Z Squared announced that it has entered into a $50 million committed equity forward purchase agreement with LucentHash / Data Part Capital, providing the company with flexible financing to support its AI infrastructure growth strategy. The agreement is designed to help fund acquisitions and site conversion projects as they progress, supporting Z Squared’s Phase 1 objective of developing 100 megawatts of AI-ready capacity across multiple U.S. locations.
Under the agreement, each capital draw is structured as a separate forward purchase transaction initiated at Z Squared’s discretion. The pricing for each draw is set at 95% of the volume-weighted average stock price over a five-day pricing period, and shares issued through the agreement will be subject to a nine-month lock-up period. The purchaser is also prohibited from short-selling or hedging Z Squared stock.
The company said the structure allows it to access capital as operational milestones are achieved rather than raising funds in advance, helping align financing needs with project execution while avoiding additional debt.
David Halabu, CEO of Z Squared, said the company is pursuing a significant opportunity in AI infrastructure while maintaining a strong balance sheet with minimal debt. He noted that the agreement provides flexible equity capital that can be deployed alongside acquisitions and site-level conversion milestones without increasing leverage.
The financing announcement comes as Z Squared advances its Phase 1 expansion strategy. The company recently signed a binding letter of intent to acquire Skycore Digital, which owns three operating sites in North Carolina powered by Duke Energy. The sites provide up to 42 megawatts of total potential capacity, including 18 megawatts currently available under existing Duke Energy Letters of Authorization.
According to Z Squared, the Skycore acquisition represents the first step toward its 100-megawatt Phase 1 target. The company is also evaluating additional acquisition opportunities focused on energized, grid-connected sites that can be converted into AI-ready infrastructure more quickly than greenfield developments.
Z Squared, which listed on the Nasdaq Global Market in April 2026, currently operates advanced computing infrastructure and is expanding into AI-focused colocation and data center services. Its strategy centers on acquiring powered sites, converting them for AI workloads, and scaling deployments in line with customer demand and operational readiness.
KEY QUOTE:
“Z Squared is moving into a significant AI infrastructure opportunity from a position of strength, with virtually no debt on the balance sheet. We believe this agreement strengthens that position with flexible equity capital that can be matched to acquisitions and site-level conversion milestones without adding leverage. We intend to move quickly, but with discipline, as we build toward our Phase 1 objective.”
David Halabu, Chief Executive Officer, Z Squared
