Riot shares surge on $28B AI lease as Hut 8 sinks on revenue miss
Bitcoin miner Riot sold BTC to finance its AI expansion, while Hut 8 reported falling revenue and rising costs before its major data center leases generate income.
Riot Platforms saw its shares surge over 13% after announcing a $28 billion AI data center lease, its largest agreement to date. This 15-year deal covers 910 megawatts at its Corsicana, Texas facility and brings its total future contracted data center revenue to approximately $38 billion. The agreement signifies a shift away from Bitcoin mining revenue for Riot, as CEO Jason Les stated that nearly all cash flow will be generated from long-term leases with AI ecosystem players by full deployment.
Hut 8, another Bitcoin miner, reported a 15% drop in third-quarter revenue to $71.1 million, missing analysts' estimates of $75.8 million. Hut 8's CFO, Sean Glennan, attributed the decline to asset sales and lower revenue per Bitcoin mined. The company has secured $7.5 billion in project bonds for two major AI data center projects, although they have yet to generate revenue.
Hut 8 CEO Asher Genoot highlighted the complexity and expense of traditional AI data center construction as the company aims for larger-scale projects.
Written by urgent.news from Cointelegraph's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
This story
This is one outlet's version. Read the fullest account.
