Hyperscale Data pivots Michigan facility from Bitcoin mining to AI

Hyperscale Data has ceased all Bitcoin mining operations at its Michigan facility to repurpose the site for artificial intelligence computing. Following an inspection by an unidentified California-based neocloud provider, the company switched off its mining equipment and announced plans to sell the hardware.

The transition is being funded by liquidating the company’s Bitcoin treasury. Hyperscale’s holdings dropped approximately 79%, falling from 1,006 BTC in late July to roughly 215 BTC by the end of August.

A customer has signed a master services agreement for 20 megawatts (MW) of AI computing capacity for an initial 10-year term, with two optional five-year extensions. Hyperscale estimates this contract could generate over $1.2 billion in revenue over a potential 20-year period. If the customer exercises an additional 32 MW capacity option, total revenue could exceed $3 billion. The site is expected to eventually support up to 340 MW.

Following these developments, Hyperscale Data shares experienced a significant decline, closing at $0.1984 on Wednesday, a 17% drop that marked a split-adjusted record low for the NYSE American-listed company.