TLDR
- Riot Platforms secured a 10-year, $311 million lease deal with AMD for 25 megawatts of data-center capacity at its Rockdale, Texas facility
- The contract includes extension options that could push total value to approximately $1 billion over time
- RIOT stock jumped 12% to $18.55 and has gained over 45% in 2026
- This marks the company’s first third-party data-center lease, validating its pivot from Bitcoin mining to AI infrastructure
- Riot purchased the Rockdale site for $96 million using Bitcoin from its balance sheet and plans to convert all 700 megawatts for data-center use
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Riot Platforms stock surged 12% to $18.55 on Friday after announcing a major lease agreement with Advanced Micro Devices. The deal marks a turning point for the Bitcoin miner as it transitions into the AI data-center business.
AMD will lease 25 megawatts of capacity at Riot’s Rockdale facility in Milam County, Texas. The initial 10-year contract is worth $311 million.
Three five-year extension options could bring the total value to around $1 billion. AMD also holds rights to lease an additional 75 megawatts and has first refusal on another 100 megawatts.
The agreement represents Riot’s first lease with a third-party data-center customer. Clear Street analysts called it “proof-of-concept” for the company’s high-performance computing business strategy.
Riot purchased the Rockdale site for $96 million, funded entirely by selling Bitcoin from its holdings. The company plans to convert the full 700 megawatts of power capacity at the location for data-center tenants.
The stock has now climbed more than 45% in 2026. AMD shares rose 2.3% on the same day.
From Bitcoin Mining to AI Infrastructure
Riot’s shift follows pressure from activist investor Starboard Value. Starboard took a stake in late 2024 and pushed the company to convert facilities for large data-center users.
The timing works in Riot’s favor. AI companies need operators with quick access to power grids who can rapidly deploy data-center capacity.
Riot will spend around $90 million to retrofit the Rockdale facility. The company expects the AMD lease to generate an average of $25 million per year in net income.
Cantor Fitzgerald analysts noted the income per megawatt is lower than similar industry deals. However, the per-megawatt capital expenditures are also lower.
Financial Turnaround in Progress
Riot has struggled financially for most of its 22 years as a public company. The firm posted its first yearly net profit in 2024.
Before Friday’s announcement, analysts projected an $84.4 million net loss for 2025. They expected a $281.2 million loss in 2026.
CEO Jason Les called the partnership a validation of Riot’s infrastructure and development capabilities. He highlighted the company’s readily available power capacity and ability to serve top-tier tenants.
Clear Street maintains a Buy rating on RIOT with a $29 price target. The firm lists Riot as a top pick for its AI strategy.
Cantor Fitzgerald reiterated an Overweight rating and raised its price target to $31 from $25. Analysts Brett Knoblauch and Gareth Gacetta wrote that landing this lease shows Riot can execute on building and energizing capacity.
Riot also operates a 1-gigawatt site under development in Navarro County, Texas. The company intends to convert that entire facility into a data center as well.
AMD holds an option for an additional 75 megawatts of capacity at Rockdale and a right of first refusal for another 100 megawatts at the site.
