Riot Platforms has signed a $9.1 billion, 20-year deal with Anthropic to provide AI computing resources, marking a significant shift in the bitcoin mining industry. The agreement highlights the growing trend of miners pivoting towards AI infrastructure for steadier revenue.
TL;DR
- Riot Platforms has secured a $9.1 billion, 20-year deal with Anthropic for AI computing resources.
- The agreement includes 191 megawatts of computing capacity, with potential extensions increasing the value to $16.1 billion.
- This deal reflects an industry-wide shift from bitcoin mining to AI infrastructure, providing miners with more stable revenue streams.
What happened
Riot Platforms shares surged over 20% in pre-market trading on Tuesday following the announcement of a $9.1 billion deal with Anthropic. The agreement, identified by Bloomberg, covers 191 megawatts of computing capacity at Riot's Rockdale, Texas campus. The deal includes two five-year extension options, potentially increasing the total contract revenue to $16.1 billion.
Deployment at Riot's sites is set to begin in December 2027, with full buildout expected by June 2028. Riot projects the base term will generate between $7.3 billion and $8.2 billion in cumulative net operating income. This agreement follows Riot's lease with Advanced Micro Devices (AMD), bringing contracted AI capacity at Rockdale to 241 megawatts.
Why it matters
This deal exemplifies an industry-wide pivot towards AI infrastructure, as miners seek steadier revenue from their power-rich data center sites. Miners control large sites with established grid connections, land, and cooling systems, allowing them to serve power-hungry AI customers faster than developers starting from scratch.
The shift towards AI infrastructure provides miners with more stable revenue streams compared to the volatile flows from bitcoin mining. This trend is evident in other deals, such as Anthropic's six-year, $10 billion contract with Volta Infra for computing capacity at a site in Norway operated by bitcoin miner Bitdeer.
Key facts
- Riot Platforms shares surged over 20% in pre-market trading on Tuesday.
- The deal with Anthropic is valued at $9.1 billion for a 20-year agreement.
- The agreement includes 191 megawatts of computing capacity at Riot's Rockdale, Texas campus.
- Potential extensions could increase the total contract revenue to $16.1 billion.
- Deployment at Riot's sites is set to begin in December 2027, with full buildout expected by June 2028.
- Riot projects the base term will generate between $7.3 billion and $8.2 billion in cumulative net operating income.
- This agreement follows Riot's lease with Advanced Micro Devices (AMD), bringing contracted AI capacity at Rockdale to 241 megawatts.
- Anthropic recently signed a six-year, $10 billion contract with Volta Infra for computing capacity at a site in Norway operated by bitcoin miner Bitdeer.
Context
The bitcoin mining industry is increasingly looking towards AI infrastructure as a more stable revenue stream. Miners control large sites with established grid connections, land, and cooling systems, making them well-positioned to serve the power-hungry AI industry. This shift is part of a broader trend in the tech industry towards AI-driven solutions and infrastructure.
The deal between Riot Platforms and Anthropic is not an isolated incident. Other bitcoin miners, such as Cipher Mining, TeraWulf, and IREN, have also been exploring similar deals to diversify their revenue streams. This trend highlights the growing importance of AI infrastructure and the potential for significant financial gains in this sector.
