Hyperscale Data has ended all Bitcoin mining operations at its Michigan facility as it transitions the site to serve an artificial intelligence data center customer. The company switched off all Bitcoin miners following an inspection by the unnamed California-based neocloud provider and plans to sell the associated mining equipment.
Under a 10-year master services agreement with two optional five-year extensions, the AI customer has contracted for 20 megawatts of computing capacity. Hyperscale estimates the deal could generate more than $1.2 billion over the maximum 20-year term, with potential revenue exceeding $3 billion if the customer exercises an additional 32 megawatt option. The Michigan site is expected to support up to 340 megawatts total capacity.
The company is funding the infrastructure conversion through sales from its Bitcoin treasury. However, Hyperscale cautioned that expansion plans remain preliminary and subject to financing approvals and other risks. The financial projections depend on the customer exercising optional capacity and term extensions.
Stock Decline and Bitcoin Holdings Reduction
Hyperscale Data shares closed at $0.1984 on Wednesday, down approximately 17% and marking a split-adjusted record low for the NYSE American-listed company. The decline followed a one-for-five reverse stock split that took effect on August 25.
The company has significantly reduced its Bitcoin holdings while funding the Michigan development. In early July, Hyperscale held approximately 1,006 Bitcoin. By the week ending August 30, it had sold about 65 BTC for $5.1 million, with proceeds designated for the Michigan project.
According to BitcoinTreasuries.NET, Hyperscale now holds 215 Bitcoin, worth approximately $16.7 million. This represents a decline of roughly 79% from July levels and places the company 84th among public companies tracked by the platform.
