Riot Platforms Sees Significant Share Boost
On Thursday, shares of Riot Platforms experienced a significant boost, soaring by 10% following the company’s announcement of a series of substantial transactions positioning it strategically amidst the global surge in demand for AI computing resources. Notably, Riot disclosed a noteworthy land acquisition valued at $96 million and a major data center leasing agreement with AMD, underscoring an intensifying competition for resources in the AI sector.
Strategic Land Acquisition
Central to Riot’s recent strategies is the complete acquisition of 200 acres in Milam County, Texas, particularly at its Rockdale facility. This $96 million purchase, financed through the sale of approximately 1,080 Bitcoin from Riot’s reserves, transitions the once-leased property into full ownership for the firm, enabling future high-density data center initiatives. The site is equipped with essential infrastructure comprising a 700 megawatt (MW) power grid integration, dedicated water supply, and fiber connectivity, all vital for accommodating the rising demands of AI computing clusters.
In total, Riot now possesses over 1,100 acres along with a remarkable 1.7 gigawatts of power across its Rockdale and Corsicana locations, reinforcing its presence in the “Texas Triangle,” a burgeoning hub for data center development.
Data Center Lease Agreement with AMD
Alongside this acquisition, Riot Platforms revealed a pivotal Data Center Lease and Services Agreement with AMD, a major player in AI hardware production. Starting in January 2026, AMD will lease an initial critical IT load of 25 MW, with the contract potentially expanding in two phases, culminating in a projected revenue of $311 million over the first ten years. This agreement includes provisions for extended leases that could inflate the total contract value to around $1 billion.
Key features of the contract are an option for a 75 MW expansion and a right of first refusal for an additional 100 MW, which, if exercised, could see AMD utilizing up to 200 MW at the Rockdale Site, nearly a third of its overall capacity. Riot is already undertaking renovations to accommodate this expansion, with a capital expenditure of about $89.8 million, averaging $3.6 million per MW. The lease arrangement will function as a modified-gross agreement, set to yield an estimated $25 million in annual net operating income.
Shift Towards AI Infrastructure
Riot’s pivot from Bitcoin mining to becoming a provider of AI-focused infrastructure comes at a time when demand for data center capacity and power is at an all-time high, with tech companies and semiconductor manufacturers racing to lock in necessary resources.
Despite this strategic redirection, Riot Platforms remains one of the largest corporate holders of Bitcoin, currently holding a substantial 18,005 coins, according to BitcoinTreasuries data. The company’s leadership claims that their exploration into AI and High-Performance Computing (HPC) capabilities has only been underway for less than a year, yet achievements have been rapid. According to CEO Jason Les, the agreement with AMD underscores the effectiveness of Riot’s infrastructure and development capabilities while also highlighting the desirability of its facilities for high-profile clients.
