Hyperscale Data Declares 'AI All-in'…"Sells Bitcoin and Halts Mining"

▲ Bitcoin (BTC), Cryptocurrency Mining/ChatGPT Generated Image

Hyperscale Data (GPUS) has completely halted its Bitcoin mining operations in Michigan and is betting on a $1.2 billion transition to an artificial intelligence data center.

According to Cointelegraph on September 3 (local time), Hyperscale Data ceased operating all Bitcoin (BTC) mining machines at its Michigan data center starting September 1. After a California-based company, Neocloud, inspected the facility, both parties agreed to terminate mining to build an artificial intelligence data center. The existing mining equipment is also planned for sale.

The contract involves providing 20MW of AI computing capacity, with an initial term of 10 years. The client can extend the contract twice, each for 5 years. If the contract is maintained for a maximum of 20 years, Hyperscale Data anticipates revenue exceeding $1.2 billion. If the client exercises an additional 32MW option, the total contract revenue could exceed $3 billion.

The Michigan facility aims to have a total power capacity of 340MW in the future. Even with the full utilization of the additional 32MW option, it only represents a portion of the overall planned capacity. However, the company stated that facility expansion plans and projected revenues depend on financing, permits, client contract extensions, and additional capacity selection.

To transition to the AI business, Bitcoin holdings are also being rapidly reduced. Hyperscale Data held approximately 1,006 BTC on July 30, but sold 65 BTC for about $5.1 million during the week leading up to August 30. According to Bitcointreasuries.net, holdings have decreased to 215 BTC. This represents a reduction of approximately 79% compared to the end of July.

Despite the business transition, the stock price fell to an all-time low. Hyperscale Data closed on September 2 down about 17% at $0.1984, having dipped as low as $0.1932 during the day. The company began trading on August 25, reflecting a 5-for-1 reverse stock split. The performance of the Michigan operation, which significantly reduced Bitcoin holdings and halted mining, will now depend on the execution of AI data center contracts.

[Article Key Summary]

-Hyperscale Data completely halted Bitcoin mining at its Michigan facility starting September 1 and embarked on a transition to an artificial intelligence data center.

-The 20MW contract is expected to generate over $1.2 billion in revenue over a maximum of 20 years, and if the additional 32MW option is exercised, it could exceed $3 billion.

-Bitcoin holdings decreased by approximately 79% from 1,006 BTC at the end of July to 215 BTC, and the stock price fell to an all-time low.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*