Bitcoin Mining Stocks Rally as Riot Secures AMD Deal, Galaxy Targets Expansion in Texas

Riot Platforms (NASDAQ: RIOT) surged more than 11% on Friday following the announcement of a long-term data center lease agreement with Advanced Micro Devices (NASDAQ: AMD). The deal could be worth up to $1 billion if all extension options are exercised.

Riot sold 1,080 Bitcoin to fund a $96 million land acquisition at its Rockdale, Texas, site. This acquisition gives Riot fee-simple ownership of the land, strengthening its position in the Texas data center market.

AMD will initially lease 25 MW of IT load capacity at the Rockdale site, with potential expansion up to 200 MW. The initial 10-year term is expected to generate $311 million in contract revenue.

Why Did This Happen?

The partnership with AMD marks a pivotal shift for Riot. The company, traditionally a Bitcoin miner, is now pivoting toward high-performance computing and AI infrastructure. This change was partly driven by activist investor Starboard Value, which took a stake in Riot and pushed for strategic reallocation of assets.

The Rockdale site offers 700 MW of power capacity, fiber connectivity, and a dedicated water supply. Riot plans to convert the full capacity for data center use, aligning with the growing demand for AI computing power.

What Are Analysts Watching Next?

Analysts at BTIG reiterated a Buy rating for Riot, with a $28.00 price target. The firm highlighted the potential for additional revenue from AMD’s expansion options, which could reach $2.2 billion over 10 years.

In a separate development, Galaxy Digital (NASDAQ: GLXY) announced that it received approval for an 830 MW expansion at its Helios data center in Texas. The expansion brings the site's total power capacity to over 1.6 GW.

The approval from ERCOT was a major step for Galaxy, which is already in a 15-year, $15 billion deal with CoreWeave to host GPU clusters at the Helios site. Galaxy CEO Mike Novogratz said the company is now in early negotiations with other hyperscalers for the additional capacity.

Morgan Stanley raised its price target on Galaxy to $43, citing the expansion as a validation of the company's infrastructure capabilities. The firm also adjusted the probability of energization for the Helios IV site to 100%.

How Did Markets React?

Riot's stock climbed more than 11% in pre-market trading, while Galaxy's shares rose 4% following the ERCOT approval. Both companies are seen as key players in the growing data center infrastructure sector.

Investor interest in data center real estate is rising as AI computing demand surges. Companies like Riot and Galaxy are repositioning themselves to capitalize on this trend by leveraging existing power and infrastructure assets.

Analysts are also watching how Bitcoin mining companies adapt to changing economic conditions. With rising operational costs and competition for power resources, diversification into AI and HPC is becoming a strategic imperative.

The broader market for data center stocks is seeing increased activity as companies like CleanSpark and CoreWeave also expand their AI-focused operations. This trend is expected to continue in 2026 as more firms seek to secure power and infrastructure for high-density computing.

Riot's retrofit costs for the Rockdale site are estimated at $89.8 million, with an expected average net operating income of $25 million per year once operational. The project is scheduled for delivery in phases, beginning in January 2026.