Shares of Bitcoin mining firm Riot Platforms surged roughly 11% after the company announced a landmark, long-term data center hosting agreement with semiconductor giant AMD, signaling a strategic pivot beyond pure Bitcoin mining and into hyperscale artificial intelligence infrastructure. The rally reflects investor optimism around Riot's move to monetize its vast power footprint in Texas by hosting high-performance computing (HPC) workloads for major technology clients.
Under the agreement, Riot will host AMD as its first hyperscale tenant at its Rockdale site in Texas. The initial deployment will deliver 25 megawatts of critical IT load, with construction beginning in January 2026 and completion expected by May 2026. The base 10-year contract is expected to generate about $311 million in revenue. Crucially, the deal includes significant upside: AMD holds options to expand capacity at the site to as much as 200 MW, which could lift the total contract value to approximately $1 billion if all extension options are exercised.
To meet AMD's high-density computing requirements, Riot is retrofitting an existing building at a cost of $89.8 million, adapting infrastructure originally built for Bitcoin mining to support advanced AI workloads.
Alongside the hosting agreement, Riot announced the fee-simple acquisition of the 200-acre Rockdale site for $96 million. The purchase was funded entirely through the sale of roughly 1,080 Bitcoin from the company's balance sheet. Owning the land outright unlocks the site's full 700 MW grid interconnection, clearing the way for additional data center expansion and eliminating more than $130 million in long-term lease obligations.
The AMD deal marks a clear pivot in Riot's business model, positioning the company closer to the AI hosting strategy pioneered by peers. Analysts have highlighted Riot's access to 1.7 gigawatts of fully approved power capacity in tier-one Texas markets as a rare and highly attractive asset for hyperscale tenants. The agreement introduces a stable, multi-year revenue stream insulated from Bitcoin mining economics' volatility.
"This partnership represents a validation of Riot's infrastructure, development capabilities, the attractiveness of our sites, and our ability to meet the requirements of top-tier tenants," said Riot CEO Jason Les.
