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Riot leases 191 MW of Texas mining capacity to AI tenant in 20-year deal
The contract is expected to generate about $457 million per year, four times the revenue Riot’s bitcoin mining produced in Q2, and could reach $16.1 billion with extension options.
Riot Platforms leased 191 megawatts of computing capacity at its Rockdale, Texas bitcoin mining campus to an unnamed artificial intelligence company under a 20-year agreement, according to an exhibit filed with the U.S. Securities and Exchange Commission on Aug. 10. The lease is projected to generate roughly $9.1 billion in revenue over the base term through June 2048, with two five-year extension options that could increase the total potential value to about $16.1 billion if exercised. Riot identified the tenant only as one of the world’s leading frontier AI labs. Riot expects the contract to average $457 million of revenue a year, about four times the $113.7 million its bitcoin mining business produced in the second quarter. The filing ties the shift to mining economics, saying its cost to mine one bitcoin excluding depreciation was $49,912 in Q2 against a production value of $71,667 per coin, and including depreciation the cost rose to $90,631, or 126.5% of the coin’s value. Riot said the lease does not start paying for more than a year, with delivery of the first 96 IT megawatts in December 2027 and the full 191 by June 2028 using existing, fully approved grid interconnection. The buildout is expected to require $2.1 billion to $2.3 billion of capital expenditures, funded in part by a $573 million interim financing facility from Morgan Stanley while an investment-grade credit backstop is finalized, and Riot’s plan to keep selling bitcoin inventory as the primary equity funding source.
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