Riot Platforms signs $9.8 billion AI data center lease agreement to accelerate computing infrastructure transformation

Comparatively, Bitcoin mining company Riot Platforms announced that it has signed AI data center lease agreements with two major tech clients, covering 241 MW of critical IT capacity, which is expected to bring in about 9.8 billion US dollars in long-term contract revenue, and drive the company's transformation from a business model centered on Bitcoin mining to a large-scale AI data center developer.

The largest agreement was a 191MW build-to-suit (build-to-suit) data center lease agreement signed by Riot with a leading AI lab in Rockdale, Texas, USA. The agreement has an initial term of 20 years and will last until June 2048, and is expected to generate approximately $9.1 billion in contract revenue. The potential value of the agreement will expand further if the customer continues to renew the contract after the end of the underlying term. The contract includes two 5-year renewal options, and if fully executed, the total contract value is expected to increase to approximately $161 billion.

Riot said the 191MW project is expected to contribute $7.3 billion to $8.2 billion in cumulative net operating income (NOI) during the initial lease period, contributing an average of around $365 million to $411 million per year. The first 96 MW capacity of the project is expected to be delivered in December 2027, and the entire 191 MW is scheduled to be deployed in June 2028.

Meanwhile, revenue from traditional Bitcoin mining operations has declined. Bitcoin mining revenue for the second quarter fell from $1409 million to $1.137 million, while engineering revenue rose from $10.6 million to $37.3 million, and the company's total quarterly revenue increased 14% year over year to $174.2 million.

By the end of the second quarter, Riot had more than $1.2 billion in liquid assets, including 11,380 bitcoins worth approximately $666 million, and $548.9 million in cash (of which $77.5 million was restricted cash) to fund the expansion of its AI infrastructure. (pulse 2)

This article is sponsored by GENG, Build Your Fortune on GENG (https://geng.one)