Hyperscale Data has shut down all Bitcoin mining operations at its Michigan facility as the company shifts the site toward artificial intelligence infrastructure.
The company said all Bitcoin miners at the facility were switched off after an inspection by an unidentified California-based neocloud provider. Hyperscale Data plans to sell the mining equipment as it prepares the facility for its new AI-focused operations.
Hyperscale Data said its AI customer has contracted for 20 megawatts (MW) of computing capacity under a 10-year master services agreement, with two optional five-year extensions.
The agreement could generate more than $1.2 billion over its maximum 20-year term. The company said an additional 32 MW option could increase potential revenue to more than $3 billion, while the Michigan site is ultimately expected to support up to 340 MW.
However, the company cautioned that the expansion plans remain subject to financing, regulatory approvals and other risks. The $1.2 billion projection depends on the customer exercising both extension options, while the $3 billion estimate also requires the additional capacity option to be taken up.
The shutdown represents another step in Hyperscale Data’s transition from cryptocurrency mining to AI infrastructure.
The company has been using proceeds from its Bitcoin treasury to help finance the Michigan data center development. Its Bitcoin holdings have declined sharply in recent weeks.
On July 30, Hyperscale Data held approximately 1,006 BTC and had already sold 100 BTC while arranging a Bitcoin-backed credit facility for the Michigan project.
The company later disclosed that it sold approximately 65 BTC for $5.1 million during the week ending August 30. The proceeds were allocated toward additional capital for the Michigan development.
Hyperscale Data’s Bitcoin holdings now stand at approximately 215 BTC, valued at around $16.7 million. This represents a decline of roughly 79% from the holdings reported in late July.
Hyperscale Data shares also came under pressure following the announcement.
According to Yahoo Finance data, the company’s stock closed at $0.1984 on Wednesday, down approximately 17%, after reaching an intraday low of $0.1932. The closing price marked a split-adjusted record low for the NYSE American-listed company.
The decline followed a one-for-five reverse stock split completed by Hyperscale Data. Its shares began trading on a split-adjusted basis on August 25.
The end of Bitcoin mining highlights Hyperscale Data’s broader strategy of moving away from cryptocurrency mining and toward AI-focused data center operations.
The company expects its Michigan facility to become a major AI computing site, although the scale and timing of the planned expansion will depend on customer commitments, financing and regulatory approvals.
With its Bitcoin holdings reduced from more than 1,000 BTC to about 215 BTC in just over a month, Hyperscale Data is increasingly relying on its cryptocurrency treasury to support its transition into the growing AI infrastructure market.