A potential $1.2 billion AI deal ends Bitcoin mining at Hyperscale Data’s Michigan site.

Hyperscale Data Has Ceased Bitcoin Mining Operations in Michigan as It Fulfills the Requirements of the AI Data Center Master Services Agreement Expected to be Worth Approximately $1.2 Billion

Hyperscale Data (GPUS) has stopped all Bitcoin mining at its Michigan data center as of September 1, 2026 to prepare for an AI data center deployment under a previously announced master services agreement (MSA) with a California-based neocloud customer.

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(Very High)
Rhea-AI Sentiment
(Positive)
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Rhea-AI Summary

The MSA covers 20 MW of AI compute capacity over an initial 10-year term with two optional five-year extensions, and is expected to generate more than $1.2 billion in revenue if carried through the maximum term. The customer also holds an option for an additional 32 MW, which, if exercised within the first two years and extended for the same duration, would increase expected total contract revenue to over $3.0 billion.

Hyperscale Data anticipates about 340 MW of eventual total power capacity at the facility and estimates that full use of the MSA options would require no more than roughly 20% of that capacity, leaving about 80% for additional customers and future AI expansion, subject to successful development of the planned capacity. The company also expects additional gains from the intended sale of its Bitcoin mining servers and continues to plan a 2027 divestiture of Ault Capital Group via exchange of previously issued Series F Preferred Stock.

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Positive

• MSA expected revenue >$1.2 billion over up to 20 years for 20 MW AI capacity
• Expansion option to 52 MW could raise total MSA revenue to >$3.0 billion
• Bitcoin mining terminated to free power and resources for long-term AI contract
• Facility power potential ~340 MW, with about 80% estimated capacity remaining for future customers
• Planned sale of Bitcoin miners expected to generate additional gains

Negative

• Bitcoin mining operations ceased, removing that revenue stream at the Michigan facility
• AI capacity expansions and full 340 MW build-out are preliminary and subject to financing, development and other risks
• Additional 32 MW MSA option is discretionary for the customer and not yet exercised

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Following this news, GPUS has gained 3.43%, reflecting a moderate positive market reaction.

Argus tracked a trough of -4.4% from its starting point during tracking.

Our momentum scanner has triggered 42 alerts so far, indicating elevated trading interest and price volatility.

The stock is currently trading at $0.25.

Trading volume is exceptionally heavy at 42.2x the average, suggesting very strong buying interest.

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Recent insider filings recorded 374,741 shares bought versus 1,000 sold. That net-buying context sits alongside the AI transition, while execution, financing and power-availability risks remained material.

Expected MSA revenue$1.2 billionMaximum 20 MW term over 10 years plus extensions
Potential total contract revenue$3.0 billionAdditional 32 MW exercised through the Maximum Term
Initial deployment20 MWInitial MSA deployment
Additional compute capacity32 MWCustomer option under the MSA
Initial term10 yearsMSA initial term
Mining shutdown dateSeptember 1, 2026All Bitcoin miners turned off
Eventual facility capacity340 MWApproximately anticipated total power capacity
Remaining capacity80%Expected power capacity available for additional customers and expansion

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Tag-specific history showed mixed reactions, with several positive operational announcements followed by negative price reactions.

master services agreementfinancial
“pursuant to the previously announced master services agreement”
A master services agreement is a standing contract that sets the main terms, responsibilities, pricing framework and processes for future work between two parties, allowing individual projects or orders to be added later without renegotiating core terms. For investors, it signals predictability and reduced legal friction around revenue streams and costs—like a subscription plan for services that makes future income and obligations easier to forecast and value.
megawattstechnical
“provides for the deployment of 20 megawatts”
A megawatt is a measure of electrical power equal to one million watts, describing how much electricity a plant or device can generate or use at a single moment. Investors use megawatts to compare the size and earning potential of energy projects—larger capacity usually means more electricity to sell—much like comparing the horsepower of engines to judge how much work they can do. Knowing megawatts helps assess scale, revenue potential, and grid impact of energy assets.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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Master Services Agreement Has Expansion Potential of up to Approximately $3 Billion
Using Approximately 20%
of the Potential 340 Megawatts of Total Eventual Power Capacity at the Michigan Data Center 

LAS VEGAS, Sept. 2, 2026 /PRNewswire/ — Hyperscale Data, Inc. (NYSE American: GPUS), an artificial intelligence (“AI“) data center company anchored by Bitcoin (“Hyperscale Data” or the “Company“), today announced that it has ceased all Bitcoin mining operations at its Michigan data center (the “Facility“) and was undertaken as the Company is preparing the Facility for deployment of its customer’s AI data center infrastructure pursuant to the previously announced master services agreement (“MSA“).

The Company recently announced that the MSA with itsCalifornia
-based neocloud provider (the “Customer“), which provides for the deployment of 20 megawatts (“MW“), has an initial term of 10 years with two five-year extension options that may be exercised by the Customer (collectively, the “Maximum Term“).If exercised for the Maximum Term, the MSA is expected to generate in excess of$1.2 billion
in revenue.The MSA provides the Customer with a right to an additional 32 MW of critical AI compute capacity which, if exercised within the first two years of the initial term and continues through the two five-year extension options, is expected to result in total contract revenue in excess of$3.0 billion
.

Following the Customer’s inspection of the Facility and continued progress of the Company’s enhancement of the Facility, including engineering design and equipment procurement, Hyperscale Data and the Customer agreed that the Company immediately terminate the Company’s Bitcoin mining operations at the Facility to further the Company’s preparation of the Facility for its transition to AI data center operations.  Effective as of September 1, 2026, allBitcoinminers have been turned off. 

Importantly, the Company believes that the existing MSA represents only a portion of the long-term potential of the Facility. Even if the Customer fully exercises its options for the additional power for the Maximum Term, the Company estimates that the associated deployment would require no more than approximately 20%
of the approximately 340 MW of power capacity ultimately anticipated to be available at the Facility. Accordingly, the Company would retain the ability to enable the development of approximately 80%
of the expected power capacity available for additional customers and future AI data center expansion, subject to the successful development and availability of the planned power capacity.

The Company believes that this remaining capacity represents substantial additional potential beyond the existing MSA and provides Hyperscale Data with the opportunity to continue expanding the Facility as demand for AI computing infrastructure grows.

“We are pleased with the continued progress we are making at the Facility,” stated William Horne, the Company’s Chief Executive Officer. “The immediate shutdown of the Bitcoin mining operations allows our team to focus the Facility’s power, infrastructure and resources in preparing the Facility for its usage by our Customer. Further, as the expansion of the Facility to support AI computing infrastructure progresses, it is my belief that our stockholders will be rewarded as the Company’s market capitalization, which currently trades at a significant discount to other data center companies, begins to normalize in comparison to its available contracted power capacity.  In fact, earlier this year, VanEck’s head of digital asset research stated that Bitcoin mining companies, like ours, that could repurpose existing sites for AI were ‘sitting on a gold mine’ because they were trading at a steep discount to traditional data center companies.”

The Company believes transitioning the Facility away from Bitcoin mining, which has been completed, will enable it to dedicate available electrical capacity, physical infrastructure, personnel and capital reansion of the Facility to ultimately meet the demanding needs of the growing AI industry. In addition, the Company expects to recognize additional gains from its intended sale of the associated Bitcoin mining servers

The Company cautions you that these expansion concepts remain preliminary and subject to numerous risks and uncertainties, and there can be no assurance that such expansion capacity will ultimately be available, developed, financed, approved, economically

For more information on Hyperscale Data and its subsidiaries, Hyperscale Data recommends that stockholders, investors and any other interested parties read Hyperscale Data’s public filings and press releases available under the Investor Relations section at hyperscaledata.com or available at www.sec.gov.

About Hyperscale Data, Inc.

Through its wholly owned subsidiary Sentinum, Inc., Hyperscale Data owns and operates a data center that offers colocation and hosting services for the emerging AI ecosystems and other industries. Hyperscale Data’s other wholly owned subsidiary, Ault Capital Group, Inc. (“ACG“), is a hybrid private equity firm and operating company that acquires, finances, builds and actively manages businesses across financial services, digital assets, industrial services, hospitality, defense technologies and other sectors.

Hyperscale Data currently expects the divestiture of ACG (the “Divestiture“) to occur in 2027. Upon the occurrence of the Divestiture, the Company would be an owner and operator of data centers to support high-performance computing services, as well as a holder of the digital assets. Until the Divestiture occurs, the Company will continue to provide, through ACG and its wholly and majority-owned subsidiaries and strategic investments, mission-critical products that support a diverse range of industries, including an AI software platform, equipment rental services, defense/aerospace, industrial, automotive and hotel operations. In addition, ACG is actively engaged in private credit and structured finance through Ault Lending, LLC, a licensed lending subsidiary. Hyperscale Data’s headquarters are located at 11411 Southern Highlands Parkway, Suite 190, Las Vegas, NV 89141.

On December 23, 2024, the Company issued one million (1,000,000) shares of a newly designated Series F Exchangeable Preferred Stock (the “Series F Preferred Stock“) to all common stockholders and holders of the Series C Preferred Stock on an as-converted basis. The Divestiture will occur through the voluntary exchange of the Series F Preferred Stock for shares of Class A Common Stock and Class B Common Stock of ACG (collectively, the “ACG Shares“). The Company reminds its stockholders that only those holders of the Series F Preferred Stock who agree to surrender such shares, and do not properly withdraw such surrender, in the exchange offer through which the Divestiture will occur, will be entitled to receive the ACG Shares and consequently be shareholders of ACG upon the occurrence of the Divestiture.

This press release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements generally include statements that are predictive in nature and depend upon or refer to future events or conditions, and include words such as “believes,” “plans,” “anticipates,” “projects,” “estimates,” “expects,” “intends,” “strategy,” “future,” “opportunity,” “may,” “will,” “should,” “could,” “potential,” or similar expressions. Statements that are not historical facts are forward-looking statements. Forward-looking statements are based on current beliefs and assumptions that are subject to risks and uncertainties.

Forward-looking statements speak only as of the date they are made, and the Company undertakes no obligation to update any of them publicly in light of new information or future events. Actual results could differ materially from those contained in any forward-looking statement as a result of various factors. More information, including potential risk factors, that could affect the Company’s business and financial results are included in the Company’s filings with the U.S. Securities and Exchange Commission, including, but not limited to, the Company’s Forms 10-K, 10-Q and 8-K. All filings are available at www.sec.gov and on the Company’s website at hyperscaledata.com.

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What did Hyperscale Data (GPUS) announce about its Michigan operations on September 2, 2026?

Hyperscale Data announced that it has ceased all Bitcoin mining operations at its Michigan data center, effective September 1, 2026, to prepare the facility for deployment of a customer’s AI data center infrastructure under an existing master services agreement.

How much revenue is the Hyperscale Data (GPUS) AI master services agreement expected to generate?

The master services agreement for 20 MW of AI capacity is expected to generate over $1.2 billion in revenue if it runs through its 10-year initial term plus two five-year extension options, which together represent the agreement’s maximum term.

What is the potential value of the expansion option in the Hyperscale Data (GPUS) AI contract?

The customer has a right to an additional 32 MW of AI compute capacity. If exercised within the first two years and extended through the available options, total contract revenue from the MSA is expected to exceed $3.0 billion, according to the company.

How much of Hyperscale Data’s Michigan data center capacity will the current AI MSA use?

Even if the customer fully exercises its options for additional power, Hyperscale Data estimates that deployment under the MSA would require no more than about 20% of the roughly 340 MW of eventual anticipated power capacity, leaving around 80% for future customers and AI expansion.

Why did Hyperscale Data (GPUS) shut down its Bitcoin mining at the Michigan facility?

The Bitcoin mining shutdown was agreed with the customer so the company can dedicate power, infrastructure, personnel and capital to preparing the facility for AI data center operations. All Bitcoin miners were turned off as of September 1, 2026, and the company expects gains from selling the mining servers.

What future expansion opportunities does Hyperscale Data (GPUS) see at its Michigan AI data center?

Hyperscale Data anticipates approximately 340 MW of eventual power capacity at the facility. It believes that roughly 80% of this capacity could remain available beyond the current MSA, providing additional potential for new customers and AI infrastructure growth, subject to successful development and financing.

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