Bitcoin treasury Hyperscale sells 686 BTC to clear loans but says cash won’t cover next 12 months

In August 2026, Hyperscale Data sold approximately 686 Bitcoin for about $43.4 million, then used part of the proceeds to repay all of its Bitcoin-backed loans on Morpho, a decentralized lending protocol, according to its quarterly filing.

The repayment released the pledged collateral and left the company with no outstanding Morpho borrowings, removing the immediate loan-related collateral exposure.

The result resolves one source of financing pressure, but leaves a larger problem flagged by the company. 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.

As of June 30, Hyperscale had roughly $16 million of Morpho borrowings secured by cbBTC with a carrying value of about $25.4 million. After the quarter ended, it received another $31.6 million in aggregate net proceeds from additional Bitcoin-backed borrowing through Morpho.

Hyperscale then sold the 686 Bitcoin in August 2026, and the filing says only that a portion of the $43.4 million in proceeds repaid the Morpho balances in full.

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The completed repayment is the key change from Aug. 6, when an earlier 150.5-Bitcoin sale happened. The filing says Hyperscale received the additional borrowing after June 30, before eliminating the DeFi debt altogether in August.

Hyperscale reported $36.8 million in cash and cash equivalents against $201.7 million in current liabilities as of June 30. For the first half of 2026, it recorded a $49.1 million consolidated net loss and used $9.9 million of cash in operating activities.

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 partly on financing availability, meaning the Morpho repayment removed a near-term collateral obligation without resolving how the build will be funded.

Hyperscale resolved its Morpho exposure, but the company must still raise or generate enough capital to meet its obligations and complete the Michigan deployment while operating under a going-concern warning.

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