Hyperscale Data stopped all Bitcoin mining operations at its Michigan facility on Sept. 1 as it began preparing the site for an artificial intelligence computing customer.
Summary
- Hyperscale Data stopped all Bitcoin mining at its Michigan facility effective September 1, 2026, completely.
- Company plans to sell mining equipment while preparing the site for AI computing operations now.
- Bitcoin holdings fell about 79% from 1,006 BTC in July to approximately 215 BTC recently.
- Customer contracted 20 MW for ten years with two optional five year extensions available later.
- GPUS shares closed Wednesday at $0.1984, falling 17% after reaching a record intraday low earlier.
The company switched off the facility’s mining equipment after an inspection by an unnamed California based neocloud provider, according to a Sept. 2 announcement. Hyperscale intends to sell the servers previously used to mine Bitcoin.
The shutdown completes the first operational step in converting the Michigan property from a Bitcoin mine into an AI data center. Hyperscale has also sold most of its Bitcoin treasury to provide capital for the project.
Its holdings have fallen approximately 79% from about 1,006 BTC on July 30 to 215 BTC at the end of August. The remaining Bitcoin was worth approximately $16.7 million when the company published its latest treasury update.
Hyperscale Data redirects Michigan power toward AI
Hyperscale said its customer contracted for 20 megawatts of critical AI computing capacity under a master services agreement. The initial term runs for 10 years and includes two optional five year extensions controlled by the customer.
The company estimates that the contract could produce more than $1.2 billion in revenue over 20 years. However, that figure assumes the customer exercises both extension options. It is not guaranteed revenue under the initial contract term.
The customer also has an option to take another 32 MW of computing capacity. Hyperscale estimates that total revenue could exceed $3 billion if the customer exercises that option within two years and retains the capacity through both extensions.
The larger projection therefore depends on several future decisions by the customer. Hyperscale has not disclosed the contracted revenue expected from the initial 10 year term alone.
Hyperscale said the Michigan facility could eventually support approximately 340 MW of power. A full 52 MW deployment under the current agreement would consume about 20% of that expected capacity, leaving the remainder available for other customers.
The 340 MW target remains a development plan. The company cautioned that the additional capacity depends on financing, engineering work, power availability, approvals and commercial demand.
Bitcoin treasury sales help finance construction
Hyperscale has reduced its Bitcoin treasury as it redirects money toward engineering, equipment procurement and other costs at the Michigan facility.
The company reported selling approximately 65 BTC for $5.1 million during the week ending Aug. 30. It said the proceeds would provide additional capital for the data center project.
The sales left Hyperscale holding approximately 215 BTC. BitcoinTreasuries.NET ranks the company 84th among the public businesses tracked by its database.
Hyperscale held approximately 1,006 BTC in late July, meaning it disposed of about 791 BTC within roughly one month. The company has not published one consolidated breakdown showing the price and proceeds for every sale during that period.
Its decision reflects a broader shift among Bitcoin miners seeking to use existing power connections and data center infrastructure for AI computing. Recent coverage noted that miners are redirecting infrastructure toward AI as demand for high performance computing capacity grows.
Bitcoin mining and AI workloads both require access to power, cooling equipment and data center buildings. However, converting a mining site does not automatically make it suitable for AI customers, which can require different networking, backup systems and computing infrastructure.
Mining equipment will be sold after the shutdown
Hyperscale said it expects to record additional gains from selling the Bitcoin mining servers removed from the Michigan operation. It has not disclosed the number of machines, their models, book value or expected sale proceeds.
The value of mining equipment can depend on Bitcoin prices, network difficulty, energy efficiency and demand from other operators. The company’s expectation of gains remains forward looking until the equipment is sold and the final proceeds are recorded.
The shutdown applies specifically to Hyperscale’s Michigan facility. The announcement did not say that the company had ended every Bitcoin related activity across the wider corporate group.
Hyperscale also continues to hold Bitcoin through its treasury. Its longer term corporate plan calls for separating Ault Capital Group through a divestiture expected in 2027, after which Hyperscale would focus on data center operations and digital asset holdings.
The divestiture remains subject to the exchange process involving the company’s Series F preferred stock. Only investors who surrender those shares under the planned offer would receive shares in Ault Capital Group.
Hyperscale Data stock falls after reverse split
Hyperscale Data shares closed at $0.1984 on Sept. 2, falling about 17% during the session. The stock traded as low as $0.1932 and reached an intraday high of $0.3012, according to market data.
The closing price represented a split adjusted record low. Trading volume exceeded 117 million shares, considerably increasing activity around the announcement.
GPUS began trading on a split adjusted basis on Aug. 25 after Hyperscale completed a one for five reverse stock split. The company confirmed the effective date through an SEC filing.
A reverse split reduces the number of shares outstanding while proportionally increasing the price assigned to each share. It does not by itself increase the company’s total market value.
CEO William Horne said he believed shareholders would benefit as the Michigan conversion advances and Hyperscale’s market valuation moves closer to those of other data center companies. This is management’s expectation and is not assured.
The next measurable milestones will include preparing the initial 20 MW for the customer, selling the mining equipment and disclosing revenue under the initial contract term. Investors will also need updates on construction costs, financing and the timing of capacity deployment.