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Hyperscale sells 686 Bitcoin to repay Morpho loans, warns of liquidity gap
The repayment cleared Hyperscale’s DeFi borrowing, but the company said available liquidity will not cover its next 12 months of operating needs and capex, and it had $16 million in Morpho borrowings as of June 30.
Hyperscale Data sold about 686 Bitcoin in August 2026 for roughly $43.4 million, then used part of the proceeds to repay all Bitcoin-backed loans on Morpho, according to the firm’s quarterly filing cited by CryptoSlate. The move released pledged collateral and eliminated any outstanding Morpho borrowings, removing the immediate collateral-related financing pressure.
CryptoSlate reported that Hyperscale still flagged a broader concern, saying its available liquidity is not expected to cover operating requirements, obligations, and planned capital expenditures over the next 12 months. In the filing, the company described ongoing going-concern doubts despite resolving the DeFi debt in August.
As of June 30, Hyperscale had about $16 million of Morpho borrowings secured by cbBTC, with a carrying value of roughly $25.4 million. After the quarter ended, it received an additional $31.6 million in net proceeds from more Bitcoin-backed borrowing through Morpho before selling the 686 Bitcoin.
The filing also points to funding needs for a roughly 20-megawatt Michigan AI data center deployment, saying the investment will total more than $100 million over time, with timing and scope depending partly on financing availability. For the first half of 2026, Hyperscale reported a $49.1 million consolidated net loss, held about $36.8 million in cash and cash equivalents against $201.7 million in current liabilities as of June 30, and used $9.9 million of cash in operating activities.
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