Riot's stock rises after AMD boosts data center capacity to a potential 150 megawatts power
Riot shares jumped 8% as AMD expanded its data center capacity, signaling the miner's strategic pivot toward AI infrastructure.Summary
Riot Platforms (RIOT) saw its shares rise approximately 8% after Advanced Micro Devices (AMD) exercised an option to double its contracted capacity at Riot's Rockdale, Texas campus to 50 megawatts, with the potential to expand further to 150 megawatts. This agreement is expected to generate around $636 million over a 10-year term, marking a significant shift for Riot as it pivots from pure bitcoin mining toward AI and high-performance computing infrastructure.
Further strengthening investor confidence, Riot secured improved terms on a $200 million credit facility with Coinbase, reducing the interest rate from 8.3% to 6.15%. This financial improvement, coupled with the AMD expansion, suggests that lenders and the market are pricing in a lower cost of capital due to the company's diversified business model. The move follows pressure from activist investor Starboard to accelerate the transition into AI infrastructure.
Financially, Riot reported Q1 revenue of $167.2 million, bolstered by $33.2 million in initial data center revenue, which helped offset a decline in bitcoin mining revenue to $111.9 million. To support its operations and transition, the company has also accelerated the sale of its bitcoin holdings, ending March with 15,679 BTC and $282.5 million in cash.
(Source：CoinDesk)