Hyperscale Data Halted Michigan BTC Mining as AI Customer Deal Unfolds

Hyperscale Data has halted all Bitcoin mining at its Michigan facility as part of plans to repurpose the site for an artificial intelligence (AI) data center. The shutdown follows an inspection by a California-based neocloud provider, which is tied to the AI customer's requirements. Hyperscale said it will sell the mining equipment and fund the conversion through proceeds from Bitcoin activity under its 'Bitcoin treasury.'

The company has also drawn down its Bitcoin holdings, selling 65 BTC for about $5.1 million in the week ending August 30. This brings its current holding to around 215 BTC, worth roughly $16.7 million - a decrease of approximately 79% from July.

Hyperscale's shares fell to a record low on Wednesday after completing a one-for-five reverse stock split that became effective on August 25. The company projects the AI master services agreement could generate over $1.2 billion over up to 20 years, with potential upside if additional capacity is taken.