Bitcoin mining company Hyperscale Data sold about 100 bitcoin to raise funds to build an artificial intelligence (AI) data center in the U.S. state of Michigan. It also secured bitcoin-backed credit.

On July 30, blockchain outlet Cointelegraph reported the company plans to use the funds for campus construction, core infrastructure and equipment that takes time to deliver.

The move is drawing attention because a bitcoin mining company used its holdings to fund AI infrastructure investment. Hyperscale Data said the proceeds from the bitcoin sale would be used to build the Michigan campus. It said the bitcoin-backed credit facility is expected to provide additional funding on a floating-rate basis of about 4.5 to 5.0 percent.

The Michigan campus the company is pursuing is a facility supporting a master services agreement with an unnamed AI infrastructure provider that it previously disclosed. The agreement includes an initial AI computing capacity of about 20 megawatts (MW). The term is 10 years, with 2 options to extend by 5 years. The company said it could generate more than $1.2 billion in revenue if the contract is fully executed.

There is also potential for expansion. The AI infrastructure provider can expand capacity to 32 MW within 2 years of signing, and the company said the total contract value could exceed $3 billion if that option is exercised and maintained through the extension period.

The investment also aligns with Hyperscale Data's business restructuring. The company previously operated under the name Ault Alliance and changed its name to Hyperscale Data in 2024. At the time, it kept its bitcoin mining business while shifting its focus to AI infrastructure.

Market reaction was favorable. Shares of Hyperscale Data, listed on NYSE American under the symbol GPUS, rose more than 5 percent at one point during trading on July 30. Investors appear to have reacted to the company's effort to speed up execution of the AI infrastructure contract by using both its digital assets and external borrowing.

The company has not sharply reduced its bitcoin holdings. Based on bitcoinTreasuries.net data, Hyperscale Data still holds about 1,006 bitcoin. That is the 44th-largest bitcoin holding among listed companies. The company has monetised some financial assets while maintaining its bitcoin holding base as a mining company.

The fundraising also reflects a trend in which miners' revenue structures are expanding into AI infrastructure. Hyperscale Data is seeking to secure a long-term AI infrastructure revenue source through the Michigan campus in addition to its existing mining business. The key points to watch are whether the initial 20 MW translates into actual revenue and whether the additional 32 MW option is exercised, expanding the contract to around $3 billion.