Hyperscale Data signed its first master services agreement on June 24 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. The Las Vegas-based company (NYSE American: GPUS) announced 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 accelerates the company's exit from Bitcoin mining 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 Signs 10-Year MSA With Expansion Options
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 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.
Chief Executive William B. Horne said, "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."
Company Operates 28 MW Bitcoin Mining Capacity and Holds 726.94 BTC
Executive Chairman Milton "Todd" Ault III stated, "We currently operate approximately 28 MW of Bitcoin mining capacity at the Michigan Campus." Ault added 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.
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. Ault has said the company intends to keep adding to a treasury it views as a foundational asset.
IREN and Galaxy Digital Complete AI Infrastructure Acquisitions
IREN acquired 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.
FAQ
What did Hyperscale Data announce on June 24?
Hyperscale Data announced on June 24 that its subsidiary Alliance Cloud Services signed a master services agreement to supply 20 megawatts of AI compute capacity at its Michigan data center campus with a California-based neocloud provider.
How much Bitcoin does Hyperscale Data hold?
Hyperscale Data held 726.94 Bitcoin worth about $45.9 million as of June 21 through Sentinum and Ault Capital Group.
What is the potential revenue from the Hyperscale Data MSA deal?
The 10-year MSA with two five-year extension options is expected to generate in excess of $1.2 billion in revenue at its base 20 MW capacity, and could exceed $3.0 billion if expansion options to 52 MW plus an additional 32 MW are exercised and carried through the full term.
