Riot Blockchain Surges 7.7% in Pre-Market Trading After Signing Data Center Lease Agreement with AMD

Riot Platforms (NASDAQ: RIOT) shares surged 7.7% in pre-market trading on January 16, 2026, following the company's announcement of a 10-year Data Center Lease and Services Agreement with Advanced Micro Devices (NASDAQ: AMD). The deal will see Riot provide data center capacity at its Rockdale Site in Texas, with initial deployment set for 25 MW of IT load capacity, expandable to 200 MW. If all three five-year extension options are exercised, the contract could generate up to $1 billion in revenue.

The agreement is part of a broader strategic shift for Riot into the data center leasing market. The company has also acquired 200 acres of land at the Rockdale Site for $96 million, entirely funded by the sale of approximately 1,080 bitcoin from its balance sheet. This acquisition expands Riot's total power capacity to 1.7 gigawatts across its two Texas facilities, enhancing its position in the U.S. data center market.

AMD confirmed its interest in Riot's infrastructure, citing its capabilities in high-performance computing (HPC) and AI as a key reason for the partnership. Hasmukh Ranjan, AMD's Chief Information Officer, stated that Riot's power availability and infrastructure align with AMD's roadmap.

Why Did This Happen?

The lease agreement with AMD represents a validation of Riot's infrastructure, including its ability to provide scalable solutions for high-demand applications like AI and HPC. The deal is expected to generate $311 million in contract revenue over the initial 10-year term, with the potential to scale further through expansion options.

Riot's CEO, Jason Les, highlighted the strategic importance of the Rockdale Site acquisition, stating it solidifies the company's long-term presence in Milam County, Texas. This move is seen as critical for Riot's future growth in the data center leasing market.

The retrofitting of an existing building at the Rockdale Site is expected to cost $89.8 million, with delivery to AMD beginning in January 2026 and concluding in May 2026. This timeline underscores the company's commitment to rapid deployment in response to high-performance computing needs.

How Did Markets React?

Riot's stock price rose in pre-market trading following the announcement, reflecting investor optimism about the company's expansion into the data center leasing market. The move also aligns with broader trends in the AI and semiconductor sectors, where companies like AMD and TSMC are increasing capital expenditures in response to growing demand.

TSMC's recent earnings report, which showed record profits and a projected 35% increase in capital expenditures for 2026, has further bolstered sentiment in the AI and chipmaking sectors. This has led to gains in shares of companies like AMD and NVIDIA, which are also key beneficiaries of the AI boom.

What Are Analysts Watching Next?

Analysts and investors are now focused on how Riot will manage the financial implications of this expansion. Funding the land acquisition through the sale of bitcoin raises questions about liquidity and financial flexibility, especially in a volatile cryptocurrency market.

Additionally, the retrofitting costs and the projected $3.6 million per MW capital expenditure raise concerns about return on investment. The financial feasibility of the project will depend on Riot's ability to execute its plans efficiently and secure long-term revenue streams.

The broader semiconductor industry is also watching the deal for signs of further consolidation and partnership in the AI and HPC sectors. TSMC's recent increase in capex and its plans to expand in the U.S. suggest that demand for advanced computing infrastructure will remain strong, potentially benefiting companies like Riot.

In summary, the partnership with AMD is a significant milestone for Riot as it transitions into a more diversified business model. While the financials and execution risks remain key points of scrutiny, the deal is seen as a strategic move to capitalize on the growing demand for high-performance computing and AI infrastructure.