Z Squared Secures 42 MW AI Power Through Zero-Debt, Zero-Cash Deal
ZSQR•Z Squared agreed to acquire Skycore Digital’s 42 MW of AI-ready power—24 MW energized at closing and 18 MW under Duke Energy Letters of Authorization—using newly designated Series B convertible preferred shares to avoid cash outlays, debt, or dilution. Post-transaction common share count stands at 51.43 million.
1. Acquisition of Skycore Digital
Z Squared’s May 15 Form 10-Q confirms a binding letter of intent to acquire Skycore Digital, securing a total of 42 MW of AI-ready power capacity. The deal delivers 24 MW of energized Duke Energy capacity at closing and secures an additional 18 MW under existing Duke Energy Letters of Authorization.
2. Financing Structure Preserves Capital
The entire Skycore transaction is funded through newly designated Series B convertible preferred shares, resulting in zero cash outlay, zero debt, zero interest expense and no equity dilution. Following the deal, the company maintains a tight capital structure with 51,431,493 common shares outstanding.
3. Strategic Implications for AI Infrastructure
By locking in 42 MW of grid-connected AI power without depleting cash or taking on debt, Z Squared strengthens its position in the high-demand AI compute market. This capacity complements its vertically integrated model—cryptocurrency mining, power generation, data center development and high-performance compute hosting—enhancing future growth optionality.
