Hyperscale Data Ditches Bitcoin Mining for AI Computing

Hyperscale Data has ended Bitcoin mining operations at its Michigan facility, switching off equipment on September 1 as it prepares to convert the site into an artificial intelligence computing center.

The company had previously announced plans to sell most of its Bitcoin treasury and use the funds for the project. It revealed that its holdings have fallen by approximately 79% from about 1,006 BTC in July to 215 BTC at the end of August.

Hyperscale has contracted with a customer for 20 megawatts of critical AI computing capacity under a master services agreement. The initial term runs for 10 years and includes two optional five year extensions controlled by the customer, which could produce more than $1.2 billion in revenue over 20 years.

The company estimates that the Michigan facility could eventually support approximately 340 MW of power, with about 20% of that capacity being consumed by the current agreement. However, this target remains a development plan and is subject to various factors including financing, engineering work, power availability, approvals, and commercial demand.