Riot Platforms is selling bitcoin to help fund its AI data center buildout, but a pledge by Texas’ governor-elect to pause all data center permits has cast uncertainty over approvals. The policy’s impact will depend on how it is put into effect, and could affect the pace of crypto miners’ shift into AI infrastructure.
Riot cut its bitcoin holdings by about 79%
Riot’s bitcoin holdings fell from 11,380 in June to 2,418 on September 30, a decline of about 79% in three months. The company’s third-quarter results show that it sold 20,264 bitcoin from January through September, generating about $1.5 billion, with the proceeds directed mainly toward data center construction.
Riot mined 1,637 bitcoin over the same period. Based on the change in holdings between the start and end of the period, the company sold an estimated 10,600 bitcoin in the third quarter alone. The sales have provided funding for its construction plans while shifting its asset allocation away from bitcoin holdings and toward data center operations.
$28 billion AI lease puts permit outlook in focus
On Wednesday, Riot signed an AI lease valued at $28 billion. Following the agreement, the total value of its contracted AI rents rose to $38 billion. The deal underscores the company’s plans to expand its AI data center business, while making the ability to secure permits for new projects in Texas more consequential.
The state’s governor-elect has pledged to halt all data center permits. No details have been provided on how the pledge would be implemented, or whether it would affect Riot’s signed lease, projects under construction or existing permits. The potential impact on project timelines and contract performance therefore remains unclear.
Miners’ AI pivot depends on permits and construction
Riot’s funding strategy illustrates how bitcoin miners can sell digital assets to support capital-intensive data center projects. The shift also exposes them to new permitting and execution risks. For investors, the value of signed leases does not mean projects are already built or that revenue has been realized; permitting and construction progress remain important to assessing the business.
Riot has substantially reduced its bitcoin holdings and signed a new AI lease, while Texas’ governor-elect has proposed pausing data center permits. The policy details and any effect on Riot’s projects remain to be seen.