Hyperscale Data ends Michigan bitcoin mining as holdings fall 79%

Hyperscale Data has shut down all bitcoin mining at its Michigan facility as it converts the site into a full artificial-intelligence data center, Cointelegraph reports.

• The company switched off its miners on Wednesday following an inspection by an unnamed California-based neocloud provider, and it plans to sell the mining equipment
• The AI customer has contracted for 20 MW of computing capacity under a 10-year agreement with two optional five-year extensions, worth more than $1.2 billion over the full term if the customer exercises both extensions
• A further 32 MW option could push potential revenue above $3 billion, and the site is expected to support 340 MW total, though Hyperscale cautions the whole buildout remains preliminary and subject to financing and approvals
• Hyperscale shares, listed as GPUS on NYSE American, closed at $0.1984 on Wednesday, down about 17% and a split-adjusted record low, after touching an intraday low of $0.1932, shortly after the company's 1-for-5 reverse stock split took effect August 25

Hyperscale is funding the AI buildout by selling down its own bitcoin treasury. The company held about 1,006 BTC on July 30, and by the week ending August 30 it had sold roughly 65 BTC for $5.1 million, leaving it with 215 BTC worth about $16.7 million, a 79% drop in barely a month. BitcoinTreasuries.net now ranks the company 84th among the public bitcoin holders it tracks, down from a position that reflected nearly five times as many coins just weeks earlier.

Hyperscale isn't the only bitcoin miner making this trade. Intokened covered the broader shift in late July, when both Hyperscale and Quantum Solutions began selling crypto reserves to bankroll AI infrastructure instead of holding them as a balance-sheet asset. The logic is straightforward for a company this size: a 20 MW AI contract with a shot at $1.2 billion in revenue is a more certain bet than a treasury of an asset whose price the company doesn't control.

None of the AI revenue is locked in yet. The $1.2 billion figure needs the customer to exercise both extension options, and the $3 billion case needs the extra 32 MW taken too, so the number that's actually real today is smaller than either headline the company put out. One thing is certain: the bitcoin is gone. 79% of the treasury sold in a month, with the equipment that used to mine it now headed for sale as well.

This article is for informational purposes only and does not constitute investment advice.