Riot Platforms Soars 16.11% as AMD Partnership, Texas Expansion Fuel AI Pivot

Riot Platforms (NASDAQ: RIOT) surged to its highest level so far this month, with an intraday gain of 17.02% as of 17/Jan. The stock closed up 16.11%, reflecting renewed investor confidence following strategic moves to diversify its business beyond Bitcoin mining.

The rally was driven by Riot’s 10-year data center lease agreement with AMD, a $96 million land acquisition in Texas, and a broader pivot to AI and high-performance computing (HPC) infrastructure. The AMD deal, involving 25 megawatts of initial capacity at Riot’s Rockdale facility, could generate $311 million in revenue over a decade, with potential for $1 billion if optional extensions are exercised. The Texas land purchase, funded by selling 1,080 Bitcoin, expands Riot’s power capacity to 1.7 gigawatts, positioning it to meet growing demand for AI infrastructure. These steps mark a strategic shift from volatile Bitcoin mining to stable, long-term data center services.

Riot’s pivot aligns with industry trends as Bitcoin miners repurpose facilities for AI/HPC workloads amid declining mining profitability. The AMD partnership validates Riot’s infrastructure capabilities, with CEO Jason Les highlighting the site’s power availability and scalability. While some analysts caution about valuations and industry commoditization risks, the stock’s performance underscores market recognition of Riot’s strategic agility. The company’s Bitcoin holdings—over $1.7 billion as of Dec. 31—further provide financial flexibility, enabling expansion without overleveraging. Riot’s Texas-based operations, bolstered by low-cost energy and existing connectivity, reinforce its competitive positioning in a sector poised for sustained growth.