The company has shut down its Michigan mining operation and plans to sell the equipment as it redirects resources and Bitcoin-sale proceeds toward an AI data center project.

Hyperscale Data has stopped all Bitcoin mining at its Michigan facility as it prepares the site for an artificial intelligence infrastructure customer, marking another step in the company’s shift from crypto mining to high-performance computing.

Earlier coverage: Webull Expands Crypto Trading to Canada Through Coinbase Partnership

The NYSE American-listed company said all Bitcoin miners at the facility were switched off on September 1 following an inspection by an unidentified California-based neocloud provider. Hyperscale plans to sell the mining servers associated with the operation.

The shutdown will allow the company to direct the site’s power, infrastructure, personnel and capital toward the customer’s AI computing requirements, according to a September 2 company announcement.

AI agreement begins with 20 MW

The customer has contracted for 20 megawatts of computing capacity under a master services agreement with an initial term of 10 years. The agreement includes two optional five-year extensions that the customer may exercise.

Hyperscale estimates that the contract could generate more than $1.2 billion in revenue if both extensions are used, bringing the total term to 20 years.

The customer also has an option to secure another 32 MW of critical AI computing capacity. If that option is exercised within the first two years and remains in place through both five-year extensions, Hyperscale projects that total contract revenue could exceed $3 billion.

Those figures are conditional rather than guaranteed. The $1.2 billion estimate depends on both extensions, while the larger projection also requires the customer to take the additional 32 MW.

Hyperscale expects the Michigan site eventually to support approximately 340 MW. Even if the customer uses the full 52 MW covered by the initial agreement and expansion option, that would represent no more than about 20% of the site’s anticipated capacity.

The company cautioned that its broader development plans remain preliminary. Additional capacity will depend on financing, approvals, economic viability and the successful development and availability of the planned power supply.

Bitcoin reserves fall sharply

Hyperscale has been using its Bitcoin treasury to help finance the Michigan development.

On September 1, the company reported selling approximately 65 BTC for about $5.1 million during the week ended August 30. It said the proceeds would provide additional capital for the data center project.

Following the sale, Hyperscale and its subsidiaries held 214.9701 BTC, valued at approximately $16.7 million using Bitcoin’s August 30 closing price of $77,668. Company treasury update

That represents a decline of roughly 79% from the approximately 1,006 BTC the company reported holding on July 30. At that time, Hyperscale had also disclosed the sale of around 100 BTC and was arranging a Bitcoin-backed credit facility to support the Michigan campus.

BitcoinTreasuries.NET listed Hyperscale as holding 215 BTC as of September 2, worth about $16.7 million and ranking it 84th among tracked public companies. BitcoinTreasuries.NET

GPUS shares reach new low

Hyperscale Data shares closed at $0.1984 on September 2, down 17.09% for the session. The stock touched an intraday low of $0.1932, marking a split-adjusted record low.

The decline followed a one-for-five reverse stock split that took effect after the market closed on August 24. GPUS shares began trading on a split-adjusted basis on August 25, according to the company’s SEC filing.

The split converted every five outstanding Class A shares into one share and reduced the number outstanding from approximately 679.9 million to about 136 million. It did not change the company’s authorized share count or par value.