Hyperscale halts Michigan mining for neocloud AI deal
Hyperscale Data deactivated all Bitcoin mining hardware at its Michigan data center on September 1 after a facility review and signed a 10-year master services agreement with a California neocloud provider for 20 MW of capacity. The company said the contract could generate more than $1.2 billion in revenue if extension options are used, with a 32 MW expansion option that could push combined potential above $3 billion. Hyperscale sold roughly 830 BTC for about $53 million over five weeks to finance the conversion, leaving it with about 215 BTC, and its shares fell roughly 17% to a new split-adjusted low.
Hyperscale signed a 10-year deal for 20 MW capacity.
Context
The company evaluated the Michigan facility with a neocloud client. It then converted the site from crypto mining to AI cloud capacity. Next steps include client extension decisions and any capacity expansion choices.
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