Key Takeaways
- Hyperscale Data terminated all Bitcoin mining operations at its Michigan site effective September 1, clearing space for an AI data center client.
- An unnamed California neocloud provider signed a 20 MW contract spanning 10 years, valued at more than $1.2 billion, with expansion options potentially exceeding $3 billion.
- Shares of GPUS tumbled approximately 17% to settle at $0.1984, marking a new split-adjusted record low.
- The firm liquidated 830 BTC during the last five weeks, generating roughly $53 million to support the Michigan facility transformation.
- The company’s Bitcoin reserves have plummeted 79% since the end of July, currently holding about 215 BTC valued at roughly $16.7 million.
Shares of Hyperscale Data (GPUS) concluded Wednesday’s trading session at $0.1984, sliding roughly 17% and reaching an intraday bottom of $0.1932. This represents an all-time low on a split-adjusted basis for the NYSE American-traded equity.
The sell-off followed the company’s announcement that it had deactivated all Bitcoin mining hardware at its Michigan location on September 1. This operational halt came after a facility evaluation conducted by an undisclosed California-based neocloud service provider, which subsequently entered into a master services agreement with Hyperscale.
The arrangement encompasses 20 MW of computational power under a decade-long commitment, featuring two additional five-year renewal options. Management estimates the contract could yield in excess of $1.2 billion across its maximum 20-year duration.
An additional expansion clause for 32 MW exists within the agreement. Should the client activate this provision, combined potential revenues could surpass $3 billion. To put this in perspective, Hyperscale aims for 340 MW of aggregate power availability at the Michigan property, indicating that even maximum contracted and optional utilization would consume approximately 20% of total capacity.
The company disclosed intentions to divest the mining hardware that was previously deployed at the Michigan location.
Bitcoin Liquidation Finances Infrastructure Upgrade
Hyperscale has relied substantially on its Bitcoin reserves to finance the Michigan facility transformation. Across the preceding five weeks, the company liquidated 830 BTC, generating approximately $53 million in proceeds.
During the seven-day period concluding August 30, Hyperscale disposed of roughly 65 BTC for $5.1 million. Management indicated these funds are allocated toward supplementary capital requirements for the Michigan development project.
Current Bitcoin holdings total approximately 215 BTC, valued at around $16.7 million based on data from BitcoinTreasuries.NET. This represents a 79% reduction from the approximately 1,006 BTC the company maintained as of July 30, positioning it 84th among publicly monitored entities on the tracking platform.
The stock has also depreciated more than 76% year-to-date in 2026. This decline occurred following Hyperscale’s execution of a one-for-five reverse stock split, which commenced trading on an adjusted basis starting August 25.
Montana Mining Activities Persist
Notwithstanding the Michigan facility closure, Hyperscale has not completely abandoned Bitcoin mining operations. The organization continues to maintain approximately 10 MW of mining infrastructure at a Montana-based facility.
In June, the company announced it was evaluating a 125 MW expansion project at the Montana location.
Hyperscale emphasized that its Michigan expansion strategy remains in preliminary stages. The projected $1.2 billion revenue figure assumes the customer will activate both contract extension provisions, while the $3 billion estimate additionally requires the client to pursue expanded capacity options.
According to BitcoinTreasuries.NET, the company’s digital asset holdings currently stand at 215 BTC with an approximate market value of $16.7 million.
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