Hyperscale Data has shut down all bitcoin mining at its Michigan data center and now says it would not consider selling the campus for less than $750 million, as the company converts a mining site into an AI facility under a contract worth up to $1.2 billion.
The miners went dark on September 1. The company, listed on NYSE American as GPUS, said the shutdown clears power, infrastructure, and staff for an unnamed California-based neocloud customer that signed a master services agreement in June for 20 megawatts of AI compute capacity, expected to be operational during the fourth quarter of 2026.
The contract runs an initial 10 years with two five-year extension options. If the customer exercises the full 20-year term, Hyperscale Data projects more than $1.2 billion in total revenue. The customer also holds an option on an additional 32 megawatts, exercisable within the first two years, which would lift the potential contract value above $3 billion.
“The immediate shutdown of the Bitcoin mining operations allows our team to focus the Facility’s power, infrastructure and resources in preparing the Facility for its usage by our Customer,” said chief executive William Horne.
Even at full expansion the current deal would use only about 20 percent of the campus’s eventual 340 megawatts of power capacity. The company says it would keep the remaining 80 percent for additional AI customers, which is the arithmetic behind the new valuation talk. A campus with a single signed tenant is worth one thing; a campus with 80 percent of its capacity still to sell is a different valuation exercise entirely.
On September 14 the company set a floor for that conversation. Management established $750 million as the minimum valuation at which a sale of the Michigan campus would merit serious consideration, and estimated the property could support a range of roughly $750 million to $1.25 billion. The company was explicit that the figure is management’s own estimate, not an independent appraisal or fairness opinion, and that a strategic review may not produce a transaction at all.
The balance sheet still carries a bitcoin position. The company holds about 215 bitcoin, worth roughly $16.7 million at current prices, and expects additional gains from selling the retired mining servers rather than scrapping them. Mining continues at the company’s Montana facility, and management left open the possibility of keeping some mining at Michigan during the transition period.
The move fits a pattern across the mining industry. IREN’s most recent quarterly results showed AI cloud revenue surpassing bitcoin mining revenue for the first time, though the transition came with a $450.4 million write-down, mostly on retired mining equipment. Core Scientific, Hut 8 and others have signed hosting deals with AI customers over the past two years, and the largest miners now routinely describe themselves in investor materials as energy and compute companies first.
VanEck’s head of digital asset research, Matthew Sigel, argued in March that miners able to repurpose sites for AI were “sitting on a gold mine” because they traded at a steep discount to traditional data center operators. Hyperscale Data’s management quoted the line in its own announcement, a sign of how central that thesis has become to the company’s equity story.
The discount is the point of the September 14 announcement. Management said the stock trades well below other data center companies relative to contracted power capacity, and that demonstrating the Michigan campus’s value is the objective of the strategic review. Whether a buyer agrees with the $750 million floor is the open question; the MSA itself, signed in June, is the only hard revenue number on the table, and everything above it rests on future tenants that do not exist yet.
Risk cuts both ways. The AI customer has not been named, deployment of the 20 megawatts is expected in the fourth quarter of 2026, and the expansion option carries no deadline pressure until the first two years of the initial term elapse. Mining revenue, meanwhile, is gone from Michigan for good, and the company gave no start date for AI operations beyond the quarterly target.
The June agreement also included a customer inspection of the facility, and it was that inspection, along with continued engineering and procurement work, that led both parties to agree on the immediate mining shutdown rather than a phased wind-down. That detail matters for how the rest of the industry reads the deal: the customer wanted the site clear, not shared.
For bitcoin miners watching the trade, the lesson of the past quarter is that conversion is expensive and lumpy but real. IREN wrote down half a billion dollars to get there. Hyperscale Data turned its miners off before it had a second customer lined up, betting the remaining 80 percent of its capacity fills at AI-era rates rather than the discounted hosting rates mining contracts paid.
The broader market context is a power squeeze. Korea’s two chipmakers, Samsung and SK Hynix, rejected a 25 trillion won electricity prepayment demand from utility KEPCO this week, citing uncertainty over whether the AI memory boom lasts five years. Data center power demand has become the binding constraint on AI buildout in most developed markets, which is precisely why sites with existing grid connections and cooling infrastructure, like the Michigan campus, command premiums.
Whether the strategic review ends in a sale, a financing, or nothing at all, the company has drawn its line in public. Below $750 million, management says, the campus is not for sale. The market will now decide whether that number reflects the value of 340 megawatts or the hope of filling them.