Riot's AI Deal Hinges on Selling Bitcoin Ahead of $9.1B Revenue Promise

Riot Platforms, a Bitcoin miner, has signed a massive lease for its data center to accommodate an unnamed frontier AI lab. The deal is expected to generate around $9.1 billion in gross contract revenue over 20 years.

The first phase of the project will become available in December 2027, when rent is expected to commence. However, Riot still needs financing for construction and has turned to its Bitcoin inventory as a source of equity funding.

The company's mining economics have been scrutinized, with cost-to-mine one Bitcoin excluding depreciation at $49,912 in the second quarter, or 69.6% of production value. Including depreciation, the figure rose to $90,631, or 126.5% of production value.