Hyperscale Data Halts Michigan Bitcoin Mining, Shifts Focus to AI Data Center

Hyperscale Data announced the complete shutdown of Bitcoin mining operations at its Michigan facility to make way for an artificial‑intelligence (AI) data center customer. The move follows an inspection by a California‑based cloud provider and includes plans to sell the mining hardware.

AI Contract Drives Facility Conversion

The AI customer has signed a 10‑year master services agreement for 20 MW of computing capacity, with two optional five‑year extensions. Hyperscale estimates the contract could generate more than $1.2 billion over a potential 20‑year term, and up to $3 billion if the customer takes an additional 32 MW option. The site is designed to support up to 340 MW.

Bitcoin Treasury Decline

Since late July, Hyperscale’s Bitcoin holdings have fallen from roughly 1,006 BTC to 215 BTC, a drop of about 79%. The company sold approximately 65 BTC for $5.1 million in the week ending August 30, using the proceeds to fund the AI build‑out. BitcoinTreasuries.NET values the remaining 215 BTC at about $16.7 million, placing the firm 84th among public companies tracked for crypto holdings.

Stock Impact

Following the reverse stock split and the mining shutdown announcement, Hyperscale Data’s shares closed at $0.1984, down roughly 17% and marking a split‑adjusted record low on the NYSE American exchange.

Outlook and Risks

The company cautioned that its AI expansion plans remain preliminary and depend on financing, regulatory approvals, and the customer exercising all contract extensions. Revenue projections are contingent on those factors.