What's Happening?
Riot Platforms, a Bitcoin mining company, has completed a $96 million acquisition of a facility in Rockdale, Texas, funded entirely through the sale of 1,080 Bitcoin from its holdings. This strategic purchase
includes 200 acres in Milam County and positions Riot as a significant player in the data center market with 1.7 gigawatts of approved power capacity across Texas. Additionally, Riot has entered into a Data Center Lease and Services Agreement with AMD, securing a 10-year lease for 25 MW of critical IT load capacity, expected to generate approximately $311 million in revenue. The agreement includes options for three five-year extensions, potentially increasing the total contract value to $1 billion. AMD holds expansion rights for an additional 75 MW of capacity and a right of first refusal for another 100 MW, which could bring AMD's total leased capacity to 200 MW at the Rockdale site.
Why It's Important?
This acquisition and partnership mark a significant shift for Riot Platforms from Bitcoin mining to becoming a major player in the data center industry. By leveraging its digital assets for strategic real estate investments, Riot is expanding its business model to include high-performance computing infrastructure. The partnership with AMD not only provides a substantial revenue stream but also validates Riot's infrastructure capabilities and the attractiveness of its sites. This move could influence other cryptocurrency mining companies to diversify their operations into data center services, especially as the demand for high-performance computing and AI infrastructure grows. The transaction also highlights the potential for digital assets to be used in large-scale real estate and infrastructure investments.
What's Next?
Riot Platforms plans to begin the initial 25 MW deployment in January 2026, with completion expected by May 2026. The company is retrofitting existing buildings to meet AMD's infrastructure requirements, with a total retrofit expenditure of $89.8 million. As the partnership with AMD progresses, Riot is positioned for additional leasing opportunities across its expanded portfolio. The success of this venture could lead to further collaborations with other tech companies seeking reliable data center partners. Additionally, the expansion rights held by AMD suggest potential future growth in capacity and revenue for Riot, contingent on the successful execution of the current agreement.
