Key Highlights:
- Riot Platforms has finalized a massive $28 billion deal with Claude developer Anthropic to convert 910 megawatts of its Corsicana, Texas site into AI infrastructure.
- Total project costs are projected at $5.5 billion, which includes up to $3.6 billion to reimburse Anthropic for datacenter construction, carrying a potential 12% interest rate.
- Once fully operational by July 2028, Riot anticipates generating approximately $1.8 billion in average annual rent over a 15-year term.
Riot Platforms Partners With Anthropic in Landmark $28 Billion AI Agreement
In a major strategic pivot, bitcoin mining firm Riot Platforms has entered into a $28 billion agreement with artificial intelligence developer Anthropic. The deal involves repurposing Riot Platforms’ expansive energy assets in Texas into specialized artificial intelligence campuses. Under the contractual terms, Riot Platforms faces the prospect of paying the Claude creator a 12% interest rate on billions of dollars in construction expenses as the facilities are built out.
The contract designates 910 megawatts of power capacity at Riot Platforms’ Corsicana facility to support Anthropic’s computing operations. The deployment will occur in scheduled stages, with complete operational capacity slated to arrive through July 2028. The operational structure establishes that Riot Platforms is responsible for providing the primary land and electrical grid connections, while Anthropic will handle the installation and day-to-day management of its proprietary computing hardware. Once the Corsicana campus is completely activated, Riot Platforms projects an average annual rental revenue of approximately $1.8 billion across the initial 15-year lease.
Projected Capital Expenditures and Complex Debt Financing
According to an earnings presentation published by Riot Platforms on Wednesday, transforming the Corsicana campus will require an estimated $5.5 billion in capital expenditures. Approximately $1.8 billion of this outlay is budgeted for Riot Platforms’ dedicated site preparation and electrical infrastructure improvements. The remaining capital—up to $3.6 billion—is earmarked to reimburse Anthropic for the construction of its specialized datacenter facilities.
These capital reimbursements to Anthropic are tied directly to actual eligible construction costs. The financial obligations become payable sequentially as each development phase reaches completion and begins generating rental revenue. To satisfy these massive obligations, Riot Platforms intends to fund the majority of the buildout through third-party debt. The company’s internal financing projections anticipate lenders underwriting 80% to 90% of the aggregate development costs, which would require Riot Platforms to contribute an estimated $500 million to $1.1 billion in direct equity cash. The formal process to secure this debt financing is scheduled to begin in 2027.
Why This Matters
The multi-billion-dollar transaction marks one of the most significant energy transitions within the digital asset industry, as prominent cryptocurrency miners increasingly reposition their high-capacity power assets to meet the computing demands of generative AI. By locking in a 15-year enterprise tenant in Anthropic, Riot Platforms seeks to diversify its balance sheet away from volatile crypto mining economics and into long-term infrastructure cash flows. However, the capital-intensive arrangement introduces substantial financing risks, as Riot Platforms will rely heavily on private credit and institutional debt markets in 2027 while absorbing a steep 12% interest rate structure on datacenter buildout expenses.
Frequently Asked Questions
What are the primary terms of the Riot Platforms and Anthropic deal?
The $28 billion transaction spans a 15-year initial term and allocates 910 megawatts of power at Riot Platforms’ Corsicana, Texas campus. Riot Platforms provides the land and electrical utilities, while Anthropic installs the computing hardware. Riot Platforms projects approximately $1.8 billion in average annual rent once full operations commence.
What will it cost Riot Platforms to construct the Corsicana facility?
The total projected cost stands at roughly $5.5 billion. Riot Platforms is spending about $1.8 billion on electrical and site groundwork, while up to $3.6 billion is designated to reimburse Anthropic for datacenter construction as phases are delivered, potentially carrying a 12% interest rate.
How does Riot Platforms plan to finance the project?
Riot Platforms plans to secure debt covering 80% to 90% of the total project cost, leaving the company to fund between $500 million and $1.1 billion in cash equity. The formal financing process is slated to begin in 2027.
