Hyperscale Data Converts Michigan Mining Site to AI Compute Under SEC-Disclosed Contract
Hyperscale Data halts Bitcoin mining at Dowagiac to deploy 20 MW AI capacity; June filing details contract terms, costs, and conditional long-term revenue potential.
Hyperscale Data is stopping Bitcoin mining at its Dowagiac, Michigan campus to redirect the energized site toward a contracted AI and high-performance computing deployment.
The company sold 65 BTC for about $5.1 million. A June 24 SEC filing disclosed a subsidiary agreement to deploy 20 MW of AI compute in two 10 MW phases, with an option for an additional 32 MW. The initial term is 10 years plus two 5-year extensions.
Contract Terms and Capital Context
The filing states potential revenue could exceed $1.2 billion only if the agreement runs its maximum term. It also lists a $5 million upfront service charge and a $5.6 million security deposit. Estimated cost for the initial 20 MW deployment is $100-120 million, with roughly 60,000 square feet to be retrofitted.
The company is expected to continue mining at its Montana facility. The Michigan move therefore reflects site-specific portfolio management rather than a broader exit from Bitcoin mining.
Open Questions
Exact construction timeline, delivery milestones, and customer identity remain undisclosed. It is also unknown whether the Michigan pivot signals a wider strategy across other mining sites or remains limited to this location.