Hyperscale Data ends Bitcoin mining at Michigan site for AI data center conversion

Hyperscale Data has ended all Bitcoin mining operations at its Michigan facility as it prepares the site for an artificial intelligence data center customer.

On Wednesday, the company said that all Bitcoin miners at the facility were switched off following an inspection by the unidentified California-based neocloud provider. Hyperscale said it intends to sell the associated mining equipment.

Hyperscale said the AI customer has contracted for 20 megawatts (MW) of computing capacity under a 10-year master services agreement with two optional five-year extensions. The agreement may generate more than $1.2 billion over the maximum 20-year term. An additional 32 MW option could lift potential revenue above $3 billion, while the site is expected to support 340 MW.

The shutdown marks a further step in Hyperscale’s conversion of its Michigan facility from Bitcoin mining to AI infrastructure, a project it is funding through sales from its Bitcoin treasury.

Hyperscale cautioned that its expansion plans remain preliminary and subject to financing, approvals and other risks. The $1.2 billion estimate requires the customer to exercise both extension options, while the $3 billion projection also depends on it taking the additional capacity.

Hyperscale Data stock slides to record low

According to Yahoo Finance data, Hyperscale Data shares closed at $0.1984 on Wednesday, down about 17%, after touching an intraday low of $0.1932. The closing price marked a split-adjusted record low for the NYSE American-listed stock.

The decline came shortly after Hyperscale completed a one-for-five reverse stock split. Its shares began trading on a split-adjusted basis on Aug. 25, according to a filing with the US Securities and Exchange Commission.

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Hyperscale has also reduced its Bitcoin holdings sharply while funding the AI buildout. On July 30, the company held about 1,006 Bitcoin and had sold 100 BTC while arranging a BTC-backed credit facility for the Michigan campus.

On Tuesday, the company said that it sold about 65 BTC for $5.1 million during the week ending Aug. 30. Hyperscale said the proceeds would provide additional capital for the Michigan development.

BitcoinTreasuries.NET now lists Hyperscale as holding 215 BTC, worth about $16.7 million. This represents a 79% decline from the amount cited in July and leaves it ranked 84th among public companies tracked by the platform.