Hyperscale Data’s shares fell to a record low this week as the Nasdaq-listed company switched off all Bitcoin mining machines at its Michigan data center, ending operations there to convert the facility into artificial intelligence computing infrastructure.
GPUS traded as low as $0.22 on Tuesday morning and had fallen more than 76% since the start of 2026. The sell-off came as the company began a capital-intensive transition that replaces revenue from self-mining Bitcoin with a long-term contract to provide power and data-center capacity to an AI-focused cloud computing customer.
Hyperscale Data said all miners at the Michigan site were shut down on Sept. 1 under an agreement connected to the property’s redevelopment. The company will rebuild the facility under a master services agreement with an unnamed California-based “neocloud” provider, a term generally used for cloud operators that rent specialized computing capacity for AI workloads.
The agreement covers 20 megawatts of capacity and could generate roughly $1.2 billion in revenue across 20 years, according to Hyperscale Data’s estimates. That projection places a large value on a relatively small initial share of the site’s planned electricity supply, while requiring the company to complete a major construction and equipment program before it can deliver the contracted capacity.
AI contract replaces Michigan mining operations
The Michigan shutdown marks a sharp operational change for a company whose recent business has included Bitcoin mining. Mining machines consume substantial power continuously, while AI data centers typically require high-density computing equipment, cooling systems, networking hardware and a reliable supply of electricity that can be reserved for a specific customer.
Hyperscale Data said its Michigan project is targeting about 340 MW of total power capacity. The initial 20 MW commitment would therefore account for about 6% of that planned capacity. If the customer exercises an option to expand by a further 32 MW, the contract load would reach 52 MW, or about 15% of the 340 MW target. The company said the expansion could take estimated contract revenue above $3 billion.
Those figures illustrate why the company is willing to give up the Michigan mining fleet. A contracted data-center customer can provide more predictable payments than Bitcoin mining, whose economics move with Bitcoin’s price, mining difficulty, transaction-fee income, power costs and the efficiency of mining equipment. The trade-off is that Hyperscale Data must fund the conversion and execute on construction, power delivery and customer requirements over many years.
The company described the agreement as running for 20 years. It also said the structure includes an initial 10-year service period and two additional five-year options, which together would extend the potential relationship to two decades.
Bitcoin sales finance the data-center conversion
Hyperscale Data has turned to its Bitcoin holdings to help pay for the redevelopment. The company said it sold 830 BTC during the past five weeks, raising about $53 million for development work and equipment at the Michigan site.
The sale reduced a treasury built up over the previous year, though the company retains a smaller Bitcoin position. Bitcoin Treasuries data lists Hyperscale Data as holding 275 BTC, valued at about $21.2 million based on the figures cited in the source material.
Using Bitcoin reserves for infrastructure spending gives Hyperscale Data cash without relying entirely on new equity issuance or additional borrowing. It also reduces the company’s direct exposure to Bitcoin’s price. For shareholders, that creates a different financial profile: the company is exchanging a volatile digital-asset reserve and operating mining capacity for physical data-center assets and projected service revenue.
Hyperscale Data also recently eliminated $25 million in outside corporate debt, according to the company. Removing that obligation could give the firm more flexibility as it funds work at the 617,000-square-foot Michigan facility, although the AI conversion will remain a substantial execution project.
Mining continues in Montana
The Michigan closure does not mean Hyperscale Data has left Bitcoin mining entirely. The company said roughly 10 MW of mining capacity remains in operation at its primary site in Montana.
In June, Hyperscale Data said it was exploring a 125 MW expansion at the Montana location. That proposal would preserve the possibility of a larger mining operation while Michigan is repurposed for AI computing. The split approach gives the company exposure to both businesses, but places its most ambitious revenue projections on the AI hosting agreement.
The immediate market reaction suggests traders are focusing on the cost and uncertainty of the transition rather than the full long-term value of the Michigan contract. A $1.2 billion revenue estimate spread over 20 years depends on successful buildout, continued customer demand and the customer’s ability to use the capacity as planned. The optional expansion is not guaranteed.
Hyperscale Data’s shift also reflects the growing competition for power-ready data-center sites. Bitcoin miners already control electrical infrastructure, land and operational expertise in managing high-power computing equipment. Those assets can be attractive for AI operators seeking capacity, but converting a mining site into an AI facility requires a different standard of equipment, cooling and customer-service reliability.
For Hyperscale Data, Michigan is now being positioned as a long-duration AI infrastructure project rather than a source of daily Bitcoin production. Montana will determine whether the company can retain a meaningful mining presence while its largest redevelopment effort moves toward contracted computing services.
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