Hyperscale Data, Inc., an artificial intelligence ("AI") data center company anchored by Bitcoin ("Hyperscale Data" or the "Company"), announced that it has successfully implemented its Bitcoin-backed decentralized finance ("DeFi") financing strategy through the Morpho Protocol, establishing the ability to borrow against its Bitcoin treasury at competitive and variable institutional financing rates, a strategy that the Company outlined in a press release issued on July 30, 2026.

The Company had approximately $30 million outstanding under Bitcoin-backed borrowings obtained through the Morpho Protocol. The borrowings are secured by a portion of the Company's Bitcoin holdings and bear a current variable interest rate of approximately 4.9%. The proceeds are being utilized to support the continued development of the Company's Michigan AI data center campus pursuant to its previously announced master services agreement with a leading AI-based neocloud provider, as well as for working capital and other general corporate purposes, while allowing the Company to retain long-term ownership of the Bitcoin serving as collateral.

The financing represents an important evolution in Hyperscale Data's capital allocation strategy by transforming the Company's Bitcointreasury from a passive reserve asset into a productive source of low-cost growth capital. Rather than relying solely on traditional financing alternatives or liquidating digital assets to fund expansion, the Company believes Bitcoin-backed financing provides an efficient source of liquidity while preserving meaningful long-term exposure to potential appreciation in its Bitcoin holdings.

The Company believes this strategy enhances financial flexibility, strengthens its capital structure, and has the potential to reduce reliance on more dilutive forms of equity financing and potentially onerous and restrictive forms of debt financing while supporting the continued build-out of its Michigan AI data center campus and other long-term strategic initiatives.

"This is a significant milestone in the evolution of Hyperscale Data's capital strategy," said Milton "Todd" Ault III, Executive Chairman of Hyperscale Data. "We believe Bitcoin is no longer simply a treasury asset—it is a strategic financial asset capable of generating liquidity without sacrificing ownership. By utilizing decentralized finance through the Morpho Protocol, we have demonstrated that our Bitcointreasury can become a low-cost source of institutional capital while allowing us to continue participating in Bitcoin's long-term appreciation. We expect to continue maintaining a disciplined balance between unencumbered Bitcoin and Bitcoin-backed borrowings, giving us the flexibility to fund growth opportunities, including the expansion of our Michigan AI data center, while thoughtfully managing our overall capital structure.

"We believe decentralized finance represents the next generation of corporate finance. As institutional adoption of Bitcoin accelerates, we expect Bitcoin-backed lending to become an increasingly important financing tool for companies with digital asset treasuries. We intend to continue expanding our use of these innovative financing solutions as we build long-term stockholder value."

The Morpho Protocol is a decentralized finance lending protocol that enables institutional-quality, overcollateralized Bitcoin-backed borrowing through blockchain-based smart contracts, which are self-executing digital programs stored on a blockchain that automatically take actions when predetermined criteria are met.

The Company expects to continue evaluating additional Bitcoin-backed financing opportunities and other innovative treasury management strategies designed to enhance financial flexibility, support long-term growth and maximize stockholder value.