Hyperscale Data, the company trading under the ticker GPUS on NYSE American, pulled the plug on bitcoin mining at its Michigan data center on September 1. The reason: it found something more profitable to do with the electricity.
Through its subsidiary Alliance Cloud Services, Hyperscale signed a Master Services Agreement to convert its Dowagiac, Michigan facility into an AI data center. The initial deal is valued at over $1.2 billion across a ten-year term, with two potential five-year extensions baked in.
From hash rates to inference rates
The pivot starts with an initial allocation of 20 MW of AI compute capacity. A second tranche of 10 MW is slated for deployment within 90 days of contract signing, followed by another 10 MW ninety days after that.
The MSA includes an option for an additional 32 MW of load, which could push the total contract value beyond $3 billion.
The Dowagiac campus spans 617,000 square feet across 34.5 acres, with a total potential power capacity of roughly 340 MW. The current AI contract taps into only about 20% of what the site can ultimately deliver.
Hyperscale had been mining bitcoin at the Michigan site since at least March 2021.
Why the math favors AI
CEO William Horne framed the decision as a straightforward profitability call, pointing to AI colocation opportunities as a higher-margin use of the company’s power and physical infrastructure.
Discussions for this arrangement reportedly began as early as June 2026, meaning the company had been planning its exit from Michigan mining for months before flipping the switch.
The bitcoin treasury angle
Hyperscale isn’t abandoning bitcoin entirely. The company indicated it has strategically retained bitcoin in its treasury and plans to selectively sell holdings to finance future development at the Dowagiac site.
Recent sales of approximately 65 BTC netted around $5.1 million, giving a rough average sale price near $78,500 per coin. That capital is being recycled into the facility’s AI buildout, essentially converting mined bitcoin into AI infrastructure.