Hyperscale Data shutters BTC mining in Michigan as Bitcoin reserves plummet 79%
The company's Bitcoin reserves have plummeted approximately 79% from late July levels to just 215 BTC as funds are redirected to finance its Michigan-based AI data center project.
All Bitcoin mining activities at Hyperscale Data's Michigan location have been terminated as the company transitions the facility to accommodate an artificial intelligence data center client.
The company announced Wednesday that Bitcoin mining equipment at the location was completely powered down after an inspection conducted by a California-based neocloud provider that was not publicly identified. According to Hyperscale, plans are underway to sell the mining hardware associated with the facility.
The customer has signed a contract for 20 megawatts (MW) of AI computing power through a 10-year master services agreement that includes two potential five-year extension periods. According to Hyperscale's estimates, the contract could generate revenues exceeding $1.2 billion if extended to the full 20-year maximum term. Should the customer opt for an additional 32 MW of capacity, total potential revenue could surpass $3 billion, with the facility designed to ultimately accommodate 340 MW.
This operational shutdown represents another significant milestone in Hyperscale's transformation of its Michigan location from cryptocurrency mining operations to AI infrastructure, a transition the company is partially financing through liquidation of its Bitcoin treasury holdings.
The company also issued warnings that its expansion strategy remains in early stages and faces uncertainties related to financing availability, regulatory approvals and additional risk factors. The $1.2 billion revenue estimate is contingent upon the customer exercising both available extension options, whereas the $3 billion forecast additionally requires utilization of the expanded capacity option.
Hyperscale Data stock slides to record low
Data from Yahoo Finance shows Hyperscale Data's shares ended Wednesday's trading session at $0.1984, representing a decline of approximately 17%, following an intraday minimum of $0.1932. Wednesday's closing value represents an all-time low for the NYSE American-listed equity on a split-adjusted basis.
The stock's downturn occurred in the immediate aftermath of Hyperscale implementing a one-for-five reverse stock split. According to documentation filed with the US Securities and Exchange Commission, trading on a split-adjusted basis commenced on Aug. 25.
Meanwhile, Hyperscale has substantially diminished its Bitcoin treasury position to fund the AI facility construction. As of July 30, the company's holdings stood at approximately 1,006 Bitcoin, having already sold 100 BTC while simultaneously securing a BTC-backed credit facility to support the Michigan campus development.
In a Tuesday announcement, the company disclosed the sale of approximately 65 BTC for $5.1 million throughout the week concluding Aug. 30. According to Hyperscale, the sale proceeds are earmarked to supply supplementary capital for the Michigan project's development.
Current data from BitcoinTreasuries.NET indicates Hyperscale's holdings now total 215 BTC, valued at approximately $16.7 million. The current holdings reflect a reduction of roughly 79% compared to the July figures and position the company at 84th place among publicly traded corporations monitored by the platform.