Riot Platforms, Inc. (NASDAQ:RIOT), a company traditionally known for its bitcoin mining activities, experienced a notable uptick in its stock price on Friday following the announcement of key real estate acquisitions and a significant data center lease agreement. Based in Colorado, Riot disclosed the completion of a substantial land purchase and the execution of its maiden hyperscale data center lease, suggesting a strategic broadening of its operational focus.
The firm detailed that it now holds full ownership of roughly 200 acres beneath its Rockdale facility located in Milam County, Texas. This acquisition was financed through the liquidation of bitcoin assets previously held on its balance sheet, amounting to a transaction value of $96 million. By acquiring the land outright, Riot supplants its former arrangement of a long-term ground lease, thereby securing permanent and autonomous control over the property.
Financially, Riot has reported maintaining a robust position as of October 30, with reported working capital at $170 million. This includes an unrestricted cash reserve of approximately $330.7 million alongside $75.6 million held in restricted cash accounts. These metrics position Riot with substantial liquidity to support its evolving business model.
The Rockdale site is strategically advantageous, featuring a 700-megawatt grid connection, direct fiber optic access, and dedicated water resources. Riot has communicated its intention to progressively reallocate the full power capacity at Rockdale to support data center tenants, marking a pivot from decentralized bitcoin mining power usage to multi-tenant data center operations.
Expanding beyond this specific parcel, Riot now has consolidated control over more than 1,100 acres of land and 1.7 gigawatts of pre-approved power capacity across two campuses within Texas. These facilities are situated within the "Texas Triangle," a key economic region that encompasses major metropolitan areas such as Austin, Dallas, Houston, and San Antonio, enhancing their logistical and infrastructural appeal for data services.
Complementing its property acquisition, Riot has entered into a long-term data center lease agreement with Advanced Micro Devices, Inc. (NASDAQ:AMD). The initial contract stipulates a commitment for 25 megawatts of critical IT load at the Rockdale facility. Riot anticipates a phased delivery timeline commencing in January 2026 and reaching completion by May of the same year.
This lease has a duration of ten years and the projected revenue for Riot is estimated at approximately $311 million across this period. Moreover, the agreement includes provisions for three optional five-year extensions potentially elevating the contract's total value to nearly $1 billion. AMD has also secured rights to expand its leasehold capacity incrementally, with an option to increase up to 200 megawatts.
Riot's CEO, Jason Les, emphasized that the arrangement serves as validation of Riot's capabilities in infrastructure development, access to power, and its overall facility operations. He further articulated that the partnership with AMD distinctly positions Riot as a major data center developer within a relatively short period since entering this market segment.
From AMD's perspective, Chief Information Officer Hasmukh Ranjan acknowledged Riot's scale and the availability of power resources as crucial elements underpinning AMD's strategic roadmap for advancing its artificial intelligence infrastructure. This alignment suggests strong operational synergy between the two companies in servicing AI computational demands.
Market reaction to these developments was favorable, with Riot Platforms’ shares rising by 11.89%, reaching $18.54 during trading hours on Friday. This surge was noted through Benzinga Pro data and reflects investor optimism surrounding the company's strategic ventures and expanding data center portfolio.