Riot Platforms has entered into a $9 billion, 20-year compute deal with Anthropic, allowing the AI company to lease 191 megawatts of power from Riot's Rockdale, Texas campus.
This agreement is particularly important as it positions Riot as a provider of AI infrastructure rather than solely a bitcoin miner, reflecting a broader trend in the industry where miners are pivoting towards AI due to declining cryptocurrency prices and increased demand for computing power. Following the announcement, Riot's shares initially surged over 20% before settling back down.
The deal is projected to generate $9.1 billion in revenue over its duration, potentially increasing to $16.1 billion if extended. This move follows Riot's existing contract with Advanced Micro Devices, leading to a total of $9.8 billion in contracted revenue from two tenants.
Analysts suggest that as bitcoin mining becomes less profitable due to market conditions, companies like Riot are increasingly viewed as owners of valuable digital infrastructure.
The scarcity of power resources, especially in Texas, could enhance the strategic value of such agreements, prompting analysts like Michael Donovan from Compass Point to maintain a 'Buy' rating on Riot shares with a price target of $29