Riot Platforms Stock Surges on AMD Data Center Lease and Rockdale Land Acquisition

Riot Platforms (NASDAQ: RIOT) announced a 10-year data center lease agreement with Advanced Micro Devices (AMD) on its Rockdale, Texas site. The agreement includes an initial deployment of 25 MW of critical IT load capacity, with potential expansion to 200 MW. This marks a significant step in Riot's transition from Bitcoin mining to data center development.

The lease is expected to generate approximately $311 million in contract revenue over the initial term. If all three five-year extension options are exercised, the total contract value could reach up to $1 billion. The lease also includes expansion options for an additional 75 MW.

Riot funded the acquisition of the 200-acre Rockdale site by selling 1,080 Bitcoin. The site now offers 700 MW of grid-connected power and supports data center development. The move eliminates $130 million in lease obligations, strengthening Riot's balance sheet.

Why Did This Happen?

The partnership with AMD validates Riot's ability to provide high-density computing solutions. AMD's CIO noted that Riot's capabilities align with its AI and HPC infrastructure roadmap. This collaboration enables AMD to scale its operations in line with increasing demand for AI-driven computing.

Riot's CEO, Jason Les, emphasized the strategic significance of the Rockdale acquisition in expanding its data center power portfolio to 1.7 GW. He described the AMD lease as a pivotal milestone in Riot's development.

How Did Markets React?

Riot's shares surged over 7% in pre-market trading following the announcement. By market open, the stock had risen more than 9%. The positive sentiment reflects investor confidence in Riot's long-term positioning in the data center market.

AMD's stock also rose more than 1%, showing a bullish reaction from traders. Retail sentiment on platforms like Stocktwits was categorized as "extremely bullish" for both companies.

What Are Analysts Watching Next?

Piper Sandler maintains an Overweight rating on Riot with a $26 price target, representing 55% upside potential. The firm views Riot as a "sleeping giant" with the most attractive AI/HPC-compatible data center sites among Bitcoin miners.

Analysts are closely watching for potential announcements of further AI or HPC deals, which could drive additional outperformance. Riot's upcoming conference call on January 16, 2025, will be a key event for investors to gauge the company's strategic direction.

The company's Bitcoin production and sale strategy also remains under scrutiny, as its stock has shown volatility in response to Bitcoin price fluctuations. Riot sold 1,818 Bitcoin in December 2025, generating $161.6 million in net proceeds.

Riot now owns and manages over 1,100 acres of land and 1.7 GW of power capacity across two Texas facilities. The site's strategic location in the Texas Triangle positions it as a key player in the U.S. data center market.

The lease includes a modified gross structure with annual escalators, ensuring long-term revenue stability. Riot expects the agreement to contribute an average net operating income of $25 million per year.

The move signals Riot's intent to capitalize on the growing demand for data center infrastructure while leveraging its existing Bitcoin mining assets. The company's pivot to data center development aligns with broader industry trends toward AI and high-performance computing.

Market observers will continue to monitor Riot's ability to execute its expansion plans and secure additional high-profile tenants. The success of the AMD lease will serve as a benchmark for future deals.