Yahoo Finance·2026-01-16 15:24Core 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].