Riot Platforms Lands $9.1 Billion AI Data Center Deal, Stock Surges 24% on Anthropic Lease

Why Is Riot Platforms Stock Soaring Tuesday? - Riot Platforms (NASDAQ:RIOT)

Riot Says Massive AI Data Center Deal Could Top $1 Billion In Annual Rent Revenue rose 14% year over year to $174.2 million, beating the $152.1 million analyst estimate. Riot reported an adjusted EBITDA loss of $69.7 million, compared with adjusted EBITDA of $495.3 million a year earlier. The results included more than $240 million in noncash charges, including a $75 million Bitcoin mark-to-market loss, $98 million in depreciation and amortization and a $28 million impairment related to construction assets at its Rockdale mining facility. Riot ended the quarter with 11,380 Bitcoin (CRYPTO: BTC/USD) valued at about $666 million and more than $1.2 billion in liquidity, including $549 million in cash. Data Center Business Gains Momentum Data center revenue reached $23.2 million and generated $6.5 million in gross profit during the quarter. Recurring operating lease revenue more than quadrupled from the first quarter to $4.9 million from $900,000. The business generated an 84% gross margin and about $4.1 million in gross profit. Tenant fit-out services generated $18.3 million in revenue and $2.4 million in gross profit, down from $32.2 million in revenue in the first quarter due to lower activity. Engineering revenue more than tripled year over year to $37.3 million, while gross margin climbed above 27% from about 7%. Engineering backlog reached $177.1 million, with roughly 90% tied to data centers. Riot also increased manufacturing capacity by 25% in 2026 as it works to convert its engineering backlog into revenue. Bitcoin Production Riot produced 1,587 Bitcoin during the second quarter, or an average of 17.4 Bitcoin per day. Deployed hash rate reached 44.4 EH/s, representing about 4.6% of the global network. Bitcoin mining revenue totaled $113.7 million, with average hash rate utilization of 87%. Riot generated $10 million in power curtailment credits, helping reduce net power costs to 3.6 cents per kilowatt-hour. Direct mining costs were $49,912 per Bitcoin. AI Data Center Deals Unlock Billions Riot has secured about $9.8 billion in contracted data center revenue after signing a 191-megawatt, 20-year lease with a leading frontier AI lab at its Rockdale campus, adding to its existing agreement with Advanced Micro Devices, Inc. (NASDAQ:AMD). The new lease is expected to generate $9.1 billion in revenue over its initial term. Revenue could reach $16.1 billion if the tenant exercises two five-year extension options. Riot expects the agreement to generate $7.3 billion to $8.2 billion in net operating income, or NOI, representing an 80% to 90% NOI margin. Together, the AMD and AI lab agreements cover 241 MW of contracted IT capacity at Rockdale. Riot expects the contracts to generate about $520 million in average annual revenue and $416 million to $462 million in annual NOI. Rockdale Development And Financing Riot expects to deliver the first 96 MW in December 2027, with the remaining capacity scheduled for June 2028. The company estimates development costs of $2.1 billion to $2.3 billion, or $11 million to $12 million per IT MW. To fund early development and long-lead equipment purchases, Riot secured a $573 million interim financing facility from Morgan Stanley (NYSE:MS) as it works toward permanent investment-grade financing. AMD Expands Data Center Capacity AMD also exercised an expansion option that doubled its contracted Rockdale capacity to 50 MW. Riot is building the additional 25 MW, with 10 MW expected online in November 2026 and the remaining 15 MW in May 2027. The full 50-MW AMD deployment is expected to generate about $63.6 million in average annual revenue and $51 million in annual NOI, supported by approximately $170.2 million in capital spending. At Corsicana, Riot signed a nonbinding letter of intent with a single prospective tenant for the entire campus. The site has 1 gigawatt of fully approved utility power and could support about 756 MW of critical IT capacity. During the earnings call, CEO Jason Les said Riot's Corsicana data center campus is under a non-binding letter of intent with a single tenant for the entire site. He said a lease covering the full campus could generate more than $1 billion in annual rent once fully deployed, though he cautioned that negotiations remain subject to uncertainty. Across its portfolio, roughly 1 GW of capacity is either contracted or involved in advanced commercial discussions, while total utility power capacity exceeds 2 GW. RIOT Price Action RIOT Price Action: Riot Platforms shares were up 22.68% at $23.80 during premarket trading on Tuesday, according to Benzinga Pro data. Photo via Shutterstock Market News and Data brought to you by Benzinga APIs To add Benzinga News as your preferred source on Google, click here.

Bernstein raises Riot Platforms stock price target on AI deals By Investing.com

Investing.com - Bernstein SocGen Group raised its price target on Riot Platforms stock (NASDAQ:RIOT) to $35 from $30 on Monday while maintaining an Outperform rating. The new target implies 71% upside from the current price of $20.47, though InvestingPro data suggests the stock may be overvalued at current levels relative to its Fair Value. The stock has surged 75% over the past year and is up 53% year-to-date, reflecting strong investor enthusiasm for the company's AI data center pivot. The firm cited Riot's $9.1 billion 20-year co-location lease covering 191 IT-megawatts at its Rockdale facility with a frontier AI lab reported by Bloomberg to be Anthropic. Riot also signed a non-binding letter of intent with a single tenant for its 1-gigawatt Corsicana site. Bernstein said Riot's 1.7-gigawatt power assets across the two sites are among the best for building AI data centers due to interconnect approval and urban proximity offering low latency. The announcements provide a clear path to monetizing these assets with strong revenue visibility. The firm updated its estimates to reflect the deals announced and Riot's recent financial results. The 191 IT-megawatt AI contract with the frontier AI lab was incorporated into the model. The increased price target reflects improved economics for Riot's 191 IT-megawatt deal compared to Bernstein's estimates in terms of revenue yield and margin conversion. Investors should note that InvestingPro identifies stock price movements as quite volatile, with a beta of 3.85. For deeper insights, InvestingPro offers 8 additional exclusive tips and comprehensive Pro Research Reports covering RIOT and 1,400+ other US equities. In other recent news, Riot Platforms reported a wider-than-expected loss for Q2 2026, with adjusted earnings per share at -$0.33, missing analysts' forecasts of -$0.2302. Revenue also fell short of expectations, coming in at $153.27 million against the anticipated $155.59 million. Despite these figures, the company noted significant progress in its data center operations, with 241 megawatts of contracted capacity, up from zero seven months prior. Riot Platforms announced a major 191-megawatt data center lease at its Rockdale facility with a leading AI lab, valued at approximately $9.1 billion over a 20-year initial term. Analysts from Compass Point, Needham, and H.C. Wainwright have responded positively to this development, reiterating or raising their price targets for the company. Compass Point maintained a Buy rating with a $29 target, while Needham increased its target to $30. H.C. Wainwright significantly raised its price target to $40, citing the lease's potential impact. Citizens also reiterated a Market Outperform rating, setting a $25 price target. These developments highlight a strong focus on Riot Platforms' expanding data center capabilities. This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

H.C. Wainwright raises Riot Platforms price target on AI contracts By Investing.com

Investing.com - H.C. Wainwright raised its price target on Riot Platforms stock (NASDAQ:RIOT) to $40 from $25 while maintaining a Buy rating. The stock has surged 74.6% over the past year and trades 53% higher year-to-date, though InvestingPro data suggests the shares are currently overvalued relative to its Fair Value estimate. The company carries a market capitalization of $7.32 billion. The firm cited a new 20-year, $9.1 billion lease for 191 megawatts at Riot's Rockdale facility with a leading frontier AI lab, reportedly Anthropic according to Bloomberg. The company also disclosed that its entire 1-gigawatt Corsicana site, supporting up to 756 megawatts of critical IT load, is under a non-binding letter of intent with one tenant and in advanced commercial and design discussions. Riot's AMD and Anthropic leases now cover 241 megawatts and approximately $9.8 billion of contracted revenue at Rockdale, representing about $520 million of average annual revenue and $416 million to $462 million of estimated average annual net operating income once fully delivered. This projected revenue stream comes as the company posted 42.4% revenue growth over the last twelve months, though it remains unprofitable with negative earnings per share of $2.52. The company has 25 megawatts online for AMD, with the remaining 25 megawatts scheduled for full delivery by May 2027, while the Anthropic deployment is scheduled to be delivered in two phases -- 96 megawatts in December 2027 and the remaining 95 megawatts by June 2028. The revised price target reflects a sum-of-the-parts valuation methodology, assuming $18 per share for Riot's three operating businesses, $2 per share for the market value of Riot's bitcoin stack of 11,380 bitcoin, and a risk-weighted contribution of $20 per share for the company's near-term pipeline conversions. H.C. Wainwright identified risks including volatility in bitcoin prices, faster than expected increase in network hash rate, construction delays at the Rockdale facility, and shareholder dilution from secondary equity sales. InvestingPro Tips highlight that the stock exhibits highly volatile price movements, with a beta of 3.85, and the company is quickly burning through cash. For investors seeking deeper insights, InvestingPro offers a comprehensive Pro Research Report on RIOT, one of 1,400+ US equities covered with expert analysis and actionable intelligence. In other recent news, Riot Platforms has announced a significant 20-year lease agreement with a leading AI lab for 191 megawatts of IT capacity at its Rockdale facility. This contract is valued at approximately $9.1 billion over the initial term, with a projected $1.8 million per megawatt in the first year and about $2.4 million per megawatt over the entire lease period. Despite posting a wider-than-expected loss for Q2 2026, with an adjusted EPS of -$0.33 compared to the forecasted -$0.2302, Riot Platforms is seeing progress in its data center ventures. The company reported revenue of $153.27 million, slightly below the expected $155.59 million. Riot Platforms now boasts 241 megawatts of contracted data center capacity, a notable increase from zero contracted revenue just seven months ago. Analyst firm Citizens has reiterated a Market Outperform rating for Riot Platforms, maintaining a $25.00 price target following the lease deal announcement. These developments highlight Riot Platforms' strategic shift towards expanding its data center operations. This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Riot Platforms stock extends gains to over 20% in aftermarket trade, here's why By Investing.com

Investing.com -- Riot Platforms stock surged 24.3% in after-hours trading to reach $24.12, extending gains after Bloomberg reported that a recently disclosed long-term AI data center lease was with Anthropic. Riot also delivered a significant Q2 2026 revenue beat, with second-quarter revenue at $174.2 million, well ahead of analyst consensus estimates in the $152-$155 million range and up 14% from the same period a year ago. But a key point of support for the stock was the announcement of a 20-year lease agreement with a leading frontier AI lab for 191 megawatts of critical IT capacity at Riot's Rockdale, Texas facility. Bloomberg reported that the AI lab in question was Anthropic. The lease is expected to generate approximately $9.1 billion in total initial contract revenue through June 2048. Two five-year extension options could push the total contract value to approximately $16.1 billion. CEO Jason Les described the deal as "a defining moment in our evolution into a leading developer of large-scale data centers," underscoring the company's deliberate shift from Bitcoin miner to contracted digital infrastructure landlord. The move came in stark contrast to the broader crypto-mining sector, which had been under pressure during regular trading hours on August 10 as Bitcoin prices softened and Strategy's Bitcoin sales weighed on the group. Riot's key peers -- MARA Holdings and CleanSpark -- had each fallen sharply in that session, and the major U.S. indices (S&P 500, Dow Jones, and Nasdaq) all ended essentially flat on August 11. This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Why is Riot Platforms stock surging today? By Investing.com

Investing.com -- Riot Platforms stock surged nearly 9.8% in after-hours trading to reach $21.30 after the company unveiled a landmark 20-year data center lease agreement with an unnamed frontier AI lab for 191 megawatts of critical IT capacity at its Rockdale, Texas campus, a deal expected to generate approximately $9.1 billion in total initial contract revenue through June 2048, with two five-year extension options that could lift total value to approximately $16.1 billion. Simultaneously, the company reported Q2 2026 revenue of $174.2 million, up 14% from the year-ago period and well ahead of the roughly $148.7 million that analysts had anticipated heading into today's earnings call. The scale of the lease deal carries particular weight for investor sentiment, as it validates Riot's strategic pivot away from pure Bitcoin mining toward becoming a contracted data center landlord serving the AI infrastructure boom. Clear Street had previously raised its price target on RIOT to $26, citing growing momentum in the company's high-performance computing and data center segment, and today's announcement substantially strengthens that bull case; the two five-year extension options on the new lease could push the total contract value to approximately $16.1 billion, a figure that dwarfs the company's current market capitalization. The broader market offered little directional help today, with the S&P 500 and Nasdaq both essentially flat and the Dow Jones edging marginally lower. No major U.S. macro data was released today; the key inflation prints -- CPI and PPI for July -- are scheduled for later this week and are being closely watched by investors ahead of the Federal Reserve's September policy meeting, where the central bank is expected to hold rates steady. The combination of a revenue beat and a multi-billion-dollar lease that cements Riot's transformation into an AI infrastructure company proved to be a decisive catalyst, lifting the stock well above its regular-session high of $20.46 and pushing it toward the upper end of its recent trading range, though still well below its 52-week high of $30.32. This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.