Riot Platforms (RIOT) shares surged 8% following an expanded deal with Advanced Micro Devices (AMD), marking a significant pivot from bitcoin mining to data center operations focused on AI and high-performance computing. AMD has doubled its contracted capacity at Riot’s Texas facility to 50 megawatts, with the potential to expand to 150 megawatts, a move projected to generate approximately $636 million over the next decade.
This strategic shift is crucial as it reflects growing lender confidence, evidenced by Riot’s improved credit terms on its $200 million bitcoin-backed facility, reducing the interest rate to 6.15% from 8.3%. Despite a decline in bitcoin mining revenue, which fell to $111.9 million due to market pressures, Riot’s total revenue increased, supported by initial gains from its data center operations.
The market is responding positively, indicating that investors are willing to pay a premium for Riot’s stock as it transitions into a broader tech infrastructure role, potentially positioning the company for sustained growth in the evolving digital landscape.
Source: coindesk.com