Bitcoin treasury Hyperscale sells 686 BTC to clear loans but says cash won’t cover next 12 months
In August 2026, Hyperscale Data offered roughly 686 Bitcoin for about $43.4 million, then used a part of the proceeds to repay all of its Bitcoin-backed loans on Morpho, a decentralized lending protocol, in accordance to its quarterly submitting.
The reimbursement launched the pledged collateral and left the corporate with no excellent Morpho borrowings, eradicating the quick loan-related collateral publicity.
(*12*) one supply of financing strain, but leaves a bigger downside flagged by the corporate. Hyperscale stated its accessible liquidity isn’t anticipated to cover working necessities, obligations, and deliberate capital expenditures for the next 12 months, elevating doubts about its skill to proceed as a going concern.
As of June 30, Hyperscale had roughly $16 million of Morpho borrowings secured by cbBTC with a carrying worth of about $25.4 million. After the quarter ended, it obtained one other $31.6 million in mixture web proceeds from extra Bitcoin-backed borrowing by means of Morpho.
Hyperscale then offered the 686 Bitcoin in August 2026, and the submitting says solely {that a} portion of the $43.4 million in proceeds repaid the Morpho balances in full.
The accomplished reimbursement is the key change from Aug. 6, when an earlier 150.5-Bitcoin sale occurred. The submitting says Hyperscale obtained the extra borrowing after June 30, earlier than eliminating the DeFi debt altogether in August.
Hyperscale reported $36.8 million in cash and cash equivalents towards $201.7 million in present liabilities as of June 30. For the primary half of 2026, it recorded a $49.1 million consolidated web loss and used $9.9 million of cash in working actions.
Management expects the roughly 20-megawatt deployment at its Michigan AI information heart to require greater than $100 million of funding over time. The timing and quantity rely partly on financing availability, which means the Morpho reimbursement eliminated a near-term collateral obligation with out resolving how the construct shall be funded.
Hyperscale resolved its Morpho publicity, but the corporate should nonetheless increase or generate sufficient capital to meet its obligations and full the Michigan deployment whereas working underneath a going-concern warning.
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