Key Highlights
- Hyperscale Data terminated all cryptocurrency mining operations at its Michigan location on September 1 to accommodate an AI infrastructure client.
- The company secured a 10-year agreement with a neocloud provider based in California for 20 MW of capacity, valued at more than $1.2 billion with potential expansion to exceed $3 billion.
- Shares of GPUS plummeted approximately 17% to finish at $0.1984, marking a new split-adjusted record low.
- Over the last five weeks, Hyperscale liquidated 830 BTC, generating around $53 million to finance the Michigan facility transformation.
- The firm’s Bitcoin reserves have plunged 79% since late 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% and hitting an intraday bottom of $0.1932. This closing figure establishes a new all-time low on a split-adjusted basis for the NYSE American-traded equity.
The sharp decline followed the company’s announcement that it had deactivated all Bitcoin mining hardware at its Michigan data center on September 1. This operational shift occurred after a facility evaluation conducted by an undisclosed California-based neocloud services provider, which subsequently entered into a master services agreement with Hyperscale.
The arrangement encompasses 20 MW of computational infrastructure under a decade-long commitment, featuring two additional five-year renewal options. According to Hyperscale’s projections, the partnership could produce revenue exceeding $1.2 billion if both extension periods are activated, spanning a total of 20 years.
Additionally, the contract includes provisions for a 32 MW capacity expansion. Should this option be utilized, combined potential revenues could surpass $3 billion. To provide perspective, Hyperscale is targeting 340 MW of aggregate power capacity at the Michigan location, indicating that even maximum contracted and optional deployment would consume approximately 20% of available resources.
The company indicated its intention to divest the Bitcoin mining hardware that was previously deployed at the Michigan facility.
Bitcoin Treasury Liquidation Finances Infrastructure Overhaul
Hyperscale has substantially relied on its cryptocurrency reserves to capitalize the Michigan facility transformation. Throughout the preceding five-week period, the firm disposed of 830 BTC, realizing approximately $53 million in proceeds.
During the week concluding August 30, Hyperscale liquidated approximately 65 BTC for $5.1 million. Management stated these funds are being allocated toward supplementary capital requirements for the Michigan project development.
Current Bitcoin holdings total around 215 BTC, representing approximately $16.7 million in value based on BitcoinTreasuries.NET data. This reflects a 79% reduction from the roughly 1,006 BTC position maintained on July 30, placing the company at 84th position among publicly monitored corporate Bitcoin holders on the tracking platform.
The stock has experienced a decline exceeding 76% during 2026 year-to-date. This downturn occurred following Hyperscale’s implementation of a one-for-five reverse stock split, with split-adjusted trading commencing on August 25.
Montana Mining Operations Remain Active
While discontinuing Michigan cryptocurrency operations, Hyperscale has maintained its presence in Bitcoin mining. The organization continues to operate approximately 10 MW of mining infrastructure at a Montana-based facility.
In June, the company disclosed it was evaluating a 125 MW expansion opportunity at the Montana location.
Hyperscale emphasized that Michigan expansion projections remain subject to various contingencies. The $1.2 billion revenue projection presumes the client exercises both contract extension options, while the $3 billion estimate additionally depends on the customer’s commitment to expanded capacity.
According to BitcoinTreasuries.NET, the company’s current digital asset position consists of 215 BTC with an approximate market value of $16.7 million.
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