Key facts
- Hyperscale Data has ceased all Bitcoin mining at its Michigan facility.
- The facility is being converted into an AI data center.
- The company's Bitcoin holdings have decreased by 79% to 215 BTC.
- A 10-year AI services agreement could generate over $1.2 billion.
- Hyperscale Data plans to sell its mining servers.
Hyperscale Data has ceased all Bitcoin mining operations at its Michigan facility as it pivots to establishing an artificial intelligence data center. The company announced that all Bitcoin miners have been switched off following an inspection by a neocloud provider from California. Hyperscale Data has secured a 10-year master services agreement with this customer for 20 megawatts (MW) of AI computing capacity, with options for two five-year extensions. The company estimates this contract could generate over $1.2 billion during the maximum 20-year term. An additional 32 MW option could potentially increase revenue beyond $3 billion, with the site ultimately supporting 340 MW. This strategic shift is also being funded by sales from Hyperscale's Bitcoin treasury. The company's Bitcoin holdings have decreased significantly, falling approximately 79% from about 1,006 BTC in late July to the current 215 BTC, valued at around $16.7 million. This reduction ranks Hyperscale 84th among public companies tracked for Bitcoin holdings. In parallel, Hyperscale Data's stock experienced a sharp decline, closing at a split-adjusted record low of $0.1984 on Wednesday, down about 17%. This drop followed a one-for-five reverse stock split that took effect on August 25.