Key Points

Hyperscale Data shut down all Bitcoin mining at its Michigan facility on Sept. 1 to make way for an AI data center customer.

A California-based neocloud provider has contracted 20 MW under a 10-year deal worth over $1.2 billion, with options potentially pushing total revenue above $3 billion.

GPUS stock fell around 17% to close at $0.1984, a split-adjusted all-time low.

The company has sold 830 BTC over the past five weeks, raising roughly $53 million to fund the Michigan transition.

Bitcoin holdings have dropped 79% since late July and now stand at around 215 BTC worth approximately $16.7 million.

Record-Low Close After Mining Shutdown

Hyperscale Data (GPUS) closed at $0.1984 on Wednesday, down about 17% after touching an intraday low of $0.1932. That closing price marks a split-adjusted record low for the NYSE American-listed stock.

The decline followed the company's confirmation that it switched off all Bitcoin miners at its Michigan facility on Sept. 1. The shutdown came after a site inspection by an unnamed California-based neocloud provider, which has now signed a master services agreement with Hyperscale.

The move reflects a broader trend among Bitcoin miners of repurposing energy-ready infrastructure for AI and high-performance computing, as data center demand for power has grown. Companies such as TeraWulf, Core Scientific, and Hut 8 have struck similar arrangements to lease capacity to AI and cloud computing customers, and neocloud providers lease GPU-equipped capacity to AI developers.

The agreement covers 20 MW of computing capacity under a 10-year contract, with two optional five-year extensions. Hyperscale estimates the deal could generate more than $1.2 billion over its full 20-year potential term.

A 32 MW expansion option is also included. If exercised, it could push total potential revenue above $3 billion. For context, the company is targeting 340 MW of total power capacity at the Michigan site, meaning even the fully contracted and optional capacity would use roughly 20% of that.

Hyperscale said it plans to sell the mining equipment previously used at the Michigan site.

Funding the Transition With Bitcoin Sales

The company has leaned heavily on its Bitcoin treasury to fund the Michigan buildout. Over the past five weeks, it has sold 830 BTC for roughly $53 million.

In the week ending Aug. 30 alone, Hyperscale sold about 65 BTC for $5.1 million. The company said the proceeds go toward additional capital for the Michigan development.

Bitcoin holdings now stand at around 215 BTC, worth approximately $16.7 million according to BitcoinTreasuries.NET. That is down 79% from the roughly 1,006 BTC the company held on July 30, ranking it 84th among publicly tracked companies on the platform.

The stock has declined more than 76% so far in 2026. The slide came shortly after Hyperscale completed a one-for-five reverse stock split, with trading beginning on a split-adjusted basis on Aug. 25. Reverse splits are often used by small-cap issuers to regain or maintain exchange listing price requirements.

Montana Operations Continue

Despite the Michigan wind-down, Hyperscale has not exited Bitcoin mining entirely. The company still operates around 10 MW of mining capacity at a facility in Montana.

In June, Hyperscale said it was exploring a 125 MW expansion at that Montana site.

Hyperscale cautioned that its Michigan expansion plans remain preliminary. The $1.2 billion revenue estimate requires the customer to exercise both extension options, and the $3 billion figure also depends on the customer taking additional capacity.

The company's Bitcoin holdings as of this week stand at 215 BTC worth approximately $16.7 million, per BitcoinTreasuries.NET.

This article first appeared on CoinCentral.