Bitcoin treasury company Hyperscale Data sold 686 Bitcoin for $43.4 million in August 2026 and used the proceeds to fully repay all of its Bitcoin-backed loans on the Morpho decentralized lending protocol, according to the company’s quarterly filing. The repayment cleared pledged collateral but left the company warning that available liquidity will not cover operating requirements, obligations, and planned capital expenditures for the next 12 months.
“Hyperscale said its available liquidity is not expected to cover operating requirements, obligations, and planned capital expenditures for the next 12 months, raising doubts about its ability to continue as a going concern,” the company stated in its filing.
Debt Elimination and Collateral Release
As of June 30, 2026, Hyperscale carried $16 million in Morpho borrowings secured by cbBTC with a $25.4 million carrying value. After June 30, the company received $31.6 million in aggregate net proceeds from additional Bitcoin-backed borrowing through Morpho. The August sale and subsequent repayment removed the company’s immediate loan-related collateral exposure on the protocol.
An earlier Bitcoin sale in August involving 150.5 Bitcoin also occurred before the larger 686-Bitcoin transaction.
Liquidity Position and Operating Losses
Hyperscale reported $36.8 million in cash and cash equivalents as of June 30 against $201.7 million in current liabilities. The company recorded a consolidated net loss of $49.1 million in the first half of 2026 and used $9.9 million of cash in operating activities during the same period.
The going-concern warning reflects the gap between available liquidity and near-term obligations. Management expects the company’s Michigan AI data center deployment to require more than $100 million of investment over time, with timing and amount dependent partly on financing availability. The facility is designed to operate at 20 megawatt capacity.
The debt repayment eliminates a specific liability but does not address the broader liquidity shortfall flagged in the company’s filing.
