You can import the text file with some parameters preset (partly taken from Hard whitespace):

\documentclass{article}
\usepackage{graphicx}% http://ctan.org/pkg/graphicx
\usepackage{filecontents}% http://ctan.org/pkg/filecontent
\usepackage{varwidth}% http://ctan.org/pkg/varwidth
\begin{filecontents*}{asciiart.txt}
Lorem ipsum dolor sit amet, consectetur adipiscing elit. Donec sed magna risus, id iaculis nisi. \n
Phasellus fermentum lorem ut velit ultrices at tincidunt lacus suscipit. Maecenas sed convallis dolor. \n
Etiam at diam velit, quis condimentum massa. Aenean vel massa mi. In id placerat dui. Curabitur \n
ligula justo, pellentesque sed interdum ut, vulputate et sapien. Donec semper, nisi et \n
tincidunt vulputate, lorem tortor rhoncus dui, sed posuere tellus nisi nec magna. Cras \n
sodales, quam at tristique pellentesque, massa orci hendrerit ipsum, nec congue diam elit \n
sed urna. Curabitur consequat, metus in accumsan aliquam, ligula felis laoreet elit, non \n
dapibus sapien libero eu dolor.
\end{filecontents*}
\def\n{}% Remove the functionality typically used for \n in a different language
\setlength{\parindent}{0pt}% Remove paragraph indent
\newsavebox{\asciiart}% Box storing ASCII art content
\pagestyle{empty}% Remove page header/footer (including page numbers)
\begin{document}
\begingroup
\ttfamily% Mono-spaced/typewriter font
\obeyspaces% Keep all spaces
\let =\ % Fix spaces
\obeylines% Obey line breaks
\begin{lrbox}{\asciiart}\begin{varwidth}{10\textwidth}
\input{asciiart.txt}
\end{varwidth}\end{lrbox}% Read ascii art
\resizebox{\textwidth}{!}{\usebox{\asciiart}}% Rescale and print ascii art.
\endgroup
\end{document}
Packages used:
graphicx for scaling content (in our case the box \asciiart);
filecontents for writing content to files without the regular filecontents restrictions. Probably not needed in your case since you already have asciiart.txt.
varwidth for variable width boxing.
geometry can also be used to scale the paper size to your liking.