910 MW: One lease turns a Bitcoin mining site into an AI data center 🦖
🔭 进群看资金去哪
A filing Riot submitted to the U.S. Securities and Exchange Commission on November 4 shows that its data center lease with Anthropic officially took effect that day.
The Corsicana data center has a critical IT load capacity of 910 MW.
The deal is worth approximately $28 billion.
But there’s a clause in the filing that few people have noticed.
If Riot can’t secure financing,
the cost of the data center modules will be deducted from rent at an annual interest rate of 12%.
Let’s lay out the facts first.
The project will be delivered in three phases.
The first tranche of capacity is targeted to come online by June 28, 2027.
The third phase is scheduled for July 30, 2028.
Riot must repay Anthropic for part of the module costs,
based on the power capacity actually delivered, up to $4 million per MW.
At $4 million per MW, 910 MW comes to a cap of $3.64 billion.
That’s on the condition that Riot can secure financing on market terms acceptable to it.
If it can’t, the amount will be offset against rent over the remaining initial lease term, with 12% annual interest added.
What does 12% mean? 📈
The current yield on the U.S. 10-year Treasury is 4.845%.
12% is two and a half times that.
For a project backed by a long-term lease and a publicly traded company, this is the interest rate on its backup financing.
That suggests debt financing for converting mining sites into data centers isn’t cheap.
Another clue is worth watching even more closely.
Riot has already sold most of its Bitcoin.
The proceeds are being used to move into data centers.
The revenue model for miners is being rewritten.
They used to rely on block rewards and transaction fees; now they’re relying on long-term leases.
Cash flow is more stable, but assets are heavier and customers more concentrated.
Anthropic gets a 910 MW foundation for computing capacity, with delivery scheduled through 2028.
Riot gets long-term cash flow, but at the cost of staking its balance sheet on AI capital spending.
The real risk isn’t when the first batch of racks comes online in 2027.
It’s the financing window in between.
If AI capital spending slows or interest rates don’t cooperate,
that 12% could shift from a backup clause to a real cost.
At that point, the rent deductions won’t just eat into the cost of the modules—they’ll eat into profits too.
My take is that we’ll see more deals like this.
Mining sites have power, land, and grid connection permits; AI companies have money and demand.
But the market currently values mining companies based only on computing power, not on their real estate and infrastructure.
Once a second or third company signs a lease on the same scale, that discount may finally be repriced ⚠️
Do you think miners pivoting to AI is a valuation re-rating or the start of another heavy-asset trap?
Let’s talk in the comments 👀
Every day, I bring you the latest in crypto mining and AI computing—not just what’s happening, but the logic and opportunities behind it 👀🚀
Tap the profile picture to watch the livestream
🔭 进群看资金去哪
A filing Riot submitted to the U.S. Securities and Exchange Commission on November 4 shows that its data center lease with Anthropic officially took effect that day.
The Corsicana data center has a critical IT load capacity of 910 MW.
The deal is worth approximately $28 billion.
But there’s a clause in the filing that few people have noticed.
If Riot can’t secure financing,
the cost of the data center modules will be deducted from rent at an annual interest rate of 12%.
Let’s lay out the facts first.
The project will be delivered in three phases.
The first tranche of capacity is targeted to come online by June 28, 2027.
The third phase is scheduled for July 30, 2028.
Riot must repay Anthropic for part of the module costs,
based on the power capacity actually delivered, up to $4 million per MW.
At $4 million per MW, 910 MW comes to a cap of $3.64 billion.
That’s on the condition that Riot can secure financing on market terms acceptable to it.
If it can’t, the amount will be offset against rent over the remaining initial lease term, with 12% annual interest added.
What does 12% mean? 📈
The current yield on the U.S. 10-year Treasury is 4.845%.
12% is two and a half times that.
For a project backed by a long-term lease and a publicly traded company, this is the interest rate on its backup financing.
That suggests debt financing for converting mining sites into data centers isn’t cheap.
Another clue is worth watching even more closely.
Riot has already sold most of its Bitcoin.
The proceeds are being used to move into data centers.
The revenue model for miners is being rewritten.
They used to rely on block rewards and transaction fees; now they’re relying on long-term leases.
Cash flow is more stable, but assets are heavier and customers more concentrated.
Anthropic gets a 910 MW foundation for computing capacity, with delivery scheduled through 2028.
Riot gets long-term cash flow, but at the cost of staking its balance sheet on AI capital spending.
The real risk isn’t when the first batch of racks comes online in 2027.
It’s the financing window in between.
If AI capital spending slows or interest rates don’t cooperate,
that 12% could shift from a backup clause to a real cost.
At that point, the rent deductions won’t just eat into the cost of the modules—they’ll eat into profits too.
My take is that we’ll see more deals like this.
Mining sites have power, land, and grid connection permits; AI companies have money and demand.
But the market currently values mining companies based only on computing power, not on their real estate and infrastructure.
Once a second or third company signs a lease on the same scale, that discount may finally be repriced ⚠️
Do you think miners pivoting to AI is a valuation re-rating or the start of another heavy-asset trap?
Let’s talk in the comments 👀
Every day, I bring you the latest in crypto mining and AI computing—not just what’s happening, but the logic and opportunities behind it 👀🚀
Tap the profile picture to watch the livestream