Hyperscale Data has signed its first master services agreement to supply 20 megawatts of AI compute capacity at its Michigan data center campus, a contract that could generate more than $1.2 billion over its full term and accelerate the company’s exit from Bitcoin mining.
The Las Vegas-based company (NYSE American: GPUS) announced on June 24 that Alliance Cloud Services, an indirect wholly owned subsidiary, entered the agreement with a California-based neocloud provider at a campus originally built to mine digital assets. The deal lands as a growing share of Bitcoin miners convert power-heavy sites into AI infrastructure, and GPUS shares rose about 20% after the announcement.
Hyperscale Data Deal Terms
The agreement covers 20 megawatts of critical AI compute capacity expected to be operational during the fourth quarter of 2026, with revenue that may begin as early as late September. The MSA runs an initial term of 10 years with two five-year extension options, and if exercised for that maximum term it is expected to generate in excess of $1.2 billion in revenue.
The contract also gives the customer room to grow. It carries an option to expand up to a total of 52 MW, along with a right to an additional 32 MW that, if exercised within the first two years and carried through the extension options, would push the total value above $3.0 billion. That 52 MW would represent roughly 17% of the more than 300 MW the company believes the campus may ultimately support.
Hyperscale’s Chief Executive William B. Horne tied the deal to the company’s transition.
“I am pleased by the progress that we have made as we continue the evolution of our Michigan Campus from a Bitcoin mining-focused facility into a next-generation AI and high-performance computing campus,” Horne said.
Hyperscale Data Winds Down Mining
Executive Chairman Milton “Todd” Ault III confirmed how much mining capacity remains. “We currently operate approximately 28 MW of Bitcoin mining capacity at the Michigan Campus,” Ault said, adding that the company expects to allocate an increasing portion of the campus to AI and high-performance computing workloads as the customer’s deployments come online.
The retreat from mining has not ended the company’s exposure to Bitcoin. Hyperscale Data held 726.94 Bitcoin worth about $45.9 million as of June 21 through Sentinum and Ault Capital Group, after the latter bought roughly eight coins that week, and Ault has said the company intends to keep adding to a treasury it views as a foundational asset.
The pivot mirrors moves across the sector with IREN acquiring Spain’s Nostrum Group this month to add about 490 megawatts of grid-connected power, a step that followed its $3 billion convertible notes offering and a $9.7 billion GPU cloud deal with Microsoft. Galaxy Digital raised $1.4 billion to convert its Helios mining site in Texas into an AI data center under a 15-year CoreWeave lease.
