Another Bitcoin Miner Is Pivoting Fully To AI: Hyperscale Data Sees $2.5 Billion Opportunity In Michigan Campus

Hyperscale Data's Alliance Cloud Services nears a one billion dollar AI deal that would end Bitcoin mining at its Michigan campus.

• Hyperscale Data said on Monday that its subsidiary, Alliance Cloud Services, is in advanced talks expected to result in a master services agreement.
• This will be to provide colocation and data center services for AI compute at its Michigan campus.
• The company, which operated a major Bitcoin mining operation, said it will likely wind down all Bitcoin mining at the Michigan campus over several months to redirect power capacity toward the higher-margin AI services.

Hyperscale Data's (GPUS) subsidiary Alliance Cloud Services is in advanced talks for an artificial intelligence (AI) services deal that would likely bring an end to Bitcoin (BTC) mining at the company's Michigan campus.

The company said on Monday that negotiations with a prospective customer have advanced toward a master services agreement for Alliance Cloud Services (ACS), expected within weeks. This would provide colocation and related data center services for AI compute at its Michigan campus. The initial agreement would cover about 20 megawatt (MW) of capacity and is expected to be worth in excess of $1 billion over a 20-year term, the company said.

GPUS stock was rallying by over 24% during pre-market trading hours on Monday. On Stocktwits, the retail sentiment around GPUS remained in the ‘bearish’ zone, while chatter around it shifted to ‘normal’ from ‘high’ over the past day.

Hyperscale Data Could Exit Bitcoin Mining In Michigan

As those services come online, Hyperscale Data said it will likely cease all Bitcoin mining at the Michigan campus over several months to focus its power capacity on the higher-margin AI work. If the deal is executed, the first 10 MW would be operational within 90 days, followed by another 10 MW 90 days later. 

CEO Will Horne said the company expects "significant updates for stockholders in the coming days and weeks." 

AI Opportunity Could Reach $2.5 Billion

ACS expects to provide about 20 MW for one potential customer this year, with plans to deliver roughly 32 MW more in 2028, which it expects the same customer to take. The company said the additional capacity could generate about $1.5 billion more over a 20-year term, bringing the full 52 MW to an aggregate of about $2.5 billion. That 52 MW would represent no more than 17% of the campus's potential capacity, it added.

A full wind-down would close out an operation on which the company built its early business, though it would continue to hold Bitcoin as a treasury asset. 

Another Bitcoin Miner Joins The AI Infrastructure Race 

Hyperscale Data, an AI data center company, operates a 617,000-square-foot campus in Dowagiac, Michigan, where it has mined Bitcoin while repurposing the site toward high-performance computing (HPC) and colocation. It currently runs about 30 MW there and believes the campus could eventually support more than 300 MW.

The company has mined Bitcoin through its subsidiary Sentinum since March 2021. The company holds around 709 Bitcoin, valued at over $46 million, according to data from Bitcoin Treasuries.net.

The move fits a broader migration of Bitcoin miners into AI infrastructure, as operators with power, land, and cooling already in place repurpose their sites for more lucrative compute. 

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