Hyperscale Data Ditches Bitcoin Mining for AI Infrastructure
Hyperscale Data, GPUS, is shifting its focus from Bitcoin mining to AI infrastructure. The company has ceased all cryptocurrency mining operations at its Michigan location and has instead secured a contract with an undisclosed California neocloud company for 20 MW of computational infrastructure over a decade-long period.
The deal, valued at over $1.2 billion, includes two additional five-year renewal options that could bring the total potential revenue to over $3 billion. Hyperscale plans to use its digital currency reserves, which have decreased by 79% since July, to finance the transformation of its Michigan facility.
The company's stock price has declined significantly, dropping 17% to settle at $0.1984 on Wednesday, marking a new post-split record low. This comes after Hyperscale completed a one-for-five reverse consolidation in August and subsequently saw its shares decline by over 76% year-to-date.
Hyperscale still maintains its presence in Bitcoin mining through its Montana-based facility, which continues to operate approximately 10 MW of mining infrastructure. The company is evaluating a 125 MW expansion opportunity at the Montana location but has not confirmed any plans for Michigan expansion beyond the current $1.2 billion revenue stream.