Hyperscale Data Halts Michigan Bitcoin Mining, Shifts Toward AI Computing

Hyperscale Data announced the complete shutdown of Bitcoin mining at its Michigan facility effective September 1, 2026, as it begins converting the site for artificial‑intelligence (AI) computing services.

Bitcoin treasury reduced by 79%

The company’s Bitcoin holdings fell from roughly 1,006 BTC in late July to about 215 BTC by the end of August, a decline of approximately 79 %. The remaining BTC were valued at roughly $16.7 million at the time of the latest treasury update.

Asset sales fund AI data‑center build‑out

During the week ending August 30, Hyperscale sold around 65 BTC for $5.1 million, using the proceeds to finance engineering, equipment procurement and other costs for the AI conversion. In total, about 791 BTC were disposed of within a month.

AI computing contract details

• Customer contracted 20 MW of AI computing capacity under a master services agreement.
• Initial term is 10 years, with two optional five‑year extensions.
• Potential revenue exceeds $1.2 billion over 20 years if extensions are exercised.
• Customer may add another 32 MW, which could raise total projected revenue above $3 billion.
• The Michigan site could eventually support up to 340 MW; the current agreement would use about 20 % of that capacity.

Mining equipment disposition

Following the shutdown, Hyperscale will sell the Bitcoin mining servers removed from the Michigan facility. The company has not disclosed the number of units, models, book values or expected proceeds.

Stock impact

Shares closed at $0.1984 on September 2, down roughly 17 % and marking a split‑adjusted record low after a one‑for‑five reverse stock split completed on August 25.

Future outlook

The next milestones include preparing the initial 20 MW for the AI customer, completing equipment sales and reporting revenue from the initial contract term. Hyperscale also plans a divestiture of Ault Capital Group in 2027, after which the company would focus on data‑center operations and digital‑asset holdings.