Hyperscale Data is preparing its Michigan datacenter for a new artificial intelligence customer by ending all Bitcoin mining.
The company will be closed on Wednesday said The unidentified Californian Neocloud provider inspected the facility and found that the Bitcoin mining equipment was all switched off. Hyperscale intends to dispose of the mining equipment.
Hyperscale announced that the AI client has purchased 20 Megawatts of computing power under a master services contract lasting 10 years with an option for two five-year extension periods. Over a maximum of 20 years, the agreement could generate over $1.2 billion. The addition of 32 MW could boost potential revenues above $3 billion. However, the site will support 340MW.
Hyperscale is converting its Michigan facility, which was previously used for Bitcoin mining, to AI infrastructure. The project will be funded by sales of Bitcoins from the company’s Bitcoin Treasury.
Hyperscale warned that the expansion plans are still preliminary, and may be subject to changes in financing and approvals. In order to reach the $1.2 billion figure, the client must exercise both options. The $3 billion project also relies on the customer taking up the extra capacity.
Hyperscale data stock falls to record low
According Yahoo Finance reported that Hyperscale Data closed its shares at $0.1984, down approximately 17% from their intraday low price of $0.1932. This was a record-low closing price for the NYSE American listed stock.
Hyperscale’s stock price dropped shortly after a five-to-one reverse stock split. On August 25, its shares started trading with a split adjusted basis. according According to an application filed with the US Securities and Exchange Commission.
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Hyperscale also sharply reduced its Bitcoin holdings while funding the AI development. The company announced its July 30th earnings. held about 1,006 Bitcoin and had sold 100 BTC When arranging the BTC-backed loan facility for Michigan’s campus.
The company was closed on Tuesday said Hyperscale sold approximately 65 BTC at a price of $5.1 million in the week ended August 30. Hyperscale announced that proceeds from the sale would be used to provide more capital for Michigan’s development.
BitcoinTreasuries.NET now lists Hyperscale reported holding 215 BTC worth approximately $16.7 million. It represents a 79% drop from July’s amount and places it at 84th place among the public companies monitored by the platform.
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Source: cointelegraph.com
