Riot Sells 79% of Bitcoin Treasury for $28B AI Deal

Why Is a Major Bitcoin Miner Selling Its Crypto?

American Bitcoin miner Riot Platforms Inc. has made a major strategic shift. The company sold off 79% of its Bitcoin holdings during the third quarter of 2026.

Instead of keeping heavy crypto reserves, Riot is shifting capital directly into artificial intelligence infrastructure. This decision reflects a growing trend among crypto miners seeking reliable long-term revenue.

According to financial reports, Riot reduced its Bitcoin treasury from 11,380 BTCBTC+3.17% down to 2,418 BTC. In total, the miner liquidated 10,599 BTC recently to fund its new projects.

Cashing In $1.5 Billion in Bitcoin Reserves

Over the first nine months of 2026, Riot sold a total of 20,264 BTC on the open market. These sales generated approximately $1.5 billion in cash.

The company is using these funds to repurpose its massive power capacity. By expanding beyond traditional mining, Riot is preparing its facilities for high-performance computing tasks.

Past performance of digital assets is not an indication of future results. Crypto markets remain volatile, and major business shifts involve operational risks.

The $28 Billion Texas AI Deal Explained

The main driver for selling Bitcoin was a long-term real estate and energy agreement in Texas. Riot signed a 15-year deal to lease powered land at its Corsicana campus.

The strategic partner in this agreement is Frontier AI Lab (Anthropic). Under the deal, Riot will supply 910 megawatts (MW) of power capacity for AI operations.

Here are the key financial details of this major energy deal:

• Initial contract value is estimated at $28 billion.
• Average starting annual rent will be about $1.8 billion.
• Total long-term data center revenue for Riot reaches $38 billion across all projects.
• Riot now controls 1,151 MW of total power capacity.

What Is a Triple-Net Lease and Why Does It Matter?

Riot structured this agreement as a triple-net lease. This real estate setup offers significant financial advantages for the landlord.

Under a triple-net lease, the tenant buys, operates, and maintains all computing hardware. Frontier AI Lab handles the expensive AI servers, while Riot provides the land and electricity.

CEO Jason Les explained that this structure cuts Riot's building costs by roughly half compared to traditional Tier 3 data centers.

Funding the project this way also helps avoid issuing new shares. That means existing stock owners will not experience equity dilution.

Why Falling Crypto Mining Margins Pushed the Switch

The core reason for this transformation is tightening profit margins in classic crypto mining. Lower rewards make computing facilities more valuable when allocated to AI.

In Q3, Riot earned $116 million from mining revenue, down 28% from prior periods. Even though the company mined 1,637 BTC, overall mining profitability slowed.

Despite lower mining revenue, total quarterly revenue hit $181.4 million. This represented a 1% increase year-over-year and beat market expectations, yielding a net profit of $4.03 million.

Clearing Debt and Future Reserve Sales

Riot also focused on improving its corporate balance sheet. The company fully repaid a $200 million credit line with Coinbase during the quarter.

By paying off that credit facility, Riot retrieved 5,821 BTC that had been locked up as loan collateral.

Riot finished the quarter with $950.2 million in total free liquidity, combining cash and remaining digital assets.

The company still holds 2,418 BTC on its balance sheet. However, management noted that these remaining coins may also be sold in Q4 to continue funding construction in Texas.

Stock Market Reaction and Investor Context

Wall Street reacted quickly to the strategic announcement. RIOT shares spiked to $16.20 early in the trading session before stabilizing between $15.45 and $15.50 on high volume.

Investors should note that past corporate performance does not guarantee future stock returns. Corporate transitions depend heavily on smooth operational execution and broader market conditions.