Hyperscale Data (NYSE American: GPUS) has shut down all bitcoin mining operations at its Michigan data center, effective September 1, to prepare the facility for a long-term AI infrastructure contract the company says could be worth over $1.2 billion.
From miners to AI servers
The shutdown follows a master services agreement with a California-based neocloud provider that calls for deploying 20 megawatts of AI compute capacity.
The deal runs for an initial 10-year term with two five-year extension options.
If the customer exercises the full 20-year term, the company projects more than $1.2 billion in total revenue.
Scale of the Michigan facility
Even at full expansion under the current deal, the deployment would occupy only about 20% of the facility’s anticipated 340 MW of eventual power capacity.
The company says it would retain roughly 80% for additional customers and future AI data center buildout.
CEO William Horne said in a statement:
“The immediate shutdown of the Bitcoin mining operations allows our team to focus the Facility’s power, infrastructure and resources in preparing the Facility for its usage by our Customer.”
Mining hardware headed for sale
Horne also noted that VanEck’s head of digital asset research had earlier called bitcoin mining companies that could repurpose existing sites for AI “sitting on a gold mine” because they traded at a steep discount to traditional data center operators.
Hyperscale Data expects to recognize additional gains from selling the bitcoin mining servers that have now been turned off.
The company currently holds approximately 215 bitcoin on its balance sheet, worth roughly $16.7 million.
