Riot Platforms expands AI lease strategy as Hut 8 falls on revenue miss

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Riot AI lease strategy expands

Highlights

Riot Platforms signs a $28 billion, 15-year AI data center lease with Anthropic covering 910 MW at Corsicana, Texas, shifting focus from Bitcoin mining.
Riot reports third-quarter revenue of $181.4 million, up 1%, and notes nearly all future cash flow will come from long-term AI leases rather than Bitcoin.
Hut 8 third-quarter revenue drops 15% to $71.1 million, missing estimates, as the company transitions toward AI infrastructure with $7.5 billion in project bonds secured.

AI infrastructure deals reshape miner revenue outlook

As reported by Cointelegraph, citing Yahoo Finance, Riot Platforms said it has signed a $28 billion AI data center lease, its largest agreement so far, covering 910 megawatts at its Corsicana, Texas, facility. The 15-year deal marks a major expansion of the company’s effort to use power and land assets first developed for Bitcoin mining to support artificial intelligence workloads.

In its third-quarter earnings release and quarterly filing, Riot says the tenant is Anthropic, which will own and operate the computing equipment and pay operating expenses. Riot says it will provide the land and power infrastructure, with total project capital costs estimated at $5.5 billion and expected to be financed mainly through debt backed by lease payments, although that financing is not yet secured.

The first phase is expected to be delivered in September 2027, with rental payments beginning within 60 days of delivery. During Wednesday’s earnings call, Chief Executive Jason Les says nearly all expected cash flow at full deployment of currently executed deals will come from long-term leases with leading AI companies, rather than depending primarily on Bitcoin prices.

Riot also reports third-quarter revenue of $181.4 million, up 1% from a year earlier, and says it sold 10,599 BTC during the quarter to help fund its data center expansion. Les says Bitcoin mining at Corsicana could begin winding down in summer 2027 as the site shifts further toward AI infrastructure use.

Quarterly results highlight divergent market reaction

Hut 8 shares fall sharply on Wednesday after the company reports third-quarter revenue of $71.1 million, down 15% and below analysts’ estimate of $75.8 million, based on MarketBeat data cited in the report. The decline comes as the company continues its own transition toward AI infrastructure, a shift that is adding pressure to near-term operating performance.

During the earnings call, Chief Financial Officer Sean Glennan says revenue is hurt partly by asset sales and lower revenue per Bitcoin mined, while cash administrative expenses also rise from a year earlier. He says the company’s legacy revenue base is no longer the main growth engine, while larger contracted infrastructure revenues remain tied to delivery milestones.

Chief Executive Asher Genoot says conventional AI data center development remains complex, expensive and slow as Hut 8 pursues larger projects. According to the company’s third-quarter earnings presentation, Hut 8 has already secured $7.5 billion in project bonds to fully finance two major AI data center developments, although neither project has started generating lease revenue.

In our earlier article on the U.S. AI data center boom, we explained how soaring funding costs, construction delays, and grid limitations are making it harder for developers to deliver projects on time and within budget. We also noted that only a fraction of announced builds look truly credible, as investor confidence can weaken quickly when timelines slip and cost overruns force companies back to the market for more capital.

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