Riot Platforms’ $9.1 Billion AI Move: Shares Surge 25%
Riot Platforms saw a 25% surge in its shares following an alleged $9.1 billion massive data center deal with AI giant Anthropic.
Riot Platforms (RIOT), a leading name in the cryptocurrency mining sector, announced that it has signed a 20-year contract to lease its Texas facilities to a massive AI laboratory. This strategic move, expected to generate a total of $9.1 billion in revenue, demonstrates the company’s commitment to becoming an AI infrastructure provider, moving beyond being just a mining firm. According to information shared by Bloomberg, it is reported that this unnamed mysterious partner is Anthropic, the developer of the popular AI model Claude.
Riot Platforms and AI Collaboration
Under the agreement, Riot will lease 191 megawatts (high electrical power capacity) of data center space at its Rockdale campus until June 2048. The company secured $573 million in financing from Morgan Stanley for the first phase of this massive project. While capacity delivery is planned to be gradual, the first 96-megawatt section is targeted for deployment by the end of 2027, with the full capacity expected to be online by mid-2028. If extension options in the contract are exercised, the total contract value is projected to reach up to $16.1 billion.
Although the company’s Nasdaq-listed shares closed the regular session down, they climbed to $24.3 in after-hours trading following the announcement. CEO Jason Les, recalling a previous deal with AMD, emphasized that Riot has become one of the most important infrastructure players for the high-workload AI ecosystem.
Financial Outlook and Bitcoin Production
Riot Platforms announced this massive deal alongside its second-quarter financial results. Although the company’s total revenue increased by 14% year-over-year to $174.2 million, a net loss of $237.2 million was recorded due to operational costs. Having produced 1,587 Bitcoin (BTC) during this period, the company continues to maintain its liquidity strength by holding 11,380 Bitcoin (BTC) and approximately $548.9 million in cash.
During this period where data center revenues reached $23.2 million, Bitcoin mining revenues stood at $113.7 million. The company states that it distinguishes itself from its competitors through its massive power capacity and in-house engineering expertise. Riot’s strong corporate structure, which is also prominent in its visual identity, solidifies its place in the technology world with such billion-dollar agreements.