Riot Platforms drew fresh market attention after progress in its AMD partnership helped lift the company’s shares 8%. In its first-quarter 2024 financial report, Riot said AMD had doubled contracted capacity under the new agreement to 50 megawatts, with potential to expand that figure to 150 megawatts. The filing estimated the partnership could bring in $636 million in revenue over the next 10 years, a figure that highlights how quickly Riot is building businesses outside Bitcoin mining.
AMD agreement puts Riot’s data center push in focus
The expanded contract adds weight to Riot’s changing business mix. The company has long been identified with Bitcoin mining, but it is now allocating more attention to high-performance artificial intelligence infrastructure and data center operations. Its data center in Castle Rock, Colorado, generated $33.2 million in revenue in the first quarter. Total revenue reached $167.2 million, up from the same period a year earlier. Bitcoin mining revenue, by contrast, fell to $111.9 million as lower Bitcoin prices and tougher mining competition pressured results.
Coinbase loan revision cuts borrowing cost
Riot also changed terms on its $200 million bitcoin-backed loan with Coinbase. The interest rate was reduced from 8.3% to a fixed 6.15%, and 1,544 BTC that had previously been pledged as collateral were released. The report cited Matthew Sigel as saying Riot shares were trading at a premium, with part of that support tied to cost savings from the expanding AMD arrangement and stronger confidence from both investors and lenders.
Shift away from a mining-only model is becoming clearer
Riot is now seen as one of the few companies moving from Bitcoin mining toward high-performance AI infrastructure. Management had previously held to a mining-only approach, but investment groups including Starboard have recently pressed for faster expansion into new lines of business. Market reaction to the company’s efforts to enlarge data center capacity has been positive. Over the past year, Riot shares gained 147%, while Bitcoin fell 17% over the same period.
That change is also visible in treasury management. According to Bitcoin Treasuries, Riot sold 3,688 BTC in the first quarter of 2024. At the end of March, the company held 15,679 BTC in reserves along with $282.5 million in cash. The market is now watching not only Riot’s mining output, but also how it allocates capital and capacity between its legacy mining business and AI-linked data center services.