Quantum Solutions has raised its ETH sales cap to fund AI data centers, selling 1,000 ETH for $1.9 million amid significant losses.
Quantum Solutions, a Tokyo-based firm, has increased its sales cap to 4,375 ETH by October 30, allowing for a sale of nearly 66% of its June holdings. The company has already sold 1,000 ETH for $1.9 million to finance its AI data center operations.
Hyperscale Data Takes Similar Steps with Bitcoin
This move follows Hyperscale Data's liquidation of approximately 100 BTC to establish a bitcoin-backed credit line for its AI data center project in Michigan.
Quantum Solutions executed the ETH sale at a price of $1,903 per token on July 30, resulting in total proceeds of $1.903 million after fees. However, this sale is expected to incur a loss of about $100,970, considering the recorded value of ETH was $2,003.97 as of May 31. This sale price represents a 47% drop from the average acquisition cost of $3,595.02 reported in June.
In June, Quantum had previously sold 904 ETH for $1.61 million at an average price of $1,777 per token. Cumulatively, these sales have decreased its total ETH holdings by 29%, from 6,668.8 ETH to 4,764.8 ETH.
The board's approval for a higher sales limit reflects a strategic pivot in response to funding needs, with 3,050 ETH currently pledged as collateral to a Singapore-based financial firm and 1,714.8 ETH held in a trading account.
As a result of these transactions, Quantum Solutions is no longer Japan's largest publicly listed holder of ETH; Def Consulting now holds 4,976 ETH, according to recent data.
Quantum plans to use the proceeds from these sales for deposits on data centers, GPU servers, networking infrastructure, and operational expenses. The firm is also exploring the establishment of a data center in Japan through a nonbinding agreement with Integrated Capital, though details on financing and timelines remain undisclosed.
Meanwhile, Hyperscale Data has announced its strategies to finance its Michigan AI data center, including a bitcoin-backed credit facility with an expected interest rate ranging from 4.5% to 5%.
