RIOT Q3: New $28Bn Corsicana deal at superior economics

Riot Platforms (RIOT) reported its Q3 results yesterday. RIOT has secured 15-year powered land lease with a leading AI lab for 910 IT MW against $28Bn total contract revenue, representing the entire Corsicana site. The operating profile (triple net, ~99% margin) and capital profile (33% unlevered yield on cost) are among the best (~2x better economics vs. prior industry leases) we have seen so far in the emerging AI developers space. Overall, RIOT now has leased 1.15 IT GW against $38 Bn total contracted revenue across 10-20 years deal terms. Execution remains on track for existing Rockdale contracts, with delivery ramping up by June 2028e. We expect securing the required financing ($6-7Bn project debt required for the contracted portfolio) at favourable market terms is the next catalyst for Riot that would demonstrate its ability to convert the signed MWs into billable capacity.