- Riot bought 200 acres at its Rockdale, Texas site for US$96 million, funded by selling ~1,080 Bitcoin, converting the property to fee-simple ownership and expanding development flexibility.
- Riot signed a 10-year lease with AMD for 25 MW of IT capacity at Rockdale, with phased delivery from Jan–May 2026 and options to expand to 200 MW.
- The initial build requires ~US$89.8 million of retrofit capex (~US$3.6 million/MW) and is expected to generate about US$25 million of average annual NOI.
- The transactions advance Riot’s shift from bitcoin-only mining toward contracted AI/HPC data-center leasing across its ~1.7 GW Texas power footprint.
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Riot Platforms’ recent transactions—the fee simple acquisition of Rockdale land and the first major data center lease with AMD—represent a strategic inflection point for the company. Not only do these moves transition Riot’s Rockdale property from leased to owned status, but they also advance Riot’s shift toward high-performance computing (HPC) and AI infrastructure as part of its broader infrastructure diversification strategy.
Buying the 200-acre site for US$96 million via Bitcoin sales (≈1,080 BTC) removes ground-lease liabilities and secures Riot’s long-term operating flexibility. This lays the groundwork for full utilization of Rockdale’s 700 MW interconnection and infrastructure (including water and fiber) to support hyperscale tenants.
AMD’s lease is material both structurally and financially. Initial delivery of 25 MW over two phases (Jan–May 2026) positions Riot to begin cash flow from data center tenants in short order. The initial 10-year term generates roughly US$311 million, while full exercise of three five-year extensions plus expansion/right of first refusal options could yield up to ~US$1.0 billion and 200 MW capacity.
However, the economics are modest on a per-MW basis: retrofit CAPEX (~US$89.8 million) implies ≈US$3.6 million per MW for the initial phase, and NOI of ~US$25 million/year suggests ~US$1.0 million/MW/year over the initial 25 MW deployment. These metrics suggest Riot is trading returns per MW for speed to market and lower capital risk.
Strategically, these moves have multiple implications:
- Revenue diversification: leasing reduces Riot’s primary exposure to Bitcoin mining volatility, offering longer-term contracted income.
- Validation effect: AMD’s pedigree and engagement signal Riot’s ability to serve top-tier AI/HPC customers, enhancing Riot’s credibility with other potential tenants.
- Texas position strengthened: owning over 1,100 acres and 1.7 GW across Rockdale and Corsicana enables Riot to become a major supply in one of the most desirable U.S. data-center markets.
- Capital deployment risks: conversion of all available power, successful permitting, infrastructure upgrades, and securing further lease commitments will be essential to fully realize potential, especially under the current energy regulatory and cost environment.
Open questions include whether Riot can accelerate tenant acquisition beyond AMD, how extension and expansion options will be exercised under inflationary cost pressures, and whether electricity grid capacity and environmental regulations will pose constraints as Riot ramps up its data center asset base.
Supporting Notes
- Fee simple acquisition of 200 acres at Rockdale for US$96 million, previously under long-term ground lease; fully funded by sale of ~1,080 Bitcoin.
- Rockdale Site’s infrastructure: 700 MW grid interconnection, dedicated water supply, fiber connectivity. Riot intends to convert full 700 MW gross capacity for data center tenants.
- Lease with AMD: initial capacity 25 MW, delivered in phases from January 2026 to May 2026; with expansion options leading to total of up to 200 MW.
- Contract revenue: US$311 million for initial 10-year lease; up to ~US$1 billion if extensions/options are exercised.
- Retrofit CAPEX: US$89.8 million, representing ~US$3.6 million per MW for the initial deployment.
- Expected average NOI contribution: ~US$25 million per year under the modified gross lease structure with annual escalators.
- Riot’s overall extractable assets in Texas: ownership/management of over 1,100 acres and 1.7 GW of power capacity across Rockdale and Corsicana sites.
- AMD’s quotes affirming Riot’s infrastructure, power availability, and high-density solutions aligning with AI/HPC needs.