Riot Platforms (NASDAQ: RIOT) shares climbed 14.84% to $16.10, adding $2.08 during morning trading, after the Bitcoin miner announced a $28 billion artificial intelligence lease that lifted its total contracted data center revenue to approximately $38 billion. The company said the agreement strengthens its position in large-scale digital infrastructure and marks a major expansion of its data center business. The deal also shifts part of Riot's revenue base from Bitcoin-linked mining income toward fixed, long-duration lease payments.

15-Year Lease Covers Entire Corsicana Campus

Riot signed a 15-year triple-net powered land lease with a leading Frontier AI Lab covering the company's entire Corsicana campus in Texas. The agreement encompasses 910 megawatts of critical IT capacity on a contiguous 332-acre parcel and 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. Should the tenant exercise both five-year extension options, total contract value could reach approximately $54 billion. The lease carries an estimated net operating income margin of 99%, which the company said translates into approximately $1.8 billion in average annual net operating income during the initial term. Triple-net leases are a long-standing real estate structure in which the tenant, rather than the landlord, bears most property-level costs — the arrangement behind the lease's high estimated margin.

Estimated capital costs total $6 million per IT megawatt, or approximately $5.5 billion overall. Riot will contribute $2 million per IT megawatt toward site work and electrical infrastructure, while the tenant will reimburse the remaining $4 million per megawatt through phased payments. The company expects those reimbursements to be funded through non-recourse project financing or direct tenant funding.

Delivery is scheduled in three phases across 2027 and 2028. Riot plans to deliver 400 MW in September 2027, followed by 200 MW in January 2028 and the remaining 310 MW in July 2028, with rent commencing within 60 days of each delivery. Under the triple-net structure, Riot will provide the land, power infrastructure, and completed powered pads, while the tenant will procure, install, own, and operate its computing equipment and cover substantially all operating expenses, including electricity costs.

Contracted Data Center Revenue Reaches $38 Billion

The Corsicana deal expands Riot's existing data center commitments, which include a contract with AMD and an earlier lease with the same Frontier AI Lab at the company's Rockdale site. Together, the agreements cover 1,151 MW of critical IT capacity, and Riot now reports approximately $38 billion in long-term contracted data center revenue. The deal reflects a broader dynamic in AI infrastructure, where access to large-scale power has become a key constraint and owners of grid-connected sites — including Bitcoin miners — have drawn interest as suppliers of powered capacity.

At full deployment, the company expects more than $2 billion in average annual net operating income, and management plans to allocate capital between infrastructure development and potential shareholder returns. Riot also said the Corsicana agreement reduces development capital requirements compared with conventional construction, with estimated capital intensity representing approximately half the cost of a typical Tier 3 build. The company expects an unlevered yield on cost of approximately 33%.

Third-Quarter Revenue Edges Higher as Engineering Offsets Mining Decline

Riot reported third-quarter 2026 revenue of $181.4 million, up 1% from $180.2 million in the prior-year period, as data center and engineering growth offset weaker mining results. Lower average Bitcoin prices weighed on the mining business. The quarter captures a business in transition: mining remains Riot's largest revenue source, while its fastest growth is now coming from lines tied to the infrastructure buildout.

Data center revenue reached $18.4 million during the quarter, comprising $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, as the average Bitcoin price fell to $70,855 from $114,361. Production nonetheless rose 16% to 1,637 BTC from 1,406 BTC, and the average mining cost declined to $39,265 per Bitcoin, excluding depreciation, from $46,324 in the third quarter of 2025. Riot also 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, supported by strong demand for custom electrical equipment from third-party data center operators. The segment provided an additional source of growth beyond Riot's mining and leasing operations.

Bitcoin Sales Fund Data Center Expansion

Riot ended September with $950.2 million in combined cash and Bitcoin holdings, including $748.2 million in cash—of which $79.2 million was restricted—and 2,418 BTC valued at approximately $202 million at quarter-end prices.

During the first nine months of 2026, the company sold 20,264 BTC for approximately $1.5 billion, directing the proceeds primarily toward its data center development program. Riot also fully repaid and terminated its $200 million Coinbase credit facility, releasing all pledged Bitcoin, and reported no equity issuance during 2026. Management indicated that current liquidity is sufficient to support its announced development projects.

The Corsicana lease adds a substantial long-term revenue commitment to Riot's expanding infrastructure portfolio as the company broadens its business beyond Bitcoin mining into large-scale digital infrastructure for artificial intelligence workloads. Milestones ahead include the first 400 MW delivery in September 2027, rent commencing within 60 days of each phase, and any tenant decision on the two five-year extension options that would lift total contract value toward $54 billion.

Source: Blockonomi