Riot to Sell Bitcoin for $12 Billion AI Data Center Construction

Riot Platforms, a Bitcoin mining company, plans to sell its Bitcoin holdings to fund the initial construction costs for expanding its artificial intelligence (AI) data center business. Riot has signed a lease agreement with Frontier AI for a data center with a capacity of 191 megawatts (MW), with the contract expected to last 20 years and generate approximately $9.1 billion in total revenue. However, the first 96 MW is expected to be supplied starting in December 2027, while the remaining 95 MW is targeted for supply by June 2028. Riot anticipates capital expenditures (CAPEX) for this project to be between $2.1 billion and $2.3 billion, planning to finance 80-90% of it through long-term project debt. So far this year, Riot has sold 9,665 Bitcoins, cashing in $732.5 million. However, 51.2% of its Bitcoin holdings are tied up as collateral for loans, leaving only 5,559 Bitcoins available for sale. The cost of mining Bitcoin stands at $49,912, which is below its production value of $71,667, but the total cost, including depreciation, has risen to $90,631, increasing accounting pressure.