Hyperscale Data has permanently ended Bitcoin mining operations at its Michigan facility effective September 1, 2026, to prepare the campus for artificial intelligence computing infrastructure under a master services agreement with an unnamed California-based neocloud provider. All miners at the site were switched off following the customer's inspection, and the company plans to sell the associated mining equipment.

The move forms a core part of the company's broader conversion of the Michigan site from cryptocurrency mining to AI-focused data center services. Hyperscale Data is funding elements of the transition in part through sales of Bitcoin from its treasury.

Details of the AI Master Services Agreement

Under the agreement, the customer has contracted for an initial 20 megawatts of AI computing capacity. The contract carries a 10-year term with two optional five-year extensions, creating a potential maximum term of 20 years. Hyperscale Data estimates the arrangement could generate more than $1.2 billion in revenue if the customer exercises both extension options.

An additional option allows the customer to take another 32 megawatts of capacity. If exercised within the first two years of the initial term and maintained through the extensions, the company projects total contract revenue could exceed $3 billion. Even under that expanded scenario, the deployment would account for no more than approximately 15 to 20 percent of the Michigan facility's anticipated total power capacity of roughly 340 megawatts, leaving substantial room for other customers and further expansion.

Hyperscale Data has cautioned that its expansion plans remain preliminary and depend on financing, regulatory approvals, engineering progress, power availability, and other risks. The revenue figures assume the customer takes the available options; realized results may differ.

Bitcoin Treasury Drawdown Supports the Pivot

The company has substantially reduced its Bitcoin holdings to support capital needs for the Michigan development. Holdings stood at approximately 1,006 Bitcoin as of late July. By the end of August they had fallen to about 215 Bitcoin, valued at roughly $16.7 million, a decline of approximately 79 percent.

During the week ended August 30, Hyperscale Data sold about 65 Bitcoin for approximately $5.1 million, directing the proceeds toward additional capital for the project. Earlier transactions included sales and arrangements involving a Bitcoin-backed credit facility. The company has indicated it expects to realize further gains from the eventual sale of the decommissioned mining hardware.

Share Performance After Reverse Split

Hyperscale Data shares closed at $0.1984 on Wednesday, down about 17 percent, after trading as low as $0.1932 during the session. The close represented a split-adjusted all-time low for the NYSE American-listed stock. Trading volume was elevated.

The decline followed completion of a one-for-five reverse stock split, with split-adjusted trading beginning on August 25. Company leadership has noted that the market capitalization currently trades at a significant discount relative to other data center operators and has expressed the view that progress on the AI buildout could narrow that gap over time.

Broader Corporate Context and Next Steps

The Michigan transition sits within a larger corporate evolution. Hyperscale Data anticipates divesting its wholly owned subsidiary Ault Capital Group in 2027, after which the parent would concentrate on data center operations and digital asset holdings. Until then, the subsidiary continues activities across financial services, industrial services, and related areas.

Mining has ceased specifically at the Michigan site. The company has referenced continued Bitcoin-related activity or exploration at other locations in prior updates. Near-term milestones include completing preparations for the initial 20-megawatt deployment, executing the equipment sales, advancing construction and financing, and providing further updates on capacity rollout and contract performance.

The shift replaces a mining-driven revenue stream at the facility with contracted AI compute services of potentially multi-decade duration, while retaining optionality for significant additional scale at the same campus.