Bitcoin Miner Ditches Site for AI Deal That Could Top $1.2 Billion

In brief

• Hyperscale Data stopped Bitcoin mining at its Michigan data center on September 1.
• The AI agreement could generate more than $1.2 billion over 20 years if the customer exercises both extensions.
• The company plans to sell its mining servers as it prepares the facility for AI operations.

Hyperscale Data shut down Bitcoin mining operations at its Michigan data center on Tuesday to make room for an AI customer whose contract could generate more than $1.2 billion over 20 years, the company said.

In an announcement on Wednesday, Hyperscale said the previously announced deal could generate more than $1.2 billion if the customer exercises both five-year extensions to the initial 10-year term. The agreement covers 20 megawatts of capacity for an unnamed California-based provider of cloud computing services for AI.

“The immediate shutdown of the Bitcoin mining operations allows our team to focus the Facility's power, infrastructure and resources in preparing the Facility for its usage by our Customer,” CEO William Horne said in the announcement.

According to Hyperscale, the agreement gives the customer an option to add 32 megawatts within the first two years. The company said exercising that option and both five-year extensions could bring total contract revenue above $3 billion.