The Riot Platforms Anthropic AI deal accelerates the shift from crypto mining to high-powered AI data center hosting in Texas.
Bitcoin miner Riot Platforms has secured a 20-year, $9.1 billion compute deal with Anthropic, CNBC’s David Faber confirmed.
Under the deal, Anthropic will lease 191 megawatts at Riot’s Rockdale, Texas campus, securing critical grid-connected power amid surging AI demand. The agreement marks Riot’s pivot from Bitcoin miner to AI infrastructure landlord. Riot’s stock initially surged over 20% on the news before giving back nearly all of its gains.
The 20-year agreement is projected to generate $9.1 billion in revenue, with extensions potentially pushing total value to $16.1 billion. Coupled with an existing AMD contract, the deal establishes a two-tenant campus with $9.8 billion in contracted data center revenue, according to Compass Point analyst Michael Donovan.
Once viewed as leveraged bets on crypto prices, public Bitcoin miners are increasingly revalued as digital infrastructure assets. Amid soft crypto markets and booming AI demand, Wall Street now values these companies primarily for their power capacity, data centers, and energy contracts.
The shift from Bitcoin mining to AI began during the 2022 crypto downturn, primarily among smaller operators whose mining costs including power, hardware, and operations exceeded the market value of the Bitcoin they produced.
Squeezed by falling prices, heightened competition and the quadrennial Bitcoin halving that cuts mining rewards, many operators eventually see their profit margins evaporate until they run at a loss.
See also: Kenya Power Says Wind And Solar Grid Surge Threatens Power Supply
By pivoting to AI infrastructure, former Bitcoin miners give investors a broad play on AI growth without forcing them to pick individual winners since all AI developers depend on the same scarce power, compute, and data center assets.
Companies like Cipher Mining, Hut 8, and TeraWulf have emerged as “hybrid” miners by splitting capacity between crypto and AI. Meanwhile, operators like Riot, MARA Holdings, and CleanSpark have largely maintained their focus as pure-play Bitcoin miners.
That existing power access becomes even more valuable as the Electric Reliability Council of Texas (ERCOT) increases scrutiny on new grid interconnections, according to Compass Point analyst Michael Donovan.
While stricter ERCOT oversight may delay speculative grid projects, it won’t dampen demand for near-term power capacity, Donovan noted. He added that the growing scarcity of pre-approved power actually boosts its strategic value, leading Compass Point to reiterate its “Buy” rating and $29 price target on Riot.
