Riot Signs $9.1 Billion AI Data Center Lease, Loan Maturity Issues Emerge

Riot Platforms' $9.1 billion AI data center lease agreement has brought funding timelines into focus. A $573 million bridge loan is set to mature on December 31, 2026, while the first lease capacity supply is scheduled for December 2027. Riot Platforms announced on August 10 during its Q2 earnings report that it has entered into a 20-year lease agreement for 191 MW of IT capacity at its Rockdale, Texas campus. The initial contract revenue is approximately $9.1 billion, and if the five-year extension option is exercised, the total potential contract value will increase to about $16.1 billion. The supply schedule includes the first 96 IT MW to be delivered in December 2027, with the remaining 95 IT MW expected in June 2028. The bridge loan is a short-term loan designed to fill gaps before long-term financing is secured, structured as non-recourse financing limited to specific project assets. Riot Platforms reported Q2 revenues of $174.2 million, a 14% increase year-over-year, while net losses amounted to $237.2 million. This contract is part of a strategy to transition mining infrastructure to meet AI demand, with plans to monetize existing infrastructure through data center leasing services. Following the announcement of the contract size, Riot Platforms' stock price rose by 20.9%.

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