Hyperscale Data ends Michigan Bitcoin mining for AI

Hyperscale Data ended all Bitcoin mining operations at its Michigan facility to prepare the site for an artificial intelligence data center customer. The customer contracted for 20 MW of AI computing capacity under a 10-year master services agreement. The agreement includes two optional five-year extensions. Hyperscale Data estimated that the agreement could generate more than $1.2 billion over the maximum 20-year term. An additional 32 MW option could lift potential revenue above $3 billion. The site is expected to support 340 MW. The expansion plans remain preliminary and depend on financing, approvals and other risks. The $1.2 billion estimate requires the customer to exercise both extension options. The $3 billion projection also depends on the customer taking the additional capacity. All Bitcoin miners at the facility were switched off on Wednesday after an inspection by an unnamed California-based neocloud provider. Hyperscale Data intends to sell the associated mining equipment. Yahoo Finance data showed that Hyperscale Data shares closed at $0.1984 on Wednesday. The shares fell about 17%. The stock touched an intraday low of $0.1932. The closing price was a split-adjusted record low for the NYSE American-listed stock. Hyperscale Data completed a one-for-five reverse stock split before the decline. The shares began trading on a split-adjusted basis on Aug. 25, according to a filing with the US Securities and Exchange Commission. Hyperscale Data held about 1,006 Bitcoin on July 30. The company had sold 100 BTC while arranging a BTC-backed credit facility for the Michigan campus. Hyperscale Data said on Tuesday that it sold about 65 BTC for $5.1 million during the week ending Aug. 30. The company said the proceeds would provide additional capital for the Michigan development. BitcoinTreasuries.NET lists Hyperscale Data as holding 215 BTC worth about $16.7 million. The platform ranks the company 84th among the public companies it tracks.