Hyperscale Data shuts down Michigan Bitcoin mining for AI data center deal worth up to $1.2 billion

Sep 3, 2026

Hyperscale Data shut down its Bitcoin mining operations in Dowagiac, Michigan on September 1, 2026, to transition the facility into an AI data center. Under a 10-year master services agreement with an unnamed California neocloud provider, the initial 20-megawatt deal could generate $1.2 billion, or up to $3 billion with expansions. To fund this transition, the company liquidated 79% of its Bitcoin treasury, raising $53 million. Despite the massive contract, Hyperscale Data's stock plunged 17% to a split-adjusted record low of $0.1984.

Bitcoin mining operations shutdown

▪Hyperscale Data continues to operate approximately 10 megawatts of Bitcoin mining infrastructure at a facility in Montana.
▪Hyperscale Data shut down all Bitcoin mining operations at its Dowagiac, Michigan data center on September 1, 2026.
▪Hyperscale Data plans to sell the Bitcoin mining servers removed from its Michigan facility and expects to record gains from those sales.

AI data center contract

▪The agreement includes an option for the customer to add 32 megawatts of capacity, which could increase total contract revenue above $3 billion.
▪The master services agreement covers an initial 20 megawatts of capacity and could generate over $1.2 billion over 20 years if the customer exercises two five-year extensions.
▪Hyperscale Data signed a 10-year master services agreement with an unnamed California-based neocloud provider to convert its Michigan facility into an AI data center.

Bitcoin treasury liquidation

▪Hyperscale Data's Bitcoin holdings declined 79% from approximately 1,006 BTC held on July 30, 2026, to approximately 215 BTC by late August 2026.
▪Hyperscale Data sold approximately 65 BTC for $5.1 million during the week ending August 30, 2026, leaving its treasury with approximately 215 BTC valued near $16.7 million.
▪Hyperscale Data liquidated 830 BTC over a five-week period, generating approximately $53 million in proceeds to finance the Michigan facility conversion.

Stock price decline

▪Hyperscale Data's stock declined more than 76% throughout 2026 prior to the record low on September 2, 2026.
▪The decline in Hyperscale Data's stock price followed the commencement of split-adjusted trading on August 25, 2026, after a one-for-five reverse stock split.
▪Hyperscale Data shares (GPUS) fell approximately 17% on September 2, 2026, closing at a split-adjusted record low of $0.1984 on the NYSE American.

Michigan facility power capacity

▪The Dowagiac, Michigan campus spans 617,000 square feet across 34.5 acres and has a targeted potential power capacity of approximately 340 megawatts.
▪The initial 20 megawatt allocation and the optional 32 megawatt expansion would utilize approximately 20% of the Michigan facility's targeted 340 megawatt capacity.