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

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 of the $22.375 million principal.

The July 31 notice started a required five-business-day countdown toward payment on or about Aug. 6. Bitzero expects its liens and security interests to be released after payment. As of Aug. 4, the payment had yet to occur, and the collateral remained under those liens.

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