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Hyperscale Data ends Michigan BTC mining as holdings fall 79%
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- DeepHorus
Hyperscale Data has permanently halted all Bitcoin mining operations at its Michigan facility, marking a significant strategic pivot toward artificial intelligence infrastructure. The company switched off all miners following an inspection by an unnamed California-based neocloud provider and now plans to sell the associated mining equipment. This shutdown is the latest step in converting the site from cryptocurrency production to an AI data center, a transition funded by liquidating its Bitcoin treasury.
The move is driven by a new 10-year master services agreement with the AI customer. The contract secures 20 megawatts (MW) of computing capacity and may generate over $1.2 billion in revenue if two five-year extensions are exercised. An additional 32 MW option could potentially lift the total value above $3 billion over a maximum 20-year term, though the full site is expected to support up to 340 MW.
Hyperscale Data has financed this transformation by substantially reducing its Bitcoin holdings. The company held approximately 1,006 BTC in late July but has since sold down to just 215 BTC, a decline of about 79%. In the week ending August 30, it sold 65 BTC for $5.1 million, with proceeds directed to the Michigan development project.
The company's stock has reacted poorly to these developments. Shares closed at $0.1984 on Wednesday, a split-adjusted record low, after falling about 17%. This decline occurred shortly after the company executed a one-for-five reverse stock split, with shares beginning to trade on a split-adjusted basis on August 25.
Management has emphasized that the ambitious AI expansion plans remain preliminary and subject to financing, approvals, and other risks. The significant revenue projections are contingent on the customer exercising optional extensions and taking additional capacity. The company's public profile has also diminished, now ranking 84th among public companies tracked by BitcoinTreasuries.NET with its reduced holdings.
Hyperscale Data's transformation illustrates a broader trend of companies reallocating capital from volatile crypto assets toward the high-demand AI compute sector. The long-term success of this pivot will depend on securing final approvals, attracting further financing, and fulfilling the substantial infrastructure build-out required for the 340 MW site.
