Riot’s $28 Billion AI Lease Puts Hut 8’s Transition in Focus

By Elena Vasquez

What does Riot’s $28 billion lease commit?

Bitcoin miner Riot Platforms announced a $28 billion, 15-year AI data-center lease covering 910 megawatts at its Corsicana, Texas facility, sending shares up more than 13% Wednesday. The contract, Riot’s largest agreement to date, lifts future contracted data-center revenue to about $38 billion across three leases signed this year.

Riot identified Anthropic as the AI tenant in its quarterly filing, a central step in the company’s effort to reduce reliance on Bitcoin-mining revenue. Under the operating split, Riot will provide land and power infrastructure originally developed for Bitcoin mining. The tenant will own and operate the computing equipment and cover operating expenses.

Riot estimates the project’s total capital costs at $5.5 billion. The company expects to finance that cost primarily through debt backed by lease payments, although it has not secured the financing. The contract value therefore does not remove Riot’s construction and funding risk.

CEO Jason Les said during Wednesday’s earnings call: “A year ago, our cash flow depended on the price of Bitcoin.” He continued that “at full deployment of currently executed deals, nearly all of our expected cash flow will be generated from long-term leases with leading players in the AI ecosystem.”

The first phase is expected in September 2027, and Riot expects rental payments to begin within 60 days of delivery. Les said Bitcoin mining at Corsicana could begin winding down in summer 2027. These remain forward-looking dates rather than completed operating milestones.

Riot reported third-quarter revenue of $181.4 million, up 1% year over year. It sold 10,599 BTC during the quarter to help finance the data-center expansion, so Bitcoin asset sales still support the build.

Takeaway: Riot has secured long-term lease commitments, but its projected cash-flow shift still depends on project debt, construction and a 2027 handover.

How does Hut 8’s AI transition compare?

Hut 8 shares plunged more than 22% at one point Wednesday after the miner reported weaker-than-expected quarterly revenue during its transition toward AI infrastructure. Third-quarter revenue fell 15% to $71.1 million, below the $75.8 million analyst estimate cited by MarketBeat.

CFO Sean Glennan attributed the decline partly to asset sales and lower revenue per Bitcoin mined. Cash administrative expenses also rose year over year, but the company disclosed no dollar amount for that increase.

Glennan said: “The legacy revenue base is no longer the main growth driver, while the larger contracted infrastructure revenues remain tied to delivery milestones.” The distinction matters because Hut 8 has not yet replaced mining revenue with operating lease income.

Hut 8 has secured $7.5 billion in project bonds to fully finance two major AI data-center developments. Neither has begun generating lease revenue. Financing, therefore, does not remove delivery risk or establish when rent will appear.

CEO Asher Genoot said: “Many of today’s data centers resemble NASA rocket programs—remarkable engineering, but complex, expensive, and slow to deliver.” He pointed to construction complexity as Hut 8 develops projects on a larger scale.

The two reports expose different execution gaps. Riot has a named tenant and $28 billion in contracted lease revenue but still lacks secured project financing. Hut 8 says two developments are fully financed, yet neither generates lease income. Contract totals alone therefore do not establish cash-flow timing.

Takeaway: Riot’s first dated checkpoint comes in September 2027, when it expects phase-one delivery and rental payments within 60 days; Hut 8’s contracted revenue remains tied to delivery milestones.