Key Highlights
- Hyperscale Data terminated all cryptocurrency mining operations at its Michigan location on September 1 to accommodate a new AI data center client.
- The company secured a 10-year agreement with a neocloud provider based in California for 20 MW capacity, potentially generating over $1.2 billion in revenue with possible extensions exceeding $3 billion.
- Shares of GPUS tumbled approximately 17% to settle at $0.1984, marking a new split-adjusted all-time low.
- To finance the Michigan facility transformation, Hyperscale liquidated 830 BTC over a five-week period, generating around $53 million.
- The firm’s Bitcoin reserves have plummeted 79% since the end of July, currently holding roughly 215 BTC valued at about $16.7 million.
Shares of Hyperscale Data (GPUS) concluded Wednesday’s trading session at $0.1984, representing a decline of roughly 17% with an intraday bottom of $0.1932. This closing figure establishes a new split-adjusted all-time low for the NYSE American-listed equity.
The steep decline followed the company’s announcement that it deactivated all Bitcoin mining hardware at its Michigan installation on September 1. This operational cessation occurred after a facility assessment conducted by an undisclosed California-based neocloud services provider, which subsequently executed a master services agreement with Hyperscale.
The arrangement encompasses 20 MW of computational infrastructure under a decade-long commitment, including two additional five-year extension clauses. Management projects the agreement could yield in excess of $1.2 billion across the complete 20-year timeline if all options are utilized.
Additionally, there exists a 32 MW expansion provision. Should the client activate this option, combined potential revenue could surpass $3 billion. To provide perspective, Hyperscale aims to achieve 340 MW of aggregate power capacity at the Michigan location, indicating that the fully contracted and optional capacity would consume approximately 20% of available resources.
The company announced intentions to divest the mining hardware previously deployed at the Michigan facility.
Bitcoin Treasury Liquidation Finances Infrastructure Conversion
Hyperscale has relied substantially on its Bitcoin reserves to finance the Michigan site transformation. During the preceding five-week period, the firm liquidated 830 BTC, raising approximately $53 million.
During the week concluding August 30, Hyperscale disposed of roughly 65 BTC for $5.1 million. Management indicated that sale proceeds are directed toward supplementary capital requirements for Michigan development activities.
Current Bitcoin holdings total approximately 215 BTC, valued at roughly $16.7 million based on BitcoinTreasuries.NET data. This represents a 79% reduction from the approximately 1,006 BTC maintained by the company on July 30, positioning it at 84th place among publicly tracked corporations on the platform.
Year-to-date in 2026, the stock has depreciated more than 76%. This downturn occurred following Hyperscale’s execution of a one-for-five reverse stock split, with split-adjusted trading commencing on August 25.
Montana Mining Facility Remains Operational
Notwithstanding the Michigan shutdown, Hyperscale maintains its presence in cryptocurrency mining. The company continues operating approximately 10 MW of mining infrastructure at a Montana-based facility.
In June, management disclosed it was evaluating a 125 MW expansion initiative at the Montana location.
Hyperscale issued cautionary statements regarding the preliminary nature of Michigan expansion projections. The $1.2 billion revenue projection assumes the client exercises both extension provisions, while the $3 billion estimate additionally requires the customer to activate supplementary capacity options.
As of this week, the company’s Bitcoin treasury comprises 215 BTC valued at approximately $16.7 million, according to BitcoinTreasuries.NET data.
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