Riot to sell Bitcoin to fund $2.1B-$2.3B AI data center

Riot Platforms plans to sell Bitcoin from its corporate treasury to fund construction of a 191-megawatt AI data center under a 20-year lease with an unnamed frontier AI lab. The company expects the first 96 MW to be available in December 2027, when initial rent payments are scheduled to begin, and the remaining 95 MW to be delivered in June 2028.

Riot estimates the build will require $2.1 billion to $2.3 billion of capital spending. The company assumes 80% to 90% of that total will be financed with long-term project debt, which would leave an equity gap of about $210 million to $460 million before a planned $180 million refinancing tied to Riot’s AMD deployment. That refinancing, if completed as projected, would reduce the equity need to between $30 million and $280 million.

Riot disclosed a $573 million interim facility administered by Morgan Stanley Senior Funding intended for long-lead equipment and development costs. The facility carries interest at SOFR plus 2.75% and matures Oct. 15, 2026, subject to limited extensions. The filings do not state whether the entire interim facility has been drawn or is unconditionally available. An investment-grade credit backstop is being finalized, with provider, amount and conditions not disclosed. Riot’s planned long-term project debt has not been reported as closed.

Company materials identify continued sales of Bitcoin from Riot’s treasury as the primary source of equity during construction. Riot reported holding 11,380 Bitcoin as of June 30. Of that total, 5,821 Bitcoin are pledged against a fully drawn $200 million Coinbase credit facility, leaving 5,559 Bitcoin not classified as restricted. Riot sold 9,665 Bitcoin for $732.5 million during the first half of 2026. The filings do not specify any guaranteed future sales.

Riot reported mining cost metrics for the second quarter that highlight the distinction between cash and accounting measures. The cost to mine one Bitcoin excluding miner depreciation was $49,912, or 69.6% of a reported production value of $71,667 per coin. Including depreciation, the all-in accounting cost rose to $90,631, or 126.5% of production value. Riot noted depreciation on mining hardware is a non-cash expense and cannot be avoided by temporarily curtailing machines.

Until rent payments begin and long-term project financing is secured, Riot will rely on a combination of interim financing and monetization of its Bitcoin holdings to cover construction equity needs. The lease projects about $9.1 billion of gross contract revenue over the 20-year base term; two tenant-controlled extension options could increase projected gross revenue to roughly $16.1 billion if both are exercised. The company’s filings state several financing elements remain unfinished and that planned revenue depends on timely completion of the build and any exercise of extension options by the tenant.