Riot leases Corsicana to AI lab for $28B, reports Q3 results
Analysis
Strongly positive on the strategic/capacity front: the ~$28B, 910 MW Corsicana lease is the largest in Riot's history and takes total leased capacity to ~$38B/1,151 MW, with management reiterating no planned equity issuance. Core Q3 financials were more mixed - revenue grew just 1% and GAAP net income fell sharply to $4.0M from $104.5M a year earlier as bitcoin mining revenue declined, though Adjusted EBITDA of $191.3M and a strong cash position support the buildout.
Key points
- Riot signed a 15-year triple-net powered land lease for the entirety of its Corsicana, Texas campus with Anthropic, which the release calls a Frontier AI Lab and the 10-Q names.
- The lease covers 910 MW of critical IT capacity and is valued at approximately $28 billion in total contract value, with approximately $1.8 billion of average annual rent.
- Value could reach approximately $54 billion if both five-year extension options are exercised.
- Capacity delivers in three phases: 400 MW in September 2027, 200 MW in January 2028, and 310 MW in July 2028.
- Riot funds $2 million per IT MW for site work and electrical infrastructure; the remaining $4 million per IT MW is reimbursed to the tenant, expected to be funded mainly via non-recourse project debt.
- Management does not currently anticipate issuing equity to fund announced projects.
- Q3 2026 total revenue was $181.4 million (+1% year-over-year), with Bitcoin Mining revenue of $116.0 million and Engineering revenue of $47.0 million.
- Net income was $4.0 million and Adjusted EBITDA was $191.3 million for the quarter.
- The company ended the quarter with $950.2 million in cash and bitcoin, including $748.2 million in cash, and sold 20,264 bitcoin year-to-date for about $1.5 billion to fund data center development.
- Riot will host a conference call on November 4, 2026 at 8:00 a.m. ET to discuss results.
Deal
Site update
| Site | Status | Active | In build | Theoretical |
|---|---|---|---|---|
CorsicanaCorsicana, TX Entire Corsicana campus (910 MW critical IT / up to 1.0 GW utility power) now under a 15-year lease to an undisclosed Frontier AI Lab, ~$28B total contract value. Phased delivery: 400 MW Sep 2027, 200 MW Jan 2028, 310 MW Jul 2028. Existing 400 MW (gross) Bitcoin-mining facility (Phase 1) continues pending transition under the new lease. | ActiveUnder construction | 400 MWgross | — | 1,000 MWgross |