Riot Platforms (RIOT) Stock: AMD Deal and Land Buy Drive 16% Friday Gain

TLDR

• Riot Platforms closed Friday up 16.05% at $19.23 after revealing a data center lease with AMD and land purchase
• The company spent $96 million in Bitcoin to acquire 200 acres in Rockdale, Texas that it previously leased
• A 10-year AMD agreement provides up to 200 megawatts of data center capacity starting at $311 million
• Full contract value could hit $1 billion if AMD exercises all available extension options
• Piper Sandler sees potential for over $30 per share in value from full data center conversion

Riot Platforms shares climbed 16.05% on Friday to reach $19.23. The surge followed twin announcements about Texas real estate and a chip maker partnership.

Riot Platforms, Inc., RIOT

The Bitcoin miner converted 1,080 coins into cash to buy land. Riot paid $96 million for 200 acres in Rockdale where it already ran operations. The purchase gave the company full ownership of the property.

Riot turned around and signed a lease agreement the same day. AMD committed to a 10-year deal for data center infrastructure at the newly purchased site.

The initial phase covers 25 megawatts of critical IT load capacity. AMD can expand to 200 megawatts by May 2026 under the current agreement structure.

Contract Value and Growth Potential

The base AMD contract is worth $311 million. But the real money sits in the extension clauses.

Three five-year options are written into the deal. If AMD pulls the trigger on all extensions, total contract value approaches $1 billion.

AMD also secured first refusal rights on an additional 100 megawatts. This could double AMD’s footprint at the Rockdale facility.

Piper Sandler kept its Overweight rating with a $26 target price. The firm views the AMD deal as proof that Riot can attract major tech tenants to its facilities.

Trading Activity Jumps

Volume data showed strong market reaction. Riot traded 53.4 million shares on Friday, crushing its three-month average of 19.7 million by 172%.

Competing miners also moved higher. Mara Holdings gained 6.57% and Hut 8 rose 4.14% as the sector responded to Riot’s news.

The general market stayed relatively flat. The S&P 500 fell 0.07% while the Nasdaq edged down 0.06%.

Riot has posted a 30.78% gain year-to-date. Since pivoting to Bitcoin mining in 2016, the stock has delivered 612% returns.

Strategic Shift Takes Shape

Piper Sandler projects significant upside from data center expansion. The firm estimates full conversion of Riot’s Rockdale and Corsicana sites to AI and high-performance computing centers could add over $30 per share in value.

These calculations rely on management’s net operating income projections. The figures assume Riot can fill all 1.2 gigawatts of available capacity across both Texas locations.

Riot still holds 16,925 Bitcoin after funding the land deal. Using digital assets allowed the company to avoid issuing new shares or taking on debt.

The Rockdale property sits near Austin, offering access to power grid infrastructure and technology sector customers. Riot’s Corsicana site presents similar opportunities for future development.

AMD trades at $232.50 with a market cap around $379 billion. The chip maker has returned 12.18% over the past week and 92.43% over the last year.

Riot operates with a $7.2 billion market cap. The stock has ranged from $6.19 to $23.93 over the past 52 weeks.

Piper Sandler believes the AMD partnership positions Riot as a credible choice for hyperscale data center clients. The agreement validates Riot’s transition from pure cryptocurrency mining to diversified infrastructure hosting.

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