The cryptocurrency mining firm has made headlines by announcing the sale of 1,080 Bitcoin, valued at $96 million, to finance the acquisition of 200 acres of land in Rockdale, Texas. This strategic move follows the signing of a significant data center lease and service agreement with the major chip designer Advanced Micro Devices Inc. (AMD), aimed at enhancing its operational capabilities at the Rockdale location.
This lease agreement spans an initial period of 10 years and is expected to generate approximately $311 million in revenue for the firm. The contract includes three potential five-year extension options that could push total revenue to nearly $1 billion if fully exercised.
In light of this announcement, Riot Platforms Inc. experienced a 12% increase in share prices during Friday’s opening trade, while retail sentiment on Stocktwits surged into “extremely bullish” territory. Similarly, shares of AMD saw a more than 2% uptick, with sentiment around the company reflecting a strong positive outlook.
Riot’s CEO, Jason Les, expressed enthusiasm about the development, highlighting the significant progress made at the Rockdale site. The acquisition enhances Riot’s power portfolio to 1.7 gigawatts, positioning Rockdale as a prime data center development opportunity. The initial deployment for AMD will utilize Riot’s existing infrastructure at the site, with retrofitting of one of its facilities already underway, slated for completion and delivery to AMD by May 2026.
Historically, Riot has leased the Rockdale site long-term, but the recent Bitcoin sale allows the company to gain full ownership. The site is designed with a 700-megawatt interconnection to the grid, a dedicated water supply, and fiber connectivity, all of which will be converted to support data center tenants. Overall, Riot now controls over 1,100 acres and possesses a power capacity of 1.7 gigawatts across its two Texas facilities.
Year-to-date, Riot’s stock has surged by 47%, while AMD’s shares have increased by 9%, indicating a positive trajectory for both companies amidst a bullish market sentiment.
