Riot Platforms (NASDAQ: RIOT) has accomplished the acquisition of 200 acres at its Rockdale, Texas, website and signed a long-term knowledge middle lease with Superior Micro Gadgets, Inc. (AMD), marking the primary main hyperscale tenant on the location.
The charge easy acquisition replaces Riot’s prior floor lease at Rockdale and was funded solely by way of the sale of roughly 1,080 bitcoin from the corporate’s steadiness sheet, totaling $96 million.
The mining firm stated the acquisition secures long-term operational management of the positioning and opens it for large-scale knowledge middle improvement.
The property features a 700 MW grid interconnection, devoted water provide, and fiber connectivity.
Shares of Riot’s inventory jumped roughly 13% following the announcement and are presently buying and selling at $18.70 a share.
Beneath the brand new lease, the corporate will ship 25 megawatts (MW) of vital IT load to AMD in two phases, beginning in January 2026 and finishing by Might 2026.
The preliminary time period runs 10 years and carries an anticipated contract worth of $311 million, with three five-year extensions probably bringing whole income to $1 billion.
AMD additionally holds an choice to increase by 75 MW and a proper of first refusal for a further 100 MW, which might convey its whole footprint at Rockdale to 200 MW. Riot estimates retrofit capital expenditures for the preliminary deployment at $89.8 million, or $3.6 million per MW, and expects the lease to contribute roughly $25 million in web working revenue per yr.
Riot’s improved land capabilities
Riot now owns greater than 1,100 acres and 1.7 gigawatts of absolutely permitted energy capability throughout its two Texas websites, Rockdale and Corsicana, roughly 100 miles aside.
The corporate positions its portfolio inside the “Texas Triangle,” protecting Austin, Dallas, Houston, and San Antonio, a serious U.S. knowledge middle hub.
Chief Government Jason Les stated the AMD settlement validates Riot’s infrastructure and improvement capabilities, and marks a turning level in its technique to repurpose bitcoin mining property for high-performance computing and AI workloads. The corporate stated started evaluating its websites for AI and HPC functions lower than a yr in the past.
The corporate joins different publicly traded bitcoin miners shifting towards knowledge middle leasing amid rising mining prices and community issue.
The corporate stated it plans to proceed changing energy at Rockdale and Corsicana for non-mining tenants, pursuing additional improvement and leasing alternatives.