Hyperscale Shuts Michigan Bitcoin Mine for AI Deal Worth More Than $1.2 Billion
Hyperscale Data has halted Bitcoin mining at its Michigan data center to free up power and infrastructure for an artificial intelligence customer, according to a company announcement released Wednesday. The agreement covers 20 megawatts for an unnamed California-based provider of AI cloud computing services and carries an initial term of 10 years. If the customer exercises both five-year extension options, the contract could generate more than $1.2 billion over 20 years. The company said the customer also has an option to add 32 megawatts within the first two years. If that expansion is taken and both extensions are exercised, total contract revenue could exceed $3 billion. CEO William Horne said the immediate shutdown of mining operations allows the company to direct the facility’s power, infrastructure, and other resources toward preparing the site for the customer. Hyperscale plans to sell its mining servers and said it expects gains from those sales. It did not disclose when AI operations will begin, and said the shutdown applies to the Michigan site. The move comes as more miners explore AI-related conversions. Decrypt noted that VanEck’s Matthew Sigel argued in March that miners could benefit by repurposing infrastructure for AI demand, while IREN’s results last month showed both the revenue potential and the cost of that shift, including a $450.4 million asset write-down tied mostly to retired mining equipment.
