Hyperscale Data sold roughly 686 Bitcoin in August for about $43.4 million, using the proceeds to pay off every Bitcoin-backed loan it had on the decentralized lending protocol Morpho. The move clears the company's pledged collateral, but management says the cash on hand still won't cover operating needs for the next 12 months — raising doubts about its ability to continue as a going concern.
The Morpho payoff
As of June 30, Hyperscale had about $16 million of Morpho borrowings secured by cbBTC with a carrying value of $25.4 million. After the quarter closed, it pulled in another $31.6 million in net proceeds from additional Bitcoin-backed borrowing through the protocol. Then came the August sale: first 150.5 Bitcoin on Aug. 6, then the larger 686-Bitcoin sale that erased the remaining debt. With that, the company says it has no outstanding Morpho borrowings left.
A tight balance sheet
Hyperscale ended June with $36.8 million in cash and equivalents against $201.7 million in current liabilities. The first half of 2026 produced a $49.1 million consolidated net loss, and operations burned $9.9 million in cash. The company warns that available liquidity isn't expected to cover operating requirements, obligations and planned capital expenditures for the next 12 months.
Michigan build still unfunded
Management expects the roughly 20-megawatt deployment at its Michigan AI data center to require more than $100 million of investment over time. The timing and amount depend on financing availability. Paying off the Morpho loans removes a near-term collateral obligation, but it doesn't resolve how the build gets paid for.
The going concern warning puts the focus on Hyperscale's next move — whether it can line up fresh capital, sell more assets, or restructure before the cash runs out. The company hasn't said what that move will be.
