Overview
- Hyperscale stopped all Bitcoin mining at its Dowagiac, Michigan campus on September 1 to prepare the site for an AI customer that signed a 10‑year master services agreement for an initial 20 MW.
- The MSA includes two five‑year extension options and a 32 MW expansion right, which the company says could drive headline contract revenue above $1.2 billion or exceed $3.0 billion if the customer exercises those choices.
- To finance the conversion Hyperscale sold roughly 830 BTC over about five weeks and reported remaining treasury holdings near 215 BTC, and the company plans to market the retired mining servers for sale.
- Investors reacted negatively: Hyperscale’s stock fell about 17% to a split‑adjusted record low after the shutdown announcement, and management warns that revenue and full build‑out depend on financing, engineering, power and customer decisions.
- Hyperscale will continue limited mining elsewhere, including about 10 MW in Montana, and says the long‑term plan calls for focusing the company on data centers and digital assets after a planned 2027 divestiture of its Ault Capital Group businesses.