Riot Platforms (RIOT) Stock: Surges 14% as $28B Frontier AI Deal Lifts Contracted Revenue to $38B

TLDR

Riot stock jumps 14.84% as a $28B AI lease lifts contracted revenue to $38B.
Riot secures a 15-year AI lease covering 910 MW at its Corsicana campus.
Riot’s data center contracts reach 1,151 MW, with $38B in future revenue.
Riot reports $181.4M in Q3 revenue as engineering growth offsets mining declines.
Riot sells 20,264 Bitcoin for $1.5B to support its expanding data center business.

Riot Platforms (RIOT) shares climbed 14.84% to $16.10, adding $2.08 during morning trading. The rally followed a major expansion of the company’s data center business through a $28 billion artificial intelligence lease. Additionally, Riot’s total contracted data center revenue reached approximately $38 billion, strengthening its position in large-scale digital infrastructure.

Riot Platforms, Inc., RIOT

Riot Secures $28 Billion Frontier AI Lease at Corsicana
Riot signed a 15-year triple-net powered land lease with a leading Frontier AI Lab. The agreement covers its entire Corsicana campus in Texas, representing 910 megawatts of critical IT capacity. Moreover, the leased property spans a contiguous 332-acre parcel.
The agreement carries approximately $28 billion in total contract value over its initial term. Riot expects average annual rent of approximately $1.8 billion, including contractual escalators. Furthermore, the value could reach approximately $54 billion if the tenant exercises both five-year extension options.
The lease carries an estimated net operating income margin of 99%. Consequently, Riot expects approximately $1.8 billion in average annual net operating income during the initial term. The company estimates capital costs at $6 million per IT megawatt, totaling approximately $5.5 billion.
Riot will contribute $2 million per IT megawatt toward site work and electrical infrastructure. Meanwhile, the tenant will reimburse the remaining $4 million per megawatt through phased payments. Riot expects these reimbursements to use non-recourse project financing or direct tenant funding.
The delivery schedule covers three phases across 2027 and 2028. Riot plans to deliver 400 MW in September 2027, followed by 200 MW in January 2028. The remaining 310 MW will arrive in July 2028, with rent starting within 60 days of each delivery.
Under the triple-net structure, Riot will provide land, power infrastructure, and completed powered pads. However, the tenant will procure, install, own, and operate its computing equipment. The tenant will also cover substantially all operating expenses, including electricity costs.
Riot’s Contracted Data Center Revenue Reaches $38 Billion
The Corsicana agreement expands Riot’s existing data center commitments alongside its AMD contract. Additionally, an earlier lease with the same Frontier AI Lab at Rockdale contributes to the combined capacity. Together, these agreements cover 1,151 MW of critical IT capacity.
Riot now reports approximately $38 billion in long-term contracted data center revenue. The company expects more than $2 billion in average annual net operating income at full deployment. Meanwhile, management plans to allocate capital between infrastructure development and potential shareholder returns.
The latest agreement also reduces Riot’s development capital requirements compared with conventional construction. Its estimated capital intensity represents approximately half the cost of a typical Tier 3 build. Therefore, the company expects an unlevered yield on cost of approximately 33%.
Third Quarter Results Show Mixed Revenue Performance
Riot reported third-quarter 2026 revenue of $181.4 million, compared with $180.2 million during the previous year. This represented a 1% annual increase as data center and engineering growth offset weaker mining revenue. However, lower average Bitcoin prices affected the company’s mining operations.
Data center revenue reached $18.4 million during the quarter. This included $7.7 million in base rent, $0.5 million in variable lease revenue, and $10.2 million in tenant fit-out reimbursements. The results reflected the first full quarter of stabilized operations across the 25 MW delivered to AMD.
Bitcoin mining generated $116 million, down from $160.8 million a year earlier. The average Bitcoin price fell to $70,855 from $114,361 during the comparable period. Riot increased Bitcoin production by 16%, reaching 1,637 BTC against 1,406 BTC previously.
The average mining cost declined to $39,265 per Bitcoin, excluding depreciation. This compared with $46,324 during the third quarter of 2025. Riot received $24.7 million in power curtailment credits, equivalent to $15,067 per Bitcoin mined.
Engineering revenue increased to $47 million from $19.1 million year-over-year. Strong demand for custom electrical equipment from third-party data center operators supported the improvement. Consequently, engineering provided another source of growth beyond Riot’s mining and leasing operations.
Bitcoin Sales Support Data Center Expansion
Riot ended September with $950.2 million in combined cash and Bitcoin holdings. This included $748.2 million in cash, of which $79.2 million was restricted. The company also held 2,418 BTC valued at approximately $202 million at quarter-end prices.
During the first nine months of 2026, Riot sold 20,264 BTC for approximately $1.5 billion. The company primarily directed the proceeds toward its data center development program. Riot fully repaid and terminated its $200 million Coinbase credit facility, releasing all pledged Bitcoin.
The company reported no equity issuance during 2026. Its management also indicated that current liquidity could support its announced development projects. Meanwhile, the Corsicana lease adds a substantial long-term revenue commitment to Riot’s expanding infrastructure portfolio.
 
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