Hyperscale Data Ends Bitcoin (BTC) Mining in Michigan for $1.2B AI Contract

Hyperscale Powers Down Michigan Miners

Hyperscale Data (NYSE American: GPUS) has switched off every Bitcoin (BTC) miner at its Michigan facility, completing the first operational step in converting the site from a crypto mining campus into an AI data center. The shutdown took effect on September 1, one day after an inspection by the unnamed California-based neocloud customer that is preparing to occupy the property, according to the company's investor-relations disclosure. Hyperscale now intends to sell the mining servers removed from the site.

The customer has contracted for 20 megawatts of critical AI computing capacity under a 10-year master services agreement that carries two optional five-year extensions. Hyperscale estimates the arrangement could generate more than $1.2 billion in revenue across the maximum 20-year term, though that figure assumes the customer exercises both extension options. A separate option for an additional 32 MW could push total potential revenue above $3 billion if the client takes that capacity within two years and retains it through both extensions. The company has not disclosed the revenue contracted under the initial 10-year term alone, and it cautions that the broader buildout remains subject to financing, engineering work, power availability, approvals and commercial demand. The Michigan property is expected to eventually support roughly 340 MW, meaning a full 52 MW deployment under the current agreement would consume about 20% of that target. The move reflects a wider industry shift in which Bitcoin miners, whose proof-of-work operations already share power connections, cooling and data center buildings with AI workloads, are repurposing infrastructure for high-performance computing — though conversion does not automatically make a mine suitable for AI tenants. Hyperscale's longer-term plan calls for separating Ault Capital Group through a divestiture expected in 2027, after which it would focus on data centers and digital asset holdings.

Bitcoin Treasury Down 79%

The pivot has been financed in large part by liquidating the company's strategic Bitcoin reserve reserves. As of July 30, Hyperscale held about 1,006 BTC; by the end of August the treasury stood at roughly 215 BTC — a decline of approximately 79%, or about 791 coins disposed of within a single month. During the week ending August 30 alone, the company sold about 65 BTC for $5.1 million, directing the proceeds toward the Michigan development. The remaining stash was worth approximately $16.7 million at the time of the latest treasury update, and BitcoinTreasuries.NET now ranks Hyperscale 84th among the public companies it tracks — a steep fall for a firm that once sat comfortably among mid-tier corporate crypto whales by holdings.

The market's verdict on the transition was harsh. GPUS shares closed at $0.1984 on September 2, down about 17% after touching an intraday low of $0.1932, on volume exceeding 117 million shares — a split-adjusted record low for the stock. The decline came shortly after Hyperscale completed a one-for-five reverse stock split, with split-adjusted trading beginning on August 25, as confirmed in the SEC filing. A reverse split reduces shares outstanding while proportionally lifting the per-share price; it does not change total market value. CEO William Horne has said he expects shareholders to benefit as the conversion advances and the valuation converges with data center peers, though the company has yet to disclose the models, book value or expected proceeds from the mining equipment it plans to sell. For context on the asset itself, see our Bitcoin (BTC) primer and the broader Bitcoin hub. Readers tracking the market in real time can follow live spot and futures prices on Bitget.

$76,400 Support Decides Next Move

COINOTAG's proprietary 42-indicator composite S/R scoring engine shows Bitcoin trading right at a decisive band, with spot near $77,747 at the time of writing. The $77,693 resistance is rated 89/100, driven by the confluence of R2, a low-volume node, the 0.114 Fibonacci retracement and the Ichimoku Tenkan; first support at $76,411 scores 79/100 from S1, the 0.214 Fibonacci level and the swing low. With RSI at 64.89, a bearish MACD signal and a sideways trend, derivatives positioning adds nuance: funding of 0.0058%, $15.65 billion in open interest and a 1.26 long/short account ratio point to mild long-side crowding, while the Fear & Greed Index at 65 (Greed) confirms elevated appetite. A decisive close above $77,693 would open the $81,479 resistance (76/100, Donchian Upper); losing $76,411 invalidates the constructive setup and exposes the $73,909 shelf. Corporate treasury sales like Hyperscale's add a modest supply drip, though whales bought the dip elsewhere, and analysts note the AI pivot is reshaping miner economics in ways J.P. Morgan's AI diversifiers analysis says Bitcoin alone does not capture.