Riot Stock Soars on AMD Data Center Lease Agreement

Key Agreement Details

Riot Platforms (NASDAQ:RIOT) stock surged over 7% after announcing a significant 10-year Data Center Lease and Services Agreement with Advanced Micro Devices (NASDAQ:AMD). The deal is centered at Riot’s Rockdale Site in Texas.

The agreement is projected to generate approximately $311 million in contract revenue over the initial term. This figure could potentially increase to around $1 billion if AMD utilizes all available extension options.

Strategic Site Expansion

In a related move, Riot completed the acquisition of 200 acres of land at the Rockdale Site for $96 million. The purchase was uniquely funded by the sale of approximately 1,080 bitcoin from the company's holdings.

This acquisition expands Riot’s total owned land to over 1,100 acres and its power capacity to 1.7 GW across its Texas facilities, strengthening its infrastructure assets.

Market Implications

This partnership validates Riot's infrastructure capabilities and its strategic shift towards servicing high-performance computing and AI clients. For AMD, the deal secures scalable, high-density data center capacity essential for its AI and computing roadmap.

Summary

The agreement marks a pivotal step for Riot in diversifying its revenue streams beyond Bitcoin mining. It also underscores the growing demand for large-scale power and data center infrastructure driven by the AI industry, positioning Riot as a key supplier.

FAQ

Q: Why did Riot's stock increase?
A: The stock rose over 7% following the announcement of a major 10-year data center lease agreement with tech giant AMD, signaling significant new revenue.

Q: How is Riot funding its expansion?
A: Riot funded its recent $96 million land acquisition by selling approximately 1,080 bitcoin from its corporate balance sheet.

Source: Investing.com