Hyperscale Data has shut down Bitcoin mining at its Michigan facility as it starts converting the site for an artificial intelligence computing customer. The company said mining at the location ended on Sept. 1, marking what it described as the first operational step in turning the property from a crypto mine into an AI data center.

To support that shift, Hyperscale has sharply reduced its Bitcoin treasury. Its holdings fell from about 1,006 BTC in late July to 215 BTC at the end of August, a drop of roughly 79%. At the time of the company’s latest treasury update, the remaining Bitcoin was valued at about $16.7 million.

Treasury sales fund the transition

Hyperscale said it sold most of its Bitcoin reserves to free up capital for the Michigan project, including spending tied to engineering, equipment procurement, and other development costs. During the week ended Aug. 30 alone, the company sold around 65 BTC for about $5.1 million, leaving it with roughly 215 BTC.

The company has linked the treasury reduction directly to the site conversion. It also said mining equipment from the Michigan operation will be sold following the shutdown, although it has not yet disclosed the amount of any expected gains from those asset sales.

According to BitcoinTreasuries.NET, Hyperscale ranks 84th among the public companies tracked in that database. The Michigan shutdown applies to that specific facility, and the company did not say that all Bitcoin-related activity across the broader group had ended.

AI contract sets out long-term revenue potential

The company said its customer has contracted for 20 megawatts of critical AI computing capacity under a master services agreement. The initial term is 10 years, with two additional five-year extensions that are controlled by the customer.

Hyperscale estimates the agreement could generate more than $1.2 billion in revenue over 20 years, but that figure depends on both extension options being exercised. The deal also includes an option for the customer to take an additional 32 MW. If that option is exercised within two years and maintained through both extension periods, Hyperscale said total revenue could exceed $3 billion.

Those figures remain company estimates tied to the full duration and expansion scenarios set out in the agreement. The larger revenue outcomes are therefore contingent on decisions the customer has not yet been confirmed to make.

Site capacity leaves room for expansion

Hyperscale said the Michigan facility could eventually support about 340 MW of power. Under the current agreement, a full 52 MW deployment would use roughly 20% of that planned capacity, leaving additional room for future customers at the site.

The 340 MW figure, however, is still part of a broader development plan rather than an installed operating capacity. The company said reaching that level depends on financing, engineering work, power availability, regulatory or other approvals, and customer demand.

Broader strategy remains in progress

The move fits into a longer-term plan under which Hyperscale expects to separate Ault Capital Group through a divestiture in 2027. After that step, the company has said it would focus on data center operations and digital asset holdings.

That divestiture is not final. Hyperscale said it remains subject to an exchange process involving its Series F preferred stock, making the Michigan conversion the clearest confirmed near-term step in the company’s pivot from Bitcoin mining toward AI infrastructure.

Source: crypto.news