Riot Platforms Signs $9.1B Data Center Deal, Partners with Anthropic

Major AI Deal for Riot Platforms

Riot Platforms has announced a significant shift in its business model by entering into a 20-year data center agreement valued at $9.1 billion. This groundbreaking deal, signed with the AI lab Anthropic, involves providing 191 megawatts (MW) of computing capacity at its Rockdale campus in Texas.

Details of the Agreement

This contract, which aims for full deployment by June 2028, will begin with an initial 96 MW delivery scheduled for December 2027. Riot’s agreement comes with an option for two additional five-year extensions, potentially raising the total projected revenue to $16.1 billion.

Funding and Construction Plans

To support the project, Riot has secured $573 million from Morgan Stanley, aimed at covering early construction costs. The total construction budget is estimated to range from $2.1 billion to $2.3 billion. Riot expects to finance 80% to 90% of the overall costs through debt, with an equity requirement between $210 million and $460 million yet to be finalized.

Riot’s Strategic Shift

This deal illustrates Riot’s commitment to diversifying its operations beyond Bitcoin mining. As noted in an SEC filing, the company initially described its client as a leading frontier AI lab, later identified as Anthropic by Bloomberg.

Impact on Riot’s Stock and Financials

Following the news of the deal, Riot’s shares surged by 25% in after-hours trading. The company produced 1,587 BTC in the second quarter, although its mining revenue decreased to $113.7 million due to falling Bitcoin prices and increased network competition. Riot held 11,380 BTC valued at around $666 million as of the end of June, indicating that funds from Bitcoin inventory sales may serve as a crucial resource for its AI initiatives.

Expansion at Rockdale Campus

Riot’s Rockdale facility, initially designed for Bitcoin mining, offers a total of 700 MW of energized power capacity, with infrastructure conducive to high-density computing repurposing. In addition to the new contract with Anthropic, Riot has secured contracts totaling 241 MW at Rockdale, which includes a prior agreement with AMD.

Looking Ahead

With expected revenue from contracted leases reaching approximately $9.8 billion, Riot is positioning itself not only as a player in the cryptocurrency sector but also as a major provider of AI computing infrastructure.