en.Wedoany.com Reported - Hyperscale Data, Inc. (NYSE American: GPUS) announced the establishment of a Michigan AI Development Reserve Account with a target size of approximately $120 million, dedicated to supporting the ongoing development of its Michigan AI data center campus.
To provide investors with clearer visibility into the campus development progress, the Bitcoin-anchored AI data center company plans to publish monthly Michigan AI infrastructure progress reports starting July 2026. The reports are expected to cover the reserve account balance, current capital deployment, necessary construction progress, and other key development milestones.
Under a previously announced master services agreement with a California-based Neocloud provider, the customer has paid $10.6 million in upfront and non-recurring fees. The company has also begun allocating additional funds to the reserve account from capital raised through at-the-market offerings, with the majority of these amounts already used and continuing to support campus construction.
As of June 24, 2026, the company held approximately $94.8 million in cash, restricted cash, Bitcoin, and silver on its balance sheet. Management stated that establishing a dedicated reserve account and providing monthly infrastructure progress reports will help enhance funding and execution transparency for the Michigan AI infrastructure plan.
The company expects that the primary source of funds deposited into the Michigan reserve account will come from at-the-market offerings. Compared to other potential capital sources, the capital cost of at-the-market offerings is relatively low and does not increase the company's debt burden.
Funds in the reserve account will be used to directly support infrastructure improvements, construction, power distribution systems, cooling infrastructure, network equipment, and other capital expenditures at the Michigan campus, as well as to fund upgrades necessary for services under the master services agreement.
Under the previously announced master services agreement, the initial term is 10 years with two five-year renewal options, initially providing approximately 20 megawatts of critical AI computing capacity. If the customer exercises the maximum term, the agreement is expected to generate over $1.2 billion in revenue. The agreement also grants the customer the right to increase critical AI computing capacity by 32 megawatts, and if exercised within the first two years of the initial term and continuously extended, total contract revenue is expected to exceed $3 billion.
Milton "Todd" Ault III, Executive Chairman of Hyperscale Data, stated that the Michigan campus represents the most significant growth initiative in the company's history. By establishing a reserve account and providing monthly progress reports, the company aims to offer shareholders a consistent and direct way to monitor capital deployment and monthly execution progress. He expects the reserve account balance to grow over time as more capital is allocated to support infrastructure development.
Hyperscale Data operates data centers through its wholly-owned subsidiary, Sentinum, Inc., for mining digital assets and providing hosting services for the AI ecosystem and others. Another wholly-owned subsidiary, Ault Capital Group, Inc., is a diversified holding company. The company currently expects the spin-off of Ault Capital Group to occur in the second quarter of 2027.
