Z Squared Secures $50M Equity Forward for 100MW AI Capacity Buildout
ZSQR•Z Squared secured a $50 million equity forward purchase agreement at 95% of five-day VWAP with a nine-month lock-up, enabling draws to fund acquisitions and conversions without adding debt. The company signed an LOI to acquire Skycore Digital’s three North Carolina sites totaling 42 MW of potential capacity.
1. Equity Forward Purchase Agreement
Z Squared entered into a $50 million committed equity forward purchase agreement with LucentHash/Data Part Capital, priced at 95% of the five-day volume-weighted average price for each draw. The structure allows the company to determine timing and amount of each draw, staggers capital in line with acquisition and conversion milestones, imposes a nine-month lock-up on issued shares and prohibits hedging by the purchaser.
2. Phase 1 AI Infrastructure Strategy
The agreement underpins Z Squared’s Phase 1 goal of 100 MW of AI-ready capacity across multiple U.S. sites by providing flexible equity capital without adding leverage. Draws can be matched to site-level conversion milestones, ensuring disciplined deployment of funds as operational targets are met.
3. Skycore Digital Acquisition
Z Squared signed a binding letter of intent to acquire Skycore Digital’s three North Carolina sites, which collectively offer up to 42 MW of potential capacity, including 18 MW currently authorized by Duke Energy. This transaction represents the first step toward the 100 MW Phase 1 objective and leverages existing energized, grid-connected infrastructure for rapid AI workload conversion.
