Key Insights
- Riot Platforms sold Bitcoin to finance a Texas land purchase and data center project.
- Riot Platforms had signed a long-term lease of AI-focused computing capacity with AMD.
- Riot Platforms shares gained over 12% following the announcement.
Riot Platforms’ stock surged dramatically following the Bitcoin mining firm’s announcement of a land purchase and a 10-year lease for artificial intelligence computing, suggesting the company was operating beyond its mining business.
The company reported that the announcements generated a positive market reaction, as its shares increased by over 11% before market opening and continued to appreciate throughout the trading day.
Riot Platforms Funds Texas Land Purchase Through Bitcoin Sale
The firm has financed the purchase entirely by selling approximately 1,080 Bitcoin on its balance sheet. The transaction grants Riot complete ownership of the site, comprising a 700-megawatt grid connection, a separate water supply, and fiber connectivity.
The Rockdale property is positioned as a long-term infrastructure asset. Riot said full ownership allows the company to retain control over development timelines and usage as demand for power-intensive computing grows.
The land acquisition followed an earlier disclosure that the company sold 1,818 Bitcoin in December as part of a broader shift toward using its infrastructure for applications beyond cryptocurrency mining.
As of Dec. 31, Riot reported holding 18,005 Bitcoin, valued at more than $17 billion at the time of publication. The company stated that it continues to mine Bitcoin actively while also evaluating additional uses for its power and data center assets.
AMD Lease Marks Entry Into Hyperscale Data Center Market
Riot Platforms also announced it has entered into a large-scale data center lease and services agreement with semiconductor company Advanced Micro Devices at the Rockdale site.
Under the initial terms, Riot will provide AMD with 25 megawatts of critical IT load capacity.
source: Riot platforms(X)
The first lease period is 10 years, and Riot predicts the contract will generate around $311 million in revenue during this period. The company said the total value could approach $1 billion if extension options are exercised.
AMD retains the option to expand the leased capacity up to 200 megawatts. If exercised, that expansion would place Riot among a group of operators serving hyperscale computing clients in the United States. Riot said the agreement represents its first large-scale data center lease focused on high-performance computing workloads.
Riot CEO Jason Les said the agreement reflects the company’s evaluation process for alternative uses of its assets, which began less than a year ago. He noted that the deal establishes Riot as a participant in the U.S. data center market supporting AI and high-performance computing.
Strategic Shift Reflects Broader Industry Movement
The Texas deal builds on Riot’s recent disclosures regarding changes in its operational focus.
The company has said it is transitioning part of its infrastructure strategy from exclusive reliance on Bitcoin mining toward serving external customers with high-density computing needs, including artificial intelligence.
Riot stated that AI-focused clients require reliable power, specialized data center design, and consistent uptime. The company said its existing infrastructure, developed for large-scale mining operations, is suited to these requirements. The AMD lease is intended to convert existing power capacity into recurring infrastructure revenue.
The agreement also positions Riot in competition with other operators supplying large-scale computing environments to chipmakers and AI developers.
Riot said the partnership validates its power strategy and its ability to design and operate complex digital infrastructure. Riot Platforms currently holds more than 1.7 gigawatts of approved power capacity across its Texas-based properties.
The company stated that this capacity provides flexibility to scale services for enterprise and AI data center customers as demand increases.
Peers Pursue Similar Infrastructure Strategies
The move by Riot is in line with other publicly traded Bitcoin mining firms that announced theirs.
CleanSpark announced on Wednesday that it has reached an agreement to acquire 447 acres of land in Brazoria County, Texas, where it plans to construct a 300-megawatt data center that could support AI and high-performance computing.
Plans by other miners, including MARA Holdings, Core Scientific, Hut 8, and TeraWulf, have also been announced to expand their infrastructure offerings as Bitcoin mining difficulty increases. These companies have cited the adaptability of mining facilities for alternative computing uses.
