Core Viewpoint - Riot Platforms is conducting a business update call to provide insights into its current operations and future outlook [2]. Group 1 - The call is being led by Joshua Kane, Vice President of Investor Relations, indicating a structured approach to investor communication [2]. - Participants are currently in listen-only mode, suggesting a focus on the management's prepared remarks before engaging in a Q&A session [2]. Group 2 - The presentation may include forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995, highlighting the company's intent to discuss future events and trends [3]. - Forward-looking statements are based on management's current expectations and are subject to risks and uncertainties, which could lead to actual results differing significantly from those projected [3].

Core Insights - Riot Platforms is expanding its operations by entering a significant partnership with AMD, marking a shift towards artificial intelligence infrastructure in response to increasing AI demand [1][2] - The company is part of a trend among Bitcoin miners who are repurposing their resources to support AI and high-performance computing due to tighter margins and volatile energy costs [2][3] Partnership and Financials - Riot signed a long-term Data Center Lease and Services Agreement with AMD, which is expected to generate approximately $311 million in revenue, with the potential total contract value reaching $1 billion over 10 years [4] - The initial lease covers 25 megawatts (MW) of critical IT load, with phased delivery scheduled from January 2026 to May 2026 [4] Land Acquisition and Capacity - Riot acquired land at its Rockdale site in Texas for $96 million, funded by selling approximately 1,080 BTC [5] - The company now owns and manages over 1,100 acres and 1.7 gigawatts (GW) of power capacity across two Texas facilities, enhancing its position in the Texas Triangle [6]

Core Insights - Riot Platforms' shares increased by nearly 13.5% following the announcement of land acquisition and a lease agreement with AMD, indicating positive market reception to the company's strategic shift towards data centers [1][5]. Group 1: Company Developments - Riot Platforms plans to acquire 200 acres of land at its Rockdale data center site for $96 million, funded by the sale of 1,080 Bitcoins [3][8]. - The Rockdale site is North America's largest Bitcoin mining facility by developed capacity, featuring seven buildings with various cooling technologies [3]. - The company will lease 25 megawatts (MW) of IT load capacity to AMD, with potential expansion up to 200 MW, enhancing its data center power portfolio to 1.7 gigawatts [4]. Group 2: Industry Trends - Bitcoin miners are increasingly transitioning to data centers for artificial intelligence applications due to the high energy demands of mining and the saturation of Bitcoin supply [2][8]. - The data center industry is expected to grow significantly, driven by the rising demand for AI capabilities [2]. Group 3: Market Considerations - Despite the positive developments, Riot's stock trades at 54 times earnings, raising concerns about the sustainability and commoditization of the data center business [5][6]. - The future of AI and its impact on data centers is uncertain, suggesting a cautious approach for investors [6].

Riot Platforms Business Update Summary Company Overview - **Company**: Riot Platforms (NasdaqCM:RIOT) - **Date of Call**: January 16, 2026 Key Achievements and Developments 1. **Acquisition of Rockdale Site**: - Completed the acquisition of 200 acres at Rockdale for $96 million, funded by selling approximately 1,080 Bitcoin, transitioning from a ground lease to full ownership [4][7][10] - This acquisition allows Riot to develop data centers on-site, unlocking 700 megawatts of fully approved power capacity [4][6][10] 2. **Lease Agreement with AMD**: - Announced a 10-year lease with AMD for 25 megawatts of critical IT load, with options for expansion [5][11] - The initial deployment will be delivered in two phases: 5 megawatts by the end of January 2026 and 20 megawatts by May 2026 [11][15] - Total contract value for the initial deployment is $311 million, expected to generate average annual net operating income of approximately $25 million [12][25] 3. **Strategic Importance of Transactions**: - The acquisition and lease validate Rockdale as a premier data center site and establish Riot as a credible operator for technology organizations [5][28] - Eliminating future rental payments of approximately $130 million enhances the operating cost profile and returns on future developments [10][28] Financial Strategy and Capital Allocation 1. **Capital Allocation Approach**: - Riot employs a disciplined three-phase capital allocation strategy: initial development funding, tenant acquisition and project financing, and capital recycling [19][22] - Plans to fund development projects through Bitcoin sales, maintaining substantial exposure to Bitcoin while financing growth initiatives [20][21] 2. **Liquidity Position**: - As of Q3 2025, Riot holds over $2 billion in total liquidity, including approximately $400 million in cash and nearly 20,000 Bitcoin [19][20] 3. **Financing Strategy**: - Plans to utilize non-recourse project-level debt financing for data center CapEx costs, enhancing returns on invested capital while preserving balance sheet liquidity [22][23] Market Position and Future Outlook 1. **Growth Potential**: - The Rockdale site has the potential to support 1.2 gigawatts of critical IT load, which could generate annualized NOI of $1.6-$2.1 billion from long-term contracted leases [30][31] - AMD holds expansion options for an additional 75 megawatts and a right of first refusal for another 100 megawatts, potentially increasing their footprint to 200 megawatts [12][30] 2. **Competitive Advantages**: - Riot's expertise in Bitcoin mining allows for immediate monetization of power capacity while developing data center infrastructure, providing a unique advantage over traditional developers [32][31] - The credibility of Riot's data center team and the speed of execution are highlighted as key factors in securing the AMD lease [25][26] Conclusion - The announcements reflect Riot's focus on efficient capital allocation and financial discipline, positioning the company for significant growth in the data center market while maximizing shareholder value [28][29]

Core Viewpoint - Riot Platforms has entered into a significant lease agreement with AMD to host AI computers, marking a strategic move to enhance its data center capabilities and revenue potential [1][3]. Group 1: Lease Agreement and Financials - Riot has signed a lease agreement with AMD for 25 MW of capacity, valued at $311 million over a 10-year period [1]. - If AMD exercises its options for three five-year extensions, the total value of the deal could reach approximately $1 billion [3]. - Riot anticipates that the initial deployment will generate around $25 million in annual net operating income [3]. Group 2: Property Acquisition and Infrastructure - Riot purchased a 200-acre property for its Rockdale data center for $96 million, securing full ownership of the land and power rights [2]. - The property includes a 700 MW interconnection to the power grid, which Riot plans to utilize for data center tenants over time [2][5]. - Riot estimates that the capital expenditures for retrofitting an existing building at the Rockdale site to meet AMD's specifications will be $89.8 million, or $3.6 million per MW [4]. Group 3: Operational Plans and Capacity - Riot plans to start delivering the contracted capacity in January 2026, with a target completion date of May 2026 [4]. - The company currently owns 1.7 gigawatts of power capacity across its Rockdale and Corsicana facilities [5]. - Riot intends to convert the full 700 MW of gross power capacity at Rockdale for data center tenants over time [5].

Rockdale Site Acquisition - Riot acquired 200 acres of land in Rockdale for $96 million, funded by selling 1,080 bitcoin[8, 10] - The acquisition unlocks the ability to fully utilize Rockdale's 700 MW power capacity for data center leasing[10, 11] - Eliminating the ground lease saves approximately $130 million[8, 11] AMD Data Center Lease - Riot executed a data center lease with AMD for an initial capacity of 25 MW, expandable to 200 MW[8, 13] - The contract value is $311 million over the initial 10-year term[8, 13] - The initial 25 MW will be delivered in two phases, starting in January 2026 and completed in May 2026[8, 13, 15] - The lease is expected to generate $25 million in annual NOI[13] Financial Position and Funding - Riot has $406 million in total cash and 18,005 bitcoin valued at $1.7 billion as of late 2025/early 2026[19] - The company plans to fund data center initiatives primarily through the sale of bitcoin[21] - An illustrative 3,134 BTC held on the balance sheet are required to be sold for project equity financing for current developments[21] Data Center Growth and Valuation - Riot is building a 1 GW+ critical IT leasing pipeline[25, 26] - The total portfolio NOI range is estimated at $1.6-2.1 billion[27] - Riot currently trades among the lowest EV/MW multiples in the sector[31]

Core Insights - Riot Platforms has completed the acquisition of full ownership of a 200-acre site in Rockdale, Texas, and signed a data center lease agreement with AMD [1] Group 1: Acquisition Details - The acquisition was financed by selling approximately 1,080 BTC, totaling around $96 million [1] - The lease agreement with AMD includes an initial capacity of 25 MW for a duration of 10 years, with expected delivery between January and May 2026 [1] Group 2: Financial Implications - The contract value with AMD is approximately $311 million, with potential expansion and extension options that could increase the total capacity to 200 MW and the total value to around $1 billion [1]

Core Viewpoint - Riot Platforms' stock price increased over 7% to $17.75 following the announcement of a data center leasing agreement with AMD, which is expected to generate significant revenue [1] Group 1: Company Developments - Riot Platforms signed a data center leasing agreement with AMD in Rockdale, which includes the deployment of an initial capacity of 25 megawatts [1] - The agreement has the potential to expand up to 200 megawatts, indicating significant growth opportunities for the company [1] - The deal is projected to bring in $311 million in contract revenue, highlighting the financial impact of this partnership [1]

Group 1 - Riot Platforms' stock price increased over 7% to $17.75 in pre-market trading [1] - The company signed a data center leasing agreement with AMD in Rockdale, which includes the deployment of an initial capacity of 25 megawatts [1] - The agreement has the potential to expand up to 200 megawatts and is expected to generate $311 million in contract revenue [1]

Core Insights - Riot Platforms, Inc. has made significant advancements in its data center business, particularly through a partnership with AMD, which validates its infrastructure and development capabilities [1][2] - The company has acquired 200 acres of land in Milam County, Texas, for $96 million, enhancing its operational stability and growth potential [3][4] - Riot now manages over 1,100 acres and 1.7 gigawatts of power capacity across its Texas facilities, solidifying its position in the Texas Triangle [4] Data Center Development - The acquisition of the Rockdale Site allows for immediate data center development and supports the lease agreement with AMD [3][6] - Riot's data center portfolio now includes 1.7 GW of fully approved power capacity, positioning it as a leader in the U.S. data center market [6] - The initial deployment for AMD will start in January 2026 and is expected to be completed by May 2026, with a total potential capacity of 200 MW [6][7] Financial Implications - The Data Center Lease with AMD has an initial term of 10 years, expected to generate approximately $311 million in contract revenue, with potential total revenue reaching around $1 billion if all extensions are exercised [7][13] - The retrofit capital expenditure for the initial deployment is estimated at $89.8 million, translating to $3.6 million per MW of critical IT load capacity [13] - Expected average net operating income contribution is projected to be $25 million per year [13]