Hyperscale Data Shuts Down Bitcoin Mining for $1.2 Billion AI Deal at Michigan Data Center

Bitcoin Miner Ditches Site for AI Deal That Could Top $1.2 Billion

The company plans to sell its mining servers as it prepares the facility for AI operations. Hyperscale Data shut down Bitcoin mining operations at its Michigan data center on Tuesday to make room for an AI customer whose contract could generate more than $1.2 billion over 20 years, the company said. In an announcement on Wednesday, Hyperscale said the previously announced deal could generate more than $1.2 billion if the customer exercises both five-year extensions to the initial 10-year term. The agreement covers 20 megawatts of capacity for an unnamed California-based provider of cloud computing services for AI. "The immediate shutdown of the Bitcoin mining operations allows our team to focus the Facility's power, infrastructure and resources in preparing the Facility for its usage by our Customer," CEO William Horne said in the announcement. According to Hyperscale, the agreement gives the customer an option to add 32 megawatts within the first two years. The company said exercising that option and both five-year extensions could bring total contract revenue above $3 billion. "Further, as the expansion of the Facility to support AI computing infrastructure progresses, it is my belief that our stockholders will be rewarded as the Company's market capitalization, which currently trades at a significant discount to other data center companies, begins to normalize in comparison to its available contracted power capacity," Horne added. Hyperscale plans to sell the mining servers and expects gains from those sales. It did not announce a start date for AI operations, and the mining shutdown concerns the Michigan site. Other miners have been converting sites to serve AI customers. VanEck's head of digital asset research, Matthew Sigel, argued in March that miners are "sitting on a gold mine " and could profit from repurposing their infrastructure as demand for AI computing grows. The cost of that shift, however, can be substantial, as was evident in IREN's quarterly results released last month: AI cloud revenue surpassed Bitcoin mining revenue for the first time, but the company also wrote down $450.4 million in asset values, mostly tied to mining equipment it had retired.

Hyperscale Data Ends Michigan Bitcoin Mining for AI

Hyperscale Data's Bitcoin holdings have fallen about 79% since late July to 215 BTC as it redirects capital toward its Michigan AI data center. Hyperscale Data has ended all Bitcoin mining operations at its Michigan facility as it prepares the site for an artificial intelligence data center customer. On Wednesday, the company said that all Bitcoin miners at the facility were switched off following an inspection by the unnamed California-based neocloud provider. Hyperscale said it intends to sell the associated mining equipment. Hyperscale said the customer has contracted for 20 megawatts (MW) of AI computing capacity under a 10-year master services agreement with two optional five-year extensions. The company estimated that the agreement would generate more than $1.2 billion over the maximum 20-year term. An additional 32 MW option could lift potential revenue above $3 billion, while the site is expected to support 340 MW. The shutdown marks a further step in Hyperscale's conversion of its Michigan facility from Bitcoin mining to AI infrastructure, a project it is also funding through sales from its Bitcoin treasury. Hyperscale also cautioned that its expansion plans remain preliminary and subject to financing, approvals and other risks. The $1.2 billion estimate requires the customer to exercise both extension options, while the $3 billion projection also depends on it taking the additional capacity. Hyperscale Data stock slides to record low According to Yahoo Finance data, Hyperscale Data shares closed at $0.1984 on Wednesday, down about 17%, after touching an intraday low of $0.1932. The closing price marked a split-adjusted record low for the NYSE American-listed stock. The decline came shortly after Hyperscale completed a one-for-five reverse stock split. Its shares began trading on a split-adjusted basis on Aug. 25, according to a filing with the US Securities and Exchange Commission. Hyperscale has also reduced its Bitcoin holdings sharply while funding the AI buildout. On July 30, the company held about 1,006 Bitcoin and had sold 100 BTC while arranging a BTC-backed credit facility for the Michigan campus. On Tuesday, the company said that it sold about 65 BTC for $5.1 million during the week ending Aug. 30. Hyperscale said the proceeds would provide additional capital for the Michigan development. BitcoinTreasuries.NET now lists Hyperscale as holding 215 BTC, worth about $16.7 million. This represents a decline of about 79% from the amount cited in July and leaves it ranked 84th among public companies tracked by the platform.

Hyperscale Data halts bitcoin mining to prepare for AI shift By Investing.com

LAS VEGAS - Hyperscale Data, Inc. (NYSE American:GPUS) ceased all bitcoin mining operations at its Michigan data center on Monday to prepare the facility for AI infrastructure deployment under a previously announced master services agreement. The company turned off all bitcoin miners effective September 1, 2026, according to a press release statement. The shutdown follows a facility inspection by a California-based neocloud provider with which Hyperscale Data has a contract to deploy 20 megawatts of AI data center capacity. The master services agreement has an initial 10-year term with two five-year extension options. If exercised for the maximum 20-year term, the contract is expected to generate revenue exceeding $1.2 billion. The agreement includes a right for the customer to add 32 megawatts of additional capacity within the first two years, which could increase total contract revenue to more than $3.0 billion if exercised through the full extension period. The Michigan facility has an estimated eventual total power capacity of approximately 340 megawatts. Even if the customer exercises all expansion options, the deployment would require approximately 20% of the total anticipated capacity, leaving roughly 80% available for additional customers and future expansion, subject to successful development and availability of the planned power capacity. "The immediate shutdown of the bitcoin mining operations allows our team to focus the Facility's power, infrastructure and resources in preparing the Facility for its usage by our Customer," stated William Horne, chief executive officer. The company expects to recognize additional gains from the intended sale of bitcoin mining servers. Hyperscale Data operates through its wholly owned subsidiary Sentinum, Inc., which owns and operates the data center. The company cautioned that expansion concepts remain preliminary and subject to risks and uncertainties, with no assurance that expansion capacity will ultimately be available, developed, financed or economically viable. This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.