Stock of Riot Platforms rose on pre-market trading following the company’s announcement of a major data center deal focused on AI with Advanced Micro Devices (AMD). This move indicates a new strategic direction for Riot, linking its Bitcoin mining equipment with the increasing need for AI computing resources.
Riot Enters AI Data Center Space
In a press release, Riot stated that it has entered into its first large-scale data center lease with AMD at the Rockdale site in Texas. As a result of this deal, Riot has emerged as a new player in the U.S. hyperscale data center market for high-performance computing workloads.
Under terms of the agreement, Riot will provide AMD with 25 megawatts of critical IT load capacity. Construction is scheduled to start in January 2026, and be completed by May 2026.
The term of the initial lease is ten years, and Riot expects to earn approximately $311 million from the deal. However, if the company exercises extension options, the total value of the deal could be increased to nearly $1 billion over time.
AMD retains the option to expand and increase the amount of leased capacity up to 200 megawatts, which would place Riot in competition with other top players in the U.S. hyperscale data center space.
Why Is RIOT Stock Up Today?
Stock holders responded positively to the news, resulting in a sharp price increase in Riot shares prior to the opening bell. According to TradingView, RIOT shares extended gains during the session, climbing over 12% to trade near $18.61. Its price is holding well above the previous close of $16.57, signaling sustained bullish interest.
Since the company continues to actively mine Bitcoin, Riot Bitcoin mining output keeps rising steadily. Following the purchase 200 acres of land at the Rockdale site by Riot for $96 million, the company sold around 1,080 Bitcoin from its balance sheet to fund the purchase.
Complete ownership of the land provides Riot with control of one of its most valuable assets for an extended period of time. In addition to a 700-megawatt grid connection, the property contains a dedicated water supply and fiber connectivity.
Riot said that this deal will unlock new opportunities for Riot’s AI customers and those seeking high density computing solutions. In addition, it will allow Riot to turn existing power capacity into on-going infrastructure revenue.
Why Are Bitcoin Miners Moving into AI?
The AMD deal puts Riot in direct competition with NVIDIA in the AI hardware space. Therefore, it extends the relevance of Riot’s business model well past crypto cycles. The AMD deal is part of a larger trend of increasing AI infrastructure demand from Bitcoin mining operations, which are increasingly becoming AI infrastructure.
AI companies need an enormous amount of reliable power and customized data center design to function effectively. Bitcoin miners have data centers operating at a high level of reliability and efficiency, which makes them ideal candidates to become AI infrastructure providers.
This is why there is a growing number of miners transitioning their focus to providing AI infrastructure. Riot is one of the first publicly traded miners to have secured a major AI customer (AMD).
The company executives stated that the partnership demonstrates Riot’s ability to develop its own products, and provides validation for its power strategy. The executives also stated that Texas is a prime location for the construction of large-scale digital infrastructure.
Riot currently has over 1.7 Gigawatts of approved power capacity across its Texas based properties. Hence, it believes it can use this capacity to provide AI and enterprise data center clients with a scalable solution.
Source: https://coingape.com/news/stocks/riot-stock-jumps-as-bitcoin-miner-signs-ai-deal-with-amd/
