Las Vegas-based Hyperscale Data (NYSE American: GPUS) announced on June 24 that its indirect subsidiary Alliance Cloud Services entered a master services agreement (MSA) with a California-based neocloud provider to supply 20 megawatts (MW) of AI compute capacity at its Michigan data center campus. The contract is expected to generate more than $1.2 billion in revenue over its full term, accelerating the company's pivot away from Bitcoin mining.
20 MW Initial, Expandable to 84 MW
The 20 MW of critical AI compute capacity is expected to be operational in Q4 2026, with revenue potentially starting as early as late September 2025. The MSA has an initial term of 10 years with two five-year extension options; if all extensions are exercised, the deal will generate over $1.2 billion. The customer also holds an option to expand to 52 MW and a right to an additional 32 MW. If exercised within the first two years and carried through extensions, the total value could surpass $3.0 billion. The company believes the campus can ultimately support over 300 MW, with the initial 52 MW representing roughly 17% of that potential.
Mining Capacity Shrinking, Bitcoin Holdings Remain
CEO William B. Horne said the campus is evolving from a “Bitcoin mining-focused facility” into a “next-generation AI and high-performance computing campus.” Executive Chairman Milton “Todd” Ault III confirmed the company currently operates about 28 MW of Bitcoin mining capacity at the site, with more capacity to be allocated to AI/HPC as customer deployments come online. However, Hyperscale Data still holds 726.94 BTC (worth about $45.9 million as of June 21) through Sentinum and Ault Capital Group, and intends to keep adding to its treasury, viewing Bitcoin as a foundational asset.
Sector-Wide Trend: Miners Pivot to AI
Hyperscale's move mirrors broader industry shifts. IREN acquired Spain’s Nostrum Group this month for ~490 MW of grid-connected power, following a $3 billion convertible notes offering and a $9.7 billion GPU cloud deal with Microsoft. Galaxy Digital raised $1.4 billion to convert its Helios mining site in Texas into an AI data center under a 15-year lease with CoreWeave.