By Nate Wolf
Riot Platforms stock took off in response to news that the Bitcoin miner is cashing in via a shift toward operating data centers for artificial intelligence.
The company said Friday it reached a deal worth up to $1 billion to lease data-center capacity to Advanced Micro Devices.
Riot shares spiked 11%. The stock is now up more than 40% in 2026, while AMD shares were up 2.2% on the day.
AMD will lease 25 megawatts of capacity at Riot's Rockdale data center in Milam County, Texas, under an initial 10-year, $311.0 million contract. Three five-year extension options could bring the total contract value to around $1 billion.
The lease marks another milestone for Bitcoin miners such as Riot that have pivoted to operating data centers amid a surge in AI and high-performance computing. Potential tenants like AMD are looking for operators with ready access to the power grid that can quickly stand up data-center capacity.
Riot has struggled for most of its 22-year run on the stock market, generating a yearly net profit for the first time as a public company in 2024. Before Friday, analysts expected the company to swing to an $84.4 million net loss in 2025 and a $281.2 million loss in 2026.
The company's transition to AI came after activist investor Starboard Value took a stake in the Bitcoin miner in late 2024 and encouraged it to convert some facilities into capacity for large data-center users.
Riot purchased the Rockdale site for $96 million, funded entirely through the sale of Bitcoin from its balance sheet, the company said Friday. It intends to convert the full 700 megawatts of power capacity at the site, where it previously operated under its own ground lease, for data-center tenants.
On top of its initial lease, AMD holds an option for an additional 75 megawatts of capacity and a right of first refusal for another 100 megawatts.
"This partnership represents a validation of Riot's infrastructure, development capabilities, the attractiveness of our sites, our readily available power capacity, and our ability to offer innovative solutions to meet the requirements of top-tier tenants," Riot CEO Jason Les said in a statement.
Riot will make around $90 million in capital expenditures to retrofit the Rockdale facility. The company expects the lease with AMD to generate an average of $25 million a year in net income.
Write to Nate Wolf at nate.wolf@barrons.com
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(END) Dow Jones Newswires
January 16, 2026 11:13 ET (16:13 GMT)
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