Bitcoin mining operations at Hyperscale Data’s Michigan facility officially concluded on Tuesday to clear the way for an artificial intelligence (AI) customer. The company secured an initial 10-year lease agreement for 20 megawatts of power capacity with an unnamed California-based cloud service provider.
The infrastructure lease is valued at over $1.2 billion if the customer exercises both five-year renewal options. The cloud customer also holds the right to add 32 megawatts of power capacity within the first two years of operation. Exercising the power expansion options alongside both contract extensions projects Hyperscale’s total revenue to surpass $3 billion.
Selling Crypto Assets
Hyperscale CEO William Horne emphasized that immediately shutting down Bitcoin mining operations allows the internal team to focus power allocation, infrastructure, and facility resources on preparing the site for the AI customer. The decommissioned Bitcoin mining servers will be sold, with Hyperscale targeting financial gains from the sale of the hardware.
Hyperscale had reportedly sold 79% of its Bitcoin treasury before publicly announcing the operational shutdown. Offloading a substantial portion of its digital assets onto the open market weighed on market sentiment, sending the company’s stock tumbling 17%.
IREN’s Footprint in the Industry
The strategic shift from mining operations to AI infrastructure mirrors a broader industry trend embraced by major rivals like IREN. Second-quarter 2026 performance results showed that revenue from IREN’s AI cloud division surpassed its total Bitcoin mining revenue for the first time.
Repurposing facility hardware required IREN to absorb upfront losses on retired equipment. IREN took a $450.4 million asset write-down specifically to phase out legacy Bitcoin mining rigs early. Reported by Decrypt.
Also read: What Is Bitcoin Halving?
Previously: Hyperscale Data Sells 79% of Bitcoin Reserves for AI - Ironically Stock Plunges 17%
Disclaimer: This article is for informational and educational purposes only, not financial advice. Cryptocurrency assets are highly volatile and carry significant risk. Always do your own research (DYOR) and never invest more than you can afford to lose.
