Riot Platforms Soars 10.95% on Landmark AMD Data Center Deal: Is This the Catalyst for a New Bull Run?

Summary
• Riot Platforms (RIOT) surges 10.95% to $18.385, hitting an intraday high of $18.88
• Announces $96M land acquisition and 10-year $311M AMD data center lease
• Options frenzy: 26M shares traded, 2026-01-23 $18 call options see 157.5% price jump
• Tech sector buzzes as AI infrastructure demand accelerates, with AMD’s CIO hailing Riot’s capabilities

Riot Platforms is experiencing a seismic shift in its market narrative. The Bitcoin miner-turned-data-center developer has secured a transformative 10-year lease with AMD, unlocking $1B in potential revenue and validating its infrastructure in the AI/HPC space. With options volatility spiking and technical indicators flashing bullish signals, this move could mark a pivotal inflection point for the stock.

Land Acquisition and AMD Lease Drive 10.95% Surge
Riot’s 10.95% intraday rally stems from two blockbuster announcements: (1) a $96M fee simple acquisition of its Rockdale site, funded by selling 1,080 Bitcoin, and (2) a 10-year, $311M data center lease with AMD for 25 MW of capacity. The deal includes three 5-year extension options and expansion rights up to 200 MW, positioning Riot as a key player in the AI/HPC infrastructure boom. AMD’s CIO praised Riot’s power availability and high-density solutions, while CEO Jason Les emphasized the strategic validation of Riot’s Texas Triangle footprint. The retrofit capex of $89.8M ($3.6M/MW) and $25M annual NOI contribution further underscore the deal’s scalability and profitability.

IT Services Sector Volatile Amid AI Infrastructure Hype
The IT Services sector is in flux as AI infrastructure demand intensifies. While Riot’s 10.95% surge outpaces the sector, Amazon (AMZN) fell 0.15%, highlighting divergent investor sentiment. AMD’s involvement in the lease signals broader industry validation of data center infrastructure, but Amazon’s decline suggests caution over execution risks. Riot’s vertical integration of Bitcoin mining and data center development offers a unique edge, contrasting with pure-play cloud providers like Amazon.

Options and ETF Playbook: Capitalizing on Volatility and Momentum
• 200-day average: 13.325 (well below current price)
• RSI: 69.18 (approaching overbought territory)
• MACD: 0.446 (bullish divergence from signal line 0.028)
• Bollinger Bands: Price at 18.385 (above upper band 17.37)
• Gamma/Theta: High gamma (0.178–0.197) and theta (-0.01–-0.10) suggest strong short-term sensitivity and decay

Top Options Picks:
• RIOT20260123C18 (Call, $18 strike, 2026-01-23):
- IV: 70.62% (moderate)
- Leverage: 17.94%
- Delta: 0.6215 (moderate sensitivity)
- Theta: -0.1004 (aggressive decay)
- Gamma: 0.1969 (high sensitivity to price swings)
- Turnover: 265,615 (liquid)
- Payoff (5% upside): $0.945 per contract (max(0, 19.30 - 18))
- Why: High gamma and moderate delta position this call to capitalize on continued momentum, with liquidity ensuring smooth entry/exit.
• RIOT20260123P18.5 (Put, $18.5 strike, 2026-01-23):
- IV: 84.84% (elevated)
- Leverage: 19.86%
- Delta: -0.4766 (moderate downside protection)
- Theta: -0.0070 (slow decay)
- Gamma: 0.1716 (strong sensitivity)
- Turnover: 160,635 (liquid)
- Payoff (5% upside): $0.885 per contract (max(0, 18.5 - 19.30))
- Why: Acts as a hedge against volatility while retaining upside potential, ideal for risk-managed bullish bets.

Action: Aggressive bulls should target the $18 call for momentum plays, while the $18.5 put offers balanced exposure. Watch for a break above $18.88 (intraday high) to confirm the trend.

Backtest Riot Platforms Stock Performance
The backtest of Riot Games (RIOT) stock performance after a 11% intraday surge from 2022 to now shows mixed results. The 3-day win rate is 50%, the 10-day win rate is 54.03%, and the 30-day win rate is 53.60%. While the stock experienced a maximum return of 10.12% on January 15, 2026, the average returns over 3, 10, and 30 days are relatively modest at 0.81%, 2.63%, and 5.19%, respectively.

Riot’s AI Infrastructure Play: A High-Velocity Catalyst for 2026
Riot’s AMD deal and land acquisition have redefined its value proposition, transforming it from a Bitcoin miner to a critical AI/HPC infrastructure provider. With technicals aligned for a breakout and options volatility surging, the stock is primed for a sustained move. The IT sector’s mixed performance, led by Amazon’s -0.15% decline, underscores Riot’s unique positioning. Investors should monitor the $18.5 resistance level and AMD’s expansion options for further catalysts. Act now: Buy the $18 call for aggressive upside or the $18.5 put for a balanced approach. This is a high-velocity trade with clear technical and fundamental tailwinds.