Hyperscale Data has ended Bitcoin mining at its Dowagiac, Michigan facility effective Sept. 1, 2026, to convert the campus for artificial intelligence colocation under a master services agreement between subsidiary Alliance Cloud Services and an undisclosed California-based neocloud provider. The company confirmed the shutdown on Sept. 2, 2026, after the customer inspected the site and the parties reviewed engineering design and equipment procurement, clearing capacity for the client’s AI deployment; mining continues at a Montana site while Michigan servers are slated for sale. The 10-year contract, signed June 23, 2026, covers 20 MW with two optional five-year extensions and could generate more than $1.2 billion over the maximum term, or above $3 billion if a further 32 MW first-offer option is taken within two years and held through both extensions; the client paid a $5 million upfront charge and a $5.6 million security deposit. A June Form 8-K indicated Phase 1 was expected to be operational by Sept. 21, 2026, with material revenues possibly beginning by month-end, though the company has not published an updated launch date. The Michigan campus is planned for about 340 MW total. To fund the buildout, Hyperscale sold roughly 830 BTC for about $53 million over five weeks, cutting holdings about 79% to roughly 215 BTC, while shares closed at a split-adjusted record low of $0.1984 on Sept. 2 after a one-for-five reverse split. The shift coincides with weaker mining economics and a broader industry pivot: average monthly Bitcoin hashrate fell from about 1,066 EH/s in Q1 to 940 EH/s in Q3 2026, and listed miners have announced more than $70 billion in AI and HPC contracts. Founder and Executive Chairman Milton "Todd" Ault III has said the stock is dramatically undervalued and that he intends to buy shares when legally permitted; the company has issued preliminary 2027 guidance and currently expects to divest Ault Capital Group in 2027.