Bitcoin miner Riot Platforms has entered into an initial 15-year agreement valued at approximately $28 billion with artificial intelligence developer Anthropic, marking a major expansion of the company's strategy to transform its Bitcoin mining infrastructure into AI computing facilities. The deal effectively converts electrical capacity built for mining into a long-duration rental business, a pivot the company has already been paying for in part by selling its own Bitcoin holdings.

Under the agreement, the project will cover 910 megawatts of capacity, delivered in phases through July 2028. Riot will provide the land and electrical infrastructure, while Anthropic will install and operate the computing equipment. Once the entire facility becomes operational, Riot expects to generate approximately $1.8 billion in average annual rental revenue. Spread across the 15-year term, that projected rent stream is broadly consistent with the agreement's roughly $28 billion headline value.

Approximately $5.5 Billion in Development Costs

Despite the projected rental income, building the required infrastructure will involve substantial upfront investment. Riot's earnings presentation, released Wednesday, estimates total project costs at approximately $5.5 billion.

Of that amount, around $1.8 billion is allocated to Riot's own site development and electrical infrastructure, while up to $3.6 billion will be used to reimburse Anthropic for its data center facilities. These reimbursements will depend on actual eligible costs and will become payable after each project phase has been delivered and begins generating rental income.

According to Riot's financing illustration, lenders could provide between 80% and 90% of the project's total costs, which would leave Riot responsible for approximately $500 million to $1.1 billion in cash contributions. The company expects to begin the financing process in 2027.

Anthropic Could Receive 12% Annual Interest

One of the most significant financial details involves the reimbursement arrangement between the two companies. Under the structure described in Riot's quarterly filing, Anthropic can recover eligible costs associated with its data center modules through deductions from future rental payments.

The arrangement also includes interest of 12% annually on those eligible costs. As a result, Riot's rental revenue could be reduced by reimbursement deductions and associated interest payments as the agreement progresses.

Several financial details remain unresolved. CoinDesk said it had asked Riot about the rental income remaining after these deductions, whether the company could repay the reimbursements ahead of schedule, and the interest rate it expects to secure on project debt.

Riot Sells More Than 20,000 Bitcoin to Fund AI Expansion

Riot has already been using its Bitcoin holdings to finance its transition toward data center operations. During the first nine months of 2026, the company sold 20,264 BTC for approximately $1.5 billion. The proceeds were directed primarily toward data center development and repayment of Riot's $200 million loan from Coinbase.

By the end of September, Riot held just 2,418 BTC. In effect, the company is converting its mining-era Bitcoin balance sheet into construction capital for the AI buildout. The company also expects to continue selling substantially all newly mined Bitcoin, meaning its mining operations will remain an important source of funding for the infrastructure expansion.

First Corsicana Capacity Expected in June 2027

Riot expects the first phase of its Corsicana campus in Texas to become available in June 2027, allowing the company to begin collecting rental income from the project. The broader 910 MW development will continue through July 2028, with capacity delivered in stages. With financing also expected to begin in 2027, that year is set to mark both the start of the project's fundraising and its first rental income.

Because of the phased structure, rental revenue and reimbursement obligations will develop as individual portions of the facility are completed and become operational. Riot also stated that it does not currently expect to issue new shares to finance its announced projects. Instead, its planned funding strategy relies heavily on project debt, cash contributions, and the continued monetization of Bitcoin holdings.

The Anthropic agreement represents a substantial step in Riot's transition from cryptocurrency mining toward AI infrastructure. However, the project's long-term financial performance will depend on construction costs, borrowing terms, reimbursement obligations, and the rental income ultimately retained after interest deductions.

Source: CoinDesk