Hyperscale Data cuts BTC holdings 79% in AI pivot

Hyperscale Data has ceased all Bitcoin mining operations at its Michigan data center facility effective September 1 as part of a strategic transition into artificial intelligence computing. The company turned off its mining servers following an inspection by an unnamed California-based neocloud provider. Under a newly signed master services agreement, the customer has contracted 20 megawatts of critical capacity for an initial 10-year term, with potential 20-year revenue estimated at over $1.2 billion if expansion and extension options are fully exercised. To fund engineering, procurement, and data center conversion costs, Hyperscale Data significantly liquidated its corporate digital asset treasury. The company sold approximately 791 BTC in roughly one month, causing its Bitcoin holdings to decline 79% from 1,006 BTC in late July to approximately 215 BTC (worth around $16.7 million) by the end of August. Hyperscale also plans to sell off its decommissioned mining servers to generate additional capital as miners broadly pivot toward AI workloads.