Key Takeaways:
Riot Platforms signed a 20-year data center lease with Anthropic expected to generate about $9.1 billion, sending shares up 25%.
Chief Executive Jason Les called the lease "a defining moment in our evolution into a leading developer of large-scale data centers," saying Riot had contracted 241 megawatts in six months.
The agreement covers 191 megawatts of critical IT capacity at Riot's Rockdale, Texas campus, with the first 96 megawatts due by December 2027 and full capacity by June 2028. Two five-year tenant options could lift potential contract value to $16.1 billion. Morgan Stanley provided a $573 million interim facility to fund early construction, with Riot expecting debt to cover 80 percent to 90 percent of the roughly $2.1 billion to $2.3 billion buildout.
The AI revenue stream could ease Riot's Bitcoin selling pressure. Riot sold $24.5 million of BTC as prices weakened, and the company posted a $237 million net loss in Q2. With data center revenue now flowing, Riot may reduce BTC sales, easing market pressure.
The deal is Riot's second major AI contract in 2026, following a 50 MW agreement with AMD. Riot delivered AMD's first 25 megawatts in the second quarter and expects another 10 megawatts in November 2026 and 15 megawatts in May 2027. Combined, the two tenants give Riot $9.8 billion in long-term contracted revenue.
Riot's pivot comes as Bitcoin mining economics deteriorate. The company mined 1,587 BTC in Q2, up from 1,426 a year earlier, but mining revenue fell to $113.7 million from $140.9 million as average Bitcoin prices declined and network hash rate climbed. Riot's cost to mine one Bitcoin, excluding depreciation, was $49,912.
The company ended June with 11,380 BTC valued at about $666 million, alongside $548.9 million in cash. Its investor presentation says continued Bitcoin inventory sales are being used as a primary funding source for the equity portion of its data center spending.
Riot's Q2 results showed the strain. The company posted adjusted EPS of -$0.33 versus a forecast of -$0.23, with revenue of $174.2 million, up 14 percent year over year. GAAP net loss widened to $237 million, driven by noncash charges tied to Bitcoin holdings and depreciation.
With data center revenue now contributing $23.2 million in Q2, Riot has an alternative funding source. If the AI venture reduces the need to sell BTC during the downtrend, it could help relieve market pressure from major miners. Riot's shift mirrors moves by Core Scientific, IREN, Applied Digital, TeraWulf, and Hut 8, which have all pivoted toward AI data centers.
This article is for informational purposes only and does not constitute investment advice.
