Hyperscale Data has ceased all Bitcoin mining operations at its Michigan facility and has begun repurposing the site for an AI computing client. The company disclosed that this transition took effect on September 1, with existing mining equipment being gradually sold off and a portion of Bitcoin reserves liquidated to support data center development.
The 20 MW AI contract has been initiated.
The company stated that a new cloud computing provider from California signed a contract for 20 MW of critical AI computing capacity following an on-site visit. The two parties have entered into a master service agreement with an initial term of 10 years, and the customer also has the option to renew twice, each for an additional five years.
According to the company’s calculations, if the customer completes all renewals, the total contract revenue over 20 years could exceed $1.2 billion. If the customer adds an additional 32 MW of capacity within two years and continues using it through the full renewal period, total revenue could surpass $3 billion. However, both figures are contingent on the customer further expanding capacity and renewing contracts in the future and do not represent guaranteed revenue.
- Initial contracted capacity is 20 MW.
- The initial contract term is 10 years.
- The customer has two additional options to renew for five years each.
Bitcoin holdings decreased by approximately 79% over one month.
In support of project development, Hyperscale significantly reduced its Bitcoin reserves over the past month. As of July 30, the company held approximately 1,006 BTC, which decreased to about 215 BTC by the end of August—a reduction of approximately 79%. Based on the price disclosed most recently, the remaining holdings are valued at approximately $16.7 million.
For the week ending August 30, the company sold approximately 65 BTC, cashing out around $5.1 million. The company stated that these funds will be used for engineering, equipment procurement, and data center-related expenses. According to BitcoinTreasuries.NET, a public corporate Bitcoin holdings database, Hyperscale currently ranks 84th among publicly traded companies by Bitcoin holdings.
- As of the end of July, the holding was approximately 1,006 BTC.
- As of the end of August, the holding was approximately 215 BTC.
- Approximately 65 BTC were sold in the past week, yielding around $5.1 million.
Several prerequisites still remain for the mine renovation.
The company stated that the Michigan facility could theoretically support up to 340 MW of power capacity in the future. If the current 52 MW under the agreement is fully deployed, it would represent approximately 20% of that target capacity, leaving the remaining capacity available for other customers.
However, the 340 MW remains part of a development plan, and its realization depends on factors such as financing, engineering progress, power supply, approvals, and customer demand. The company has not yet disclosed the specific revenue amount that can be recognized under the initial 10-year contract.
Miner Sales and Business Focus Adjustment
Hyperscale also stated that the Bitcoin mining equipment removed after the shutdown will be sold externally, and the company expects this asset disposal to generate additional revenue. However, the number of units, models, book values, and expected sale proceeds have not been disclosed, and the final outcome remains subject to actual transaction results.
The company's stock, GPUS, began trading on an adjusted basis following a 1-for-5 reverse stock split on August 25. As part of the company’s long-term strategy, Hyperscale expects to spin off Ault Capital Group in 2027, after which its business focus will be more concentrated on data center operations and digital asset holdings.
Additional information: This shift is not an isolated case. As demand for high-performance computing rises, an increasing number of Bitcoin mining companies are attempting to leverage their existing power connections and data center infrastructure to transition into AI computing services.