Hyperscale Data recorded a $2.3 million impairment while reallocating Michigan data-center power from Bitcoin mining to AI and colocation.

Hyperscale Data Inc. (NYSE American: GPUS) recorded a $2.3 million impairment charge for Bitcoin-mining equipment at its Michigan data center during the three and six months ended June 30, 2026. The accounting review followed execution of a master services agreement with a third-party customer for AI compute, neocloud hosting, and colocation services.

The company expects to allocate a significant portion of the Michigan facility’s available electrical capacity to that customer’s deployments. As a result, it expects to substantially wind down Bitcoin mining at the location and redirect power capacity toward AI compute, neocloud, and colocation.

The filing says the impairment did not reflect physical deterioration of the mining equipment. It arose because of the expected reduction in use and uncertainty over whether the affected equipment would be redeployed, relocated, or sold.

Management concluded that the asset group’s carrying amount was not recoverable and reduced it to estimated fair value. Fair value was based primarily on observable market data for comparable Bitcoin-mining equipment, using an orderly-liquidation-value approach.