open market. According to the company, this background provides the foundation of management expertise in digital assets.
HyperScale publishes weekly updates on digital asset holdings.
Hyperscale follows the Strategy Playbook, which has become Bitcoin’s main reserve asset. The $100 million program will become one of the world’s largest Bitcoin Treasury Department.
Hyperscale already has digital assets equal to almost 12% of its market capitalization before new financial plans are in place.
Industry experts say companies’ adoption of Bitcoin is even more crowded. While companies in the US, Europe and Asia have built Treasury ministries, rising rates and volatility make it difficult to succeed.
Bitcoin does not generate revenue like traditional assets, so companies need to rely on price increases and operational capabilities to support their strategy.
Hyperscale data is another example of struggling companies turning their eyes to Bitcoin’s Treasury in the hopes of opening new doors. The company’s stock is on a downward trend despite several reverse stocks being split. Last year alone, it fell from $5.82 to $0.45.
HyperScale focuses on the Michigan AI data center and believes that employing the Bitcoin Treasury is what the company needs.
“We are pursuing a dual strategy designed to create long-term value for shareholders by focusing our resources to accelerate Bitcoin accumulation while expanding Michigan.” Horn said.