Key Highlights

Hyperscale Data ended all cryptocurrency mining operations at its Michigan site on September 1 to make room for an AI infrastructure client.

The company signed a 10-year master services agreement with a California-based neocloud provider covering 20 MW of capacity, valued at more than $1.2 billion, with potential expansion that could lift total revenue above $3 billion.

Shares of GPUS fell roughly 17% to close at $0.1984, a new split-adjusted record low.

Over the past five weeks, Hyperscale sold 830 BTC, generating about $53 million to fund the Michigan facility conversion.

The company's Bitcoin reserves have dropped 79% since late July, leaving roughly 215 BTC worth about $16.7 million.

Shares of Hyperscale Data (GPUS) finished Wednesday's session at $0.1984, down approximately 17%, after touching an intraday low of $0.1932. The close marks a new all-time low on a split-adjusted basis for the NYSE American-listed stock.

The steep decline came after the company announced it had shut down all Bitcoin mining hardware at its Michigan data center on September 1. The shift followed a facility evaluation by an undisclosed California-based neocloud services provider, which subsequently entered into a master services agreement with Hyperscale.

The move reflects a broader industry pattern: a number of Bitcoin mining companies have been repositioning sites with established power infrastructure toward AI and high-performance computing workloads, which require similar energy capacity, as demand for GPU compute from neocloud and AI firms has grown.

The deal covers 20 MW of computational infrastructure under a decade-long commitment with two additional five-year renewal options. According to Hyperscale's projections, the partnership could generate revenue exceeding $1.2 billion if both extensions are exercised, spanning a total of 20 years.

The contract also includes provisions for a 32 MW capacity expansion. If that option is used, combined potential revenues could surpass $3 billion. For context, Hyperscale is targeting 340 MW of aggregate power capacity at the Michigan site, meaning even the maximum contracted and optional deployment would consume roughly 20% of available resources.

The company said it intends to sell the Bitcoin mining hardware previously deployed at the Michigan facility.

Despite the headline contract size, the market reaction was sharply negative, underscoring that projected revenue under a long-term agreement remains contingent and does not guarantee near-term results for a company whose stock has been under sustained pressure.

Bitcoin Treasury Sales Finance the Infrastructure Overhaul

Hyperscale has relied heavily on its cryptocurrency reserves to fund the Michigan conversion. Over the preceding five weeks, the firm sold 830 BTC, realizing approximately $53 million.

In the week ending August 30, Hyperscale liquidated roughly 65 BTC for $5.1 million. Management said the proceeds are being directed toward supplementary capital requirements for the Michigan project's development.

Current Bitcoin holdings stand at about 215 BTC, worth approximately $16.7 million according to BitcoinTreasuries.NET data. That represents a 79% reduction from the roughly 1,006 BTC held on July 30, placing the company 84th among publicly tracked corporate Bitcoin holders on the platform. The drawdown leaves materially less of a crypto treasury buffer to fund future capital needs.

The stock has fallen more than 76% year-to-date in 2026. The slide followed Hyperscale's one-for-five reverse stock split, with split-adjusted trading beginning August 25. Reverse splits are often used by companies to regain or maintain exchange listing compliance on minimum share price requirements.

Montana Mining Operations Continue

Although Michigan cryptocurrency operations have ceased, Hyperscale still maintains a Bitcoin mining presence. The company continues to operate roughly 10 MW of mining infrastructure at a Montana facility.

In June, Hyperscale disclosed it was evaluating a 125 MW expansion opportunity at the Montana site.

The company stressed that Michigan expansion projections remain subject to contingencies. The $1.2 billion revenue projection assumes the client exercises both contract extension options, while the $3 billion estimate additionally depends on the customer committing to the expanded capacity. Watchers of the company will likely look ahead to whether the neocloud client exercises the capacity expansion option and how the Montana expansion evaluation proceeds.

According to BitcoinTreasuries.NET, the company's current digital asset position consists of 215 BTC with an approximate market value of $16.7 million.