Hyperscale Data shuts down Michigan bitcoin mining to chase $1.2B AI deal

Hyperscale Data, the company trading under the ticker GPUS on NYSE American, pulled the plug on bitcoin mining at its Michigan data center on September 1. The reason: it found something more profitable to do with the electricity. Through its subsidiary Alliance Cloud Services, Hyperscale signed a Master Services Agreement to convert its Dowagiac, Michigan facility into an AI data center. The initial deal is valued at over $1.2 billion across a ten-year term, with two potential five-year extensions baked in. From hash rates to inference rates The pivot starts with an initial allocation of 20 MW of AI compute capacity. A second tranche of 10 MW is slated for deployment within 90 days of contract signing, followed by another 10 MW ninety days after that. The MSA includes an option for an additional 32 MW of load, which could push the total contract value beyond $3 billion. The Dowagiac campus spans 617,000 square feet across 34.5 acres, with a total potential power capacity of roughly 340 MW. The current AI contract taps into only about 20% of what the site can ultimately deliver. Hyperscale had been mining bitcoin at the Michigan site since at least March 2021. Why the math favors AI...