Riot Platforms (RIOT) surged roughly 8% on Friday after Advanced Micro Devices (AMD) exercised an option to double its contracted hosting capacity at Riot's Rockdale, Texas campus to 50 megawatts (MW), with a further upsizing option to 150MW. The expansion marks a decisive pivot from pure Bitcoin mining toward AI and high-performance computing infrastructure.
AMD Deal Could Yield $636 Million Over Ten Years
According to Riot's Q1 earnings call, AMD's exercised option raises the original 25MW agreement to 50MW. If fully built out to 150MW, the 10-year contract could generate roughly $636 million in total revenue. Riot management said the deal has strengthened lender confidence in its data center business.
Coinbase Credit Facility Refinanced at Lower Rate
Riot also announced improved terms on its $200 million Bitcoin-backed credit facility with Coinbase. The interest rate was cut from 8.3% to a fixed 6.15%, and 1,544 BTC previously pledged as collateral were released. Matthew Sigel, head of digital assets research at VanEck, noted: “The market is pricing in lower cost of capital, as the expanded AMD deal drives lender confidence.”
From Pure-Play Miner to AI Host
Riot was one of the last publicly listed bitcoin miners that had not diversified into hosting AI workloads. Activist investor Starboard had urged management to accelerate the shift. The company's shares have surged about 147% over the past 12 months, while Bitcoin fell nearly 17% in the same period.
Q1 Revenue Edges Up Despite Mining Decline
For the quarter ended March 31, Riot reported total revenue of $167.2 million, up from $161.4 million a year earlier, driven by $33.2 million in initial data center revenue. Bitcoin mining revenue fell to $111.9 million from $142.9 million, hurt by lower BTC prices and rising mining difficulty. Riot sold 3,688 BTC during Q1 and ended March with 15,679 BTC and $282.5 million in cash.