Riot Platforms Soars on $28B AI Data Center Deal as Hut 8 Shares Drop Amid Revenue Decline

Riot and Hut 8 present sharply different outcomes as both companies develop AI infrastructure amid shifting business models.

The 15-year lease will cover 910 megawatts at Riot’s facility in Corsicana, Texas, increasing the company’s projected data center lease revenue to around $38 billion from three agreements signed this year alone. This milestone highlights Riot’s gradual move away from depending primarily on Bitcoin mining income toward a broader AI infrastructure strategy.

CEO Jason Les highlighted during the quarterly earnings call that a year ago, Riot’s cash flow was closely tied to Bitcoin price fluctuations, but with the new leases fully operational, almost all expected future cash flow will stem from long-term rental agreements with key AI ecosystem participants.

Riot’s third-quarter report noted that while the company will supply the land and power infrastructure originally intended for Bitcoin mining, the AI tenant—identified in filings as Anthropic—will own and manage the computing hardware and cover operational expenses.

The total capital expenditure for the project is estimated at $5.5 billion, primarily financed through loans secured by lease payments, although final financing arrangements are still pending. The project’s first phase is slated for completion by September 2027, with lease payments scheduled to commence within two months thereafter.

Riot reported third-quarter revenue of $181.4 million, a modest 1% increase year-over-year, and sold 10,599 BTC during the quarter to fund its data center expansion. CEO Les further indicated that Bitcoin mining activities at the Corsicana site might start winding down in the summer of 2027.

Conversely, shares of fellow Bitcoin miner Hut 8 dropped over 22% intraday after reporting third-quarter revenue that fell short of analyst expectations amidst its transition to AI infrastructure.

Hut 8’s quarterly revenue declined 15% to $71.1 million, missing the $75.8 million analysts had forecasted, according to MarketBeat. CFO Sean Glennan attributed the revenue drop partly to asset sales and lower income per mined Bitcoin, coupled with increased cash administrative expenses compared to the previous year.

Glennan explained that the company’s legacy revenue stream is no longer the primary driver of growth, while revenues from large infrastructure contracts remain dependent on the progress of facility deliveries.

CEO Asher Genoot criticized the complexity and high costs of building traditional AI data centers, as the company plans to scale its projects significantly.

Genoot remarked, “Many of today’s data centers resemble NASA space programs—impressive engineering feats, but complicated, expensive, and slow to build.”

Hut 8’s third-quarter presentation revealed it has raised $7.5 billion in project bonds to fully back two significant AI data center projects, yet neither has started generating rental income.

This comparison underscores Riot’s successful pivot toward stable, lease-driven revenue in AI infrastructure, while Hut 8 grapples with challenges and delays in capitalizing on similar AI development efforts.