Riot Platforms (RIOT) shares surged about 8% on Friday after Advanced Micro Devices (AMD) exercised an option to double its contracted capacity to 50 megawatts (MW) at Riot's Rockdale, Texas campus, with potential to expand to 150 MW. The deal could generate roughly $636 million over a 10-year term, according to the Q1 earnings transcript.
Riot also secured improved terms on its $200 million Bitcoin-backed credit facility with Coinbase, lowering the rate to 6.15% from 8.3%, releasing 1,544 Bitcoin in pledged collateral. This signals growing lender confidence in its expanding data center business.
“The market is pricing in a lower cost of capital as the expanded AMD deal drives lender confidence,” said Matthew Sigel, head of digital assets research at VanEck.
The move follows pressure from activist investor Starboard Value to accelerate Riot's transition from Bitcoin mining to AI infrastructure. The company is now among the last major miners to embrace AI hosting.
Riot reported total revenue of $167.2 million for Q1, up from $161.4 million a year earlier, boosted by $33.2 million in initial data center revenue. Bitcoin mining revenue fell to $111.9 million from $142.9 million due to lower Bitcoin prices and increased competition.
The firm also accelerated Bitcoin sales, selling 3,688 BTC during the quarter, ending March with 15,679 BTC and $282.5 million in cash. Riot shares are up about 147% over the past 12 months, while Bitcoin fell nearly 17%.