Hyperscale Data ends Michigan mining as BTC holdings fall
Hyperscale Data ends Michigan Bitcoin mining after switching off all miners at its facility following an inspection by a California-based neocloud provider, as it pivots the site to AI. The company's Bitcoin holdings have fallen about 79% since late July to 215 BTC, with sales helping fund the Michigan AI data center buildout.
Key Takeaways
- Hyperscale Data has ended all Bitcoin mining at its Michigan facility and intends to sell the associated mining equipment.
- An unidentified California-based neocloud customer contracted for 20 MW of AI capacity under a 10-year master services agreement that may generate more than $1.2 billion over a maximum 20-year term if extension options are exercised.
- Company Bitcoin holdings fell about 79% from roughly 1,006 BTC on July 30 to 215 BTC, worth about $16.7 million per BitcoinTreasuries.NET.
- Hyperscale Data shares closed at $0.1984 on Wednesday, down about 17%, marking a split-adjusted record low after a recent one-for-five reverse stock split.
Why did Hyperscale Data end Michigan Bitcoin mining?
According to Cointelegraph, Hyperscale Data said on Wednesday that all Bitcoin miners at its Michigan facility were switched off after an inspection by the unidentified California-based neocloud provider. The company said it intends to sell the associated mining equipment.
The shutdown is another step in converting the Michigan campus from Bitcoin mining to AI infrastructure. That shift is being funded through sales from Hyperscale's Bitcoin treasury, a move closely watched across Fintech & Crypto Alerts coverage of corporate crypto treasuries.
How large is the Michigan AI data center deal?
Hyperscale said the AI customer has contracted for 20 megawatts of computing capacity under a 10-year master services agreement with two optional five-year extensions. The agreement may generate more than $1.2 billion over the maximum 20-year term.
An additional 32 MW option could lift potential revenue above $3 billion, while the site is expected to support 340 MW. Hyperscale cautioned that expansion plans remain preliminary and subject to financing, approvals and other risks. The $1.2 billion estimate requires the customer to exercise both extension options, and the $3 billion projection also depends on taking the additional capacity.
How far have Hyperscale's Bitcoin holdings fallen?
On July 30, the company held about 1,006 Bitcoin and had sold 100 BTC while arranging a BTC-backed credit facility for the Michigan campus. On Tuesday, Hyperscale said it sold about 65 BTC for $5.1 million during the week ending Aug. 30, with proceeds earmarked for additional Michigan development capital.
BitcoinTreasuries.NET now lists Hyperscale as holding 215 BTC, worth about $16.7 million. That is a 79% decline from the July figure and ranks the firm 84th among public companies tracked by the platform.
What happened to Hyperscale Data stock?
According to Yahoo Finance data cited by Cointelegraph, Hyperscale Data shares closed at $0.1984 on Wednesday, down about 17%, after touching an intraday low of $0.1932. The close marked a split-adjusted record low for the NYSE American-listed stock.
The decline came shortly after Hyperscale completed a one-for-five reverse stock split. Its shares began trading on a split-adjusted basis on Aug. 25, according to a filing with the US Securities and Exchange Commission.