TLDR
- Riot Platforms shares rose 16.05% to $19.23 following announcements of a major AMD partnership and Texas land acquisition
- The Bitcoin miner bought 200 acres in Rockdale for $96 million, paying with 1,080 Bitcoin from its treasury
- AMD signed a 10-year lease for up to 200 megawatts of data center capacity worth $311 million
- Contract extensions could push the total AMD deal value to approximately $1 billion
- Piper Sandler maintained its Overweight rating with a $26 price target on the stock
Riot Platforms ended Friday at $19.23 per share. The 16.05% gain came after the company announced two related deals in Texas.
The Bitcoin mining operator purchased 200 acres of land in Rockdale. The company already operated on this property but didn’t own it. Riot paid $96 million using 1,080 Bitcoin from its holdings of 18,005 coins.
With ownership secured, Riot immediately inked a deal with AMD. The 10-year data center lease covers critical IT infrastructure needs for the chip manufacturer.
AMD Partnership Details
The initial deployment starts at 25 megawatts of capacity. AMD can scale this up to 200 megawatts by May 2026 under the current terms.
The base contract is valued at $311 million. Three five-year extension options are built into the agreement. If AMD exercises every option, the deal could reach $1 billion in total value.
AMD also received right of first refusal on another 100 megawatts of capacity. This could bring AMD’s total commitment to 200 megawatts of critical IT infrastructure at the Rockdale location.
Trading volume reflected strong investor interest. Riot saw 53.4 million shares traded on Friday, up 172% from its three-month average of 19.7 million.
Analyst Take and Market Context
Piper Sandler kept its Overweight rating intact with a $26 price target. The firm called the AMD agreement a positive first step toward filling Riot’s full 1.2 gigawatts of capacity across both Rockdale and Corsicana sites.
The research firm estimates full conversion to AI and high-performance computing data centers could add over $30 per share in value. This calculation is based on management’s projected net operating income run rates.
Other Bitcoin miners posted gains on Friday too. Mara Holdings climbed 6.57% while Hut 8 added 4.14%. The moves came as investors digested recent activity in the Bitcoin mining and data center space.
The broader market barely budged. The S&P 500 slipped 0.07% while the Nasdaq dropped 0.06%.
Company Positioning
Riot repositioned as a Bitcoin miner in 2016. The stock has gained 612% since that strategic shift. Year-to-date, shares are up 30.78%.
The company now holds 16,925 Bitcoin after using some for the land purchase. Riot avoided diluting shareholders or adding debt by paying with digital assets.
Piper Sandler believes the AMD deal establishes Riot as a legitimate option for hyperscaler tenants looking for data center capacity. The firm sees this as validation of Riot’s evolving business model beyond pure cryptocurrency mining.
Riot’s market cap stands at $7.2 billion. The stock has traded between $6.19 and $23.93 over the past 52 weeks. AMD shares currently trade at $232.50 with a market cap near $379 billion.
The Rockdale site sits near Austin, Texas, providing access to power infrastructure and proximity to tech hubs. Riot’s Corsicana facility offers similar development opportunities for future data center projects.
Get 3 Free Stock Ebooks
Discover top-performing stocks in AI, Crypto, and Technology with expert analysis.
- Top 10 AI Stocks - Leading AI companies
- Top 10 Crypto Stocks - Blockchain leaders
- Top 10 Tech Stocks - Tech giants
