Riot Platforms (RIOT) shares climbed 14.84% to $16.10, adding $2.08 during morning trading, after the company announced a $28 billion artificial intelligence lease that expands its data center business and lifts total contracted data center revenue to approximately $38 billion.
$28 Billion Frontier AI Lease at Corsicana
Riot signed a 15-year triple-net powered land lease with a leading Frontier AI Lab covering its entire Corsicana campus in Texas, representing 910 megawatts of critical IT capacity on a contiguous 332-acre parcel. The agreement carries approximately $28 billion in total contract value over its initial term, with average annual rent of approximately $1.8 billion including contractual escalators. 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%, and Riot expects approximately $1.8 billion in average annual net operating income during the initial term. Capital costs are estimated 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, while the tenant will reimburse the remaining $4 million per megawatt through phased payments, expected to use non-recourse project financing or direct tenant funding.
Delivery is scheduled across three phases in 2027 and 2028: 400 MW in September 2027, 200 MW in January 2028, and the remaining 310 MW in July 2028, with rent starting within 60 days of each delivery. Under the triple-net structure, Riot provides land, power infrastructure, and completed powered pads, while the tenant procures, installs, owns, and operates its computing equipment and covers substantially all operating expenses, including electricity.
Contracted Data Center Revenue Reaches $38 Billion
The Corsicana agreement expands Riot’s existing commitments alongside its AMD contract and an earlier lease with the same Frontier AI Lab at Rockdale. Together, these agreements cover 1,151 MW of critical IT capacity. Riot now reports approximately $38 billion in long-term contracted data center revenue and expects more than $2 billion in average annual net operating income at full deployment. Management plans to allocate capital between infrastructure development and potential shareholder returns.
The agreement also reduces Riot’s development capital requirements compared with conventional construction, with estimated capital intensity at approximately half the cost of a typical Tier 3 build. 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 a year earlier, a 1% annual increase as data center and engineering growth offset weaker mining revenue. Lower average Bitcoin prices affected mining operations.
Data center revenue reached $18.4 million, including $7.7 million in base rent, $0.5 million in variable lease revenue, and $10.2 million in tenant fit-out reimbursements, reflecting 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. Riot increased Bitcoin production by 16% to 1,637 BTC from 1,406 BTC. The average mining cost declined to $39,265 per Bitcoin excluding depreciation, compared with $46,324 in 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, supported by strong demand for custom electrical equipment from third-party data center operators.
Bitcoin Sales Support 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. 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, primarily directing 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, and management indicated that current liquidity could support its announced development projects.
