NYSE-listed Hyperscale Data, Inc. said Tuesday that it sold part of its Bitcoin position last week after increasing its holdings in July.
The company reported that it held 958.5352 Bitcoin as of Aug. 2, worth more than $61 million at current prices. Those holdings are spread across its subsidiaries, Sentinum, Inc. and Ault Capital Group, Inc.
Company sold about 150.5 BTC last week
In a statement, Hyperscale said it sold roughly 150.5 BTC last week. At the same time, Ault Capital Group purchased about 15 BTC on the open market.
A week earlier, the company had said it held more than 1,106 Bitcoin, a position then valued at nearly $70 million.
Long-term position remains in place
Executive Chairman Milton Todd Ault III said Hyperscale plans to keep its long-term Bitcoin position while using the asset for short-term flexibility to fund data center operations. He said the company hopes that approach will generate significant cash flow this year and next.
"We are confident in our ability to use Bitcoin as pristine collateral to further refine our overall capital allocation strategy," Milton Todd Ault III said.
$100 million digital asset treasury plan
Hyperscale said it plans to build a $100 million digital asset treasury and reach full parity between its Bitcoin holdings and its market value.
According to Bitcoin Magazine, the company is following the path taken by Strategy, formerly known as MicroStrategy, by using spare cash to buy Bitcoin. Strategy shifted in 2020 from selling traditional software to buying Bitcoin, giving investors exposure to the asset through its Nasdaq-listed shares.
The report added that despite aggressive purchases this year and last year, Strategy has halted buying over the past six weeks and has also sold Bitcoin to generate more cash flow, as its stock price has come under pressure and Bitcoin trades nearly 50% below its October record.