Hyperscale Sells 686 BTC to Repay Morpho Loans, Flags Shortfall

In August 2026 Hyperscale Data sold approximately 686 Bitcoin for about $43.4 million and applied part of the proceeds to fully repay its Bitcoin-backed loans on Morpho, according to the company’s quarterly filing. The repayment released pledged Bitcoin collateral and eliminated Hyperscale’s outstanding borrowings on the decentralized lending protocol.

The August sale followed an earlier transaction on Aug. 6 in which Hyperscale sold 150.5 Bitcoin. As of June 30 the company reported roughly $16 million of Morpho borrowings secured by coin-backed Bitcoin (cbBTC) with a carrying value of about $25.4 million. After the quarter ended the company recorded about $31.6 million in aggregate net proceeds from additional Bitcoin-backed borrowing through Morpho, then completed the 686-Bitcoin sale and used a portion of the $43.4 million to repay the Morpho balances in full.

Hyperscale reported $36.8 million in cash and cash equivalents as of June 30, 2026, and $201.7 million in current liabilities. For the first half of 2026 the company recorded a consolidated net loss of $49.1 million and used $9.9 million of cash in operating activities. The filing states available liquidity is unlikely to cover operating requirements, obligations and planned capital expenditures for the coming 12 months and includes a continuing going-concern warning.

Management expects the planned roughly 20-megawatt deployment at its Michigan AI data center to require more than $100 million of investment over time. The filing notes the timing and total amount will depend on financing availability. The repayment removed the near-term collateral obligation on Morpho but did not resolve how the Michigan build will be funded.

The filing does not disclose any new financing commitments. It reports that while the Morpho exposure has been cleared, the company still faces significant near-term liabilities and capital needs for its Michigan project.