Riot Platforms Stock Surges 13% on AMD Data Center Deal

Riot Platforms stock experienced a significant surge following a landmark agreement with Advanced Micro Devices (AMD). The company announced the purchase of 200 acres at its Rockdale, Texas, site and the signing of a long-term data center lease, marking AMD as the first major hyperscale tenant at the location.

This strategic move, funded entirely through the sale of approximately 1,080 bitcoin, secures long-term operational control and opens the door for large-scale data center development. The announcement immediately impacted the market, with Riot's stock jumping approximately 13% to trade at $18.70 per share.

The acquisition represents a fundamental shift in Riot's asset management strategy. The company completed a fee simple acquisition of the 200-acre property, replacing its prior ground lease at the Rockdale site. This transaction was financed entirely through the sale of 1,080 bitcoin from its corporate balance sheet, totaling $96 million.

The property is equipped with substantial infrastructure critical for data center operations, including a 700 MW grid interconnection, a dedicated water supply, and fiber connectivity. These assets provide the necessary foundation to support high-density computing workloads without requiring extensive new construction.

The lease agreement with AMD is structured to deliver 25 megawatts (MW) of critical IT load. This deployment will occur in two phases, with work scheduled to begin in January 2026 and complete by May 2026. The initial term of the lease is 10 years, with an expected contract value of $311 million.

The financial implications of the AMD lease are substantial for Riot's future revenue streams. The company projects that the agreement will contribute approximately $25 million in net operating income per year. Retrofit capital expenditures for the initial 25 MW deployment are estimated at $89.8 million, or $3.6 million per MW.

AMD holds significant expansion rights under the agreement, including an option to increase its footprint by an additional 75 MW. Furthermore, AMD retains a right of first refusal for an extra 100 MW, which would bring its total potential footprint at the Rockdale site to 200 MW. The total revenue potential could reach $1 billion if all three five-year extension options are exercised.

CEO Jason Les emphasized the strategic validation provided by the deal. He stated that the agreement validates Riot’s infrastructure and development capabilities, marking a turning point in the company's strategy to repurpose bitcoin mining assets for high-performance computing (HPC) and AI workloads.

The agreement validates Riot’s infrastructure and development capabilities, and marks a turning point in its strategy to repurpose bitcoin mining assets for high-performance computing and AI workloads.

Riot's move into data center leasing reflects a broader trend among publicly traded bitcoin miners. As mining costs rise and network difficulty increases, companies are seeking alternative revenue streams by leveraging their existing power assets. Riot began evaluating its sites for AI and HPC applications less than a year ago, demonstrating the agility of its strategic planning.

The company now owns more than 1,100 acres and 1.7 gigawatts of fully approved power capacity across its two Texas sites: Rockdale and Corsicana. These locations are approximately 100 miles apart, strategically positioned within the "Texas Triangle." This region covers Austin, Dallas, Houston, and San Antonio, serving as a major U.S. data center hub.

Riot plans to continue converting power capacity at both Rockdale and Corsicana for non-mining tenants. The company is actively pursuing further development and leasing opportunities, signaling a long-term commitment to diversifying its portfolio beyond cryptocurrency mining.

The partnership with AMD positions Riot Platforms at the intersection of cryptocurrency infrastructure and the booming artificial intelligence sector. By repurposing existing power and connectivity assets, the company is capitalizing on the high demand for AI compute resources while maintaining a foothold in the digital asset space.

Investors and industry observers will be watching closely as the two-phase deployment progresses throughout 2026. The successful execution of this lease could serve as a blueprint for similar transactions at the Corsicana site, potentially unlocking billions in revenue from Riot's vast power portfolio.

Ultimately, this deal highlights the evolving utility of large-scale power assets. As the digital economy grows, the ability to flexibly allocate energy between mining, AI, and traditional data center workloads becomes a critical competitive advantage.