Bitcoin miner Riot Platforms (RIOT) has formalized its strategic pivot into high-performance computing (HPC), announcing a data center lease agreement with semiconductor giant AMD. The deal, potentially valued at $1 billion, sent Riot shares surging over 12% in early trading to reclaim the $17.80 level.
The AMD Lease: From 25MW to 200MW
Riot will lease 25 megawatts (MW) of critical IT load at its Rockdale, Texas facility to AMD for AI and HPC workloads. The initial 10-year term is valued at approximately $311 million in contract revenue. Delivery begins this month, with full completion expected by May 2026.
The agreement structure offers significant upside:
- Expansion Options: AMD holds rights to expand capacity up to 200 MW.
- Contract Value: Including three five-year extension options, the total deal value could reach nearly $1 billion.
- Infrastructure: Riot will retrofit an existing building at the Rockdale site, leveraging its massive power interconnection.
Self-Funding via Bitcoin Sales
To secure the site’s long-term viability, Riot acquired the 200-acre Rockdale property, previously held under a ground lease, for $96 million. The company funded the purchase entirely by liquidating approximately 1,080 Bitcoin from its corporate treasury.
The move mirrors a broader industry trend where miners like Core Scientific and Hut 8 are reallocating power capacity from SHA-256 mining to more lucrative AI compute contracts.
“This partnership represents a validation of Riot’s infrastructure… and our ability to offer innovative solutions to meet the requirements of top-tier tenants.”, Jason Les, CEO of Riot Platforms
Market Reaction
Riot (RIOT) outperformed its peer group, jumping 12% following the announcement, while AMD ticked up 2.2% to $231.98. The deal marks Riot’s first major diversification away from pure-play Bitcoin mining, a shift investors have increasingly demanded as halving economics compress mining margins.
