Riot Platforms (NASDAQ:RIOT) Signs $9.1B AI Data Center Lease, Posts Q2 Revenue of $174.2M

Riot Platforms (NASDAQ: RIOT) reported Q2 2026 revenue of $174.2 million, a 14% increase year-over-year, while simultaneously announcing a 20-year, 191-megawatt data center lease with a leading frontier AI lab that is expected to generate approximately $9.1 billion in total contract revenue. The GAAP net loss widened sharply to $237.2 million from a $219.5 million profit in Q2 2025, reflecting a significant decline in Bitcoin Mining revenue and a series of cost increases that outpaced top-line growth.

Q2 2026 Results

• Total revenue: $174.2 million, up 14% from $153.0 million in Q2 2025, including $23.2 million in Data Center revenue (its second quarter of segment revenue).
• Bitcoin Mining revenue: $113.7 million, down 19.3% from $140.9 million in Q2 2025, driven by lower average bitcoin prices and a higher global network hash rate.
• Engineering revenue: $37.3 million, up from $10.6 million in Q2 2025.
• GAAP net loss: $237.2 million, compared to net income of $219.5 million in Q2 2025; Adjusted EBITDA was -$69.7 million versus +$495.3 million a year earlier.
• Liquidity: Over $1.2 billion in liquid assets at quarter end, including 11,380 bitcoin and $548.9 million in cash.

What Drove the Results

Revenue grew 14% year-over-year, but the net income line collapsed from a $219.5 million profit to a $237.2 million loss. Bitcoin Mining revenue fell 19.3% as lower average bitcoin prices and a rising global network hash rate reduced per-coin economics. Cost of power for self-mining operations rose 18.2% year-over-year to $73.5 million, while depreciation and amortization increased 17.5% to $97.8 million. A $28.0 million impairment charge on property and equipment, with no equivalent in the prior-year period, added further pressure. The change in fair value of derivative adjustments contributed only $8.4 million to Adjusted EBITDA in Q2 2026, compared to $42.7 million in Q2 2025, compressing the non-GAAP result significantly.

The company produced 1,587 bitcoin in the quarter, up from 1,426 in Q2 2025, at an average cost to mine of $49,912 per bitcoin (excluding depreciation), compared to $48,992 in the prior-year period.

Why It Matters

The 20-year lease with a leading frontier AI lab, executed subsequent to quarter end, covers 191 megawatts of critical IT capacity at Riot's Rockdale campus and is expected to generate approximately $9.1 billion in initial contract revenue through June 2048. The lease also carries two five-year extension options at the tenant's election, representing total potential contract value of approximately $16.1 billion if both are exercised. Estimated cumulative net operating income over the base term ranges from $7.3 billion to $8.2 billion, or approximately $365 million to $411 million annually. Phased delivery begins with an initial 96 IT MW in December 2027, with full 191 IT MW deployment targeted by June 2028. Riot secured a $573 million interim financing facility from Morgan Stanley to fund initial development costs.

Combined with Riot's existing 50-megawatt lease with Advanced Micro Devices, Inc. (AMD), the company has now contracted 241 megawatts of critical IT capacity. CEO Jason Les noted that Riot's position rests on multi-gigawatt-scale power capacity, in-house data center development expertise, and the ability to engineer custom infrastructure. AMD's 25-megawatt initial deployment was completed on time and on budget during the quarter, and construction on the 25-megawatt expansion is underway, with Phase 3 (10 MW) targeted for November 2026 and Phase 4 (15 MW) for May 2027.

Wall Street View

Bernstein analysts, led by Gautam Chhugani, raised their price target on RIOT to $35 from $30 following the AI lab lease announcement, maintaining an Outperform rating. Bernstein cited the contract as creating a clear growth path for Riot's AI colocation business, estimating that Riot will require approximately $3.7 billion in additional secured financing to fund its modeled buildout, equivalent to roughly 90% of total project capital expenditure. The firm flagged financing requirements, construction execution, and Riot's geographic concentration in Texas as key risks.

Investor Takeaway

Riot's Q2 results illustrate the tension inside its business model: total revenue grew 14% year-over-year while Bitcoin Mining revenue fell 19.3%, underscoring how dependent near-term profitability remains on bitcoin price levels. The $9.1 billion AI lease fundamentally changes the revenue mix over the next decade, adding long-term contracted income that is structurally independent of cryptocurrency economics. The scale of required capital, estimated at $2.1 billion to $2.3 billion in upfront development costs with $573 million of interim financing secured so far, means execution on financing and construction timelines will be the primary variable investors need to monitor. Shares gained 4.33% on Tuesday, August 11, while the S&P 500 declined 0.32%.