Riot Platforms (RIOT) Stock: Bitcoin Miner Pops 16% on Friday – Here’s Why

TLDR

• Riot Platforms stock jumped 16.05% on Friday to close at $19.23 after announcing a major data center deal with AMD
• The company purchased 200 acres of land in Rockdale, Texas for $96 million using 1,080 Bitcoin from its holdings
• Riot signed a 10-year lease with AMD to provide up to 200 megawatts of data center capacity worth $311 million initially
• The AMD contract could expand to approximately $1 billion if all extension options are exercised over time
• Trading volume spiked to 53.4 million shares, 172% higher than the three-month average

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Riot Platforms closed Friday trading session at $19.23. The stock climbed 16.05% after the company revealed plans to expand its data center operations.

Riot Platforms, Inc., RIOT

The Bitcoin mining company used 1,080 coins from its treasury to buy land it already operated on. The purchase price was $96 million for 200 acres in Rockdale, Texas.

With the land now owned outright, Riot moved quickly. The company signed a 10-year agreement with AMD the same day.

The initial contract is worth $311 million. AMD will lease data center capacity starting with 25 megawatts of critical IT load.

The deal includes room to grow. AMD can expand its footprint to 200 megawatts by May 2026 if it chooses.

Three five-year extension options sweeten the pot further. If AMD exercises all options, the total contract value could hit $1 billion.

Piper Sandler maintained its Overweight rating on Riot with a $26 price target. The firm called the AMD deal “an encouraging first step” toward contracting the full 1.2 gigawatts of capacity across Riot’s sites.

Market Response and Peer Movement

Trading volume told the story of investor interest. Riot saw 53.4 million shares change hands on Friday.

That’s 172% above the three-month average of 19.7 million shares. The market clearly took notice of the announcement.

Other Bitcoin miners caught the wave too. Mara Holdings gained 6.57% while Hut 8 rose 4.14%.

The broader market stayed flat. The S&P 500 dipped 0.07% and the Nasdaq fell 0.06%.

Riot’s stock has climbed 30.78% year-to-date. The company repositioned itself as a Bitcoin miner back in 2016 and has grown 612% since that pivot.

Data Center Strategy Takes Shape

Piper Sandler sees major upside in the data center transition. The firm estimates a full conversion of Riot’s Rockdale and Corsicana sites to AI and high-performance computing data centers could represent over $30 per share in value.

The AMD agreement gives the chip maker right of first refusal on an additional 100 megawatts. This brings potential total commitment to 200 megawatts of critical IT infrastructure.

Riot’s treasury still holds 16,925 Bitcoin after the land purchase. The company used its digital assets strategically to fund expansion without diluting shareholders or taking on debt.

AMD currently trades at $232.50 with a market cap of roughly $379 billion. The chip maker has posted a 12.18% return over the past week and 92.43% over the last year.

The Rockdale site sits near Austin, Texas. Riot also owns a facility in Corsicana with similar development potential.

Piper Sandler believes the AMD deal positions Riot as a “credible data center option for hyperscaler tenants.” The firm sees this as validation of Riot’s pivot from pure Bitcoin mining to diversified data center hosting.

Riot Platforms now operates with a market cap of $7.2 billion. The stock trades within a 52-week range of $6.19 to $23.93.

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