Hyperscale Data ends Michigan BTC mining as holdings fall 79%

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 unnamed California-based neocloud provider. Hyperscale said it intends to sell the associated mining equipment. 

Hyperscale said the customer has contracted for 20 megawatts (MW) of AI computing capacity under a 10-year master services agreement with two optional five-year extensions. The company estimated that the agreement would 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 also funding through sales from its Bitcoin treasury. 

Hyperscale also 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.