An AI data center firm just raised $25 million, but 90% of it vanishes in days to pay off one massive loan

Aug. 5, 2026 at 4:05 pm GMT • 2 min read 01 Bitzero plans to use $22.375 million from its roughly $25 million placement to repay secured-loan principal on Aug. 6. 02 Special warrants could add 5.83 million shares automatically, with another 5.83 million possible at $5. 03 Final net proceeds and payoff costs remain undisclosed, so the cash left after repayment cannot yet be calculated.Data-center and AI infrastructure company, Bitzero Holdings, plans to use $22.375 million of its roughly $25 million private placement to repay secured-loan principal on or about Aug. 6. The principal alone would consume 89.5% of the headline proceeds, while the warrants issued with the financing could eventually add 11.7 million shares.The company closed the placement on July 30, after selling 5,828,342 special warrants at $4.25 each. The securities brought in $24.77 million, which Bitzero described as approximately $25 million.Bitzero has yet to disclose final net proceeds or the full payoff bill for its secured debt. With those figures missing, the cash left after repayment cannot be calculated. The prepayment notice puts accrued and unpaid interest and any other sum due on the payment date on top o...