Hyperscale Data plans Patriot BTC subsidiary for Bitcoin mining business

Hyperscale Data plans to form a new subsidiary, Patriot BTC, to hold its Bitcoin mining operations as it develops its Michigan data center for AI workloads.

Under the proposal announced on September 22, the company would transfer its Montana data center, Bitcoin miners, mining equipment, and associated infrastructure to the subsidiary.

“Bitcoin mining and AI data center development have different capital requirements, operating priorities and value drivers,” explained Milton 'Todd' Ault III, Hyperscale Data’s executive chairman.

The firm is evaluating ways to position Patriot BTC within a publicly traded entity, potentially through a separation or another transaction. At the time of the announcement, the subsidiary had not been formed and no transaction structure or separation had been approved. Any transaction would require board approval and compliance with applicable legal and regulatory requirements.

The proposed restructuring follows Hyperscale Data’s shutdown of Bitcoin mining at its Dowagiac, Michigan, facility on September 1, as it prepares the site for a California-based neocloud customer.

Its Alliance Cloud Services subsidiary announced a master services agreement with the customer in June, covering an initial 20MW of critical AI compute capacity. The agreement has a ten-year term and two five-year extension options. Hyperscale Data expects revenue above $1.2bn if both term extensions are exercised.