Hyperscale Data ends Michigan BTC mining as holdings fall 79%

Hyperscale Data, a company specializing in data centers, has recently halted its Bitcoin mining operations at its Michigan facility, resulting in a significant 79% reduction in its Bitcoin holdings. As of Tuesday, the company held approximately 215 BTC, valued at around $16.7 million. The decision to cease mining activities comes as Hyperscale prepares the site for an artificial intelligence (AI) data center customer.

The company intends to sell the mining equipment and allocate capital towards the AI infrastructure project. Hyperscale has secured a 20 MW contract for AI computing capacity under a 10-year master services agreement with two optional five-year extensions, which could generate over $1.2 billion in revenue. Should the customer exercise additional options, potential revenue could exceed $3 billion.

Hyperscale is also funding the AI buildout through sales from its Bitcoin treasury. The company cautioned that expansion plans for the Michigan facility remain preliminary and subject to various risks, including financing and approvals. Hyperscale's shares experienced a decline of approximately 17% on Wednesday, closing at $0.1984, marking a record low for the NYSE American-listed stock.