New York, Jan 20, 2026, 11:32 EST — Regular session
- Riot shares dropped during late morning trading after bitcoin saw a decline.
- Needham raised its target on RIOT following the AMD data-center lease, which reignited interest in the hosting strategy.
- Traders are keeping an eye on whether the new contract work will help dampen crypto-driven volatility.
Shares of Riot Platforms dropped 2.8% to $18.70 in late morning trading Tuesday, dragged down by a dip in bitcoin and a broader selloff in crypto-related stocks. Bitcoin, the largest cryptocurrency, slid roughly 2.9%. Miners Marathon Digital and CleanSpark also fell, while AMD bucked the trend and climbed.
This shift is significant as Riot aims to generate revenue beyond just the coin price. While miners continue to trade like leveraged bets on bitcoin, the market is beginning to favor operators who lease power and facilities to major computing clients.
RIOT’s caught in a bind: the stock still reacts sharply to bitcoin’s moves, even though its business model suggests it shouldn’t. The real issue? Timing—whether its hosting operations are generating genuine revenue or just filling out a pitch deck.
Needham bumped its price target on Riot to $30 from $28 on Tuesday, maintaining a Buy rating. The firm highlighted the impact of Riot’s new AMD lease, which is expected to generate high-performance computing (HPC) revenue—key for AI training and other heavy compute tasks. According to the broker, the lease economics are “significantly lower than peers” but remain cost-effective, with capital spending estimated at around $3.6 million per megawatt of “critical IT load,” a standard metric data-center operators use to gauge usable server power. 1
On Jan. 16, Riot announced it purchased the land beneath its Rockdale, Texas facility for $96 million, financing the deal by offloading roughly 1,080 bitcoin from its holdings. The company also inked a 10-year lease for a data center with AMD, which is expected to bring in about $311 million in contract revenue. Riot plans to roll out the initial 25-megawatt phase in stages, aiming for full completion by May. The project should contribute around $25 million annually in net operating income. “This partnership represents a validation of Riot’s infrastructure,” said CEO Jason Les. 2
Tuesday’s drop coincided with a shift toward caution. Tariff threats linked to a Greenland dispute triggered a selloff in U.S. assets, and IG market analyst Tony Sycamore highlighted “fears of prolonged uncertainty” driving investors to reduce exposure. 3
Bitcoin continues to set the pace for Riot. When the token’s price slips, investors often lower their expectations for mining profits and scrutinize funding requirements and power expenses more closely, even with a hosting contract in place.
The AMD lease shifts the narrative somewhat, but it won’t flip the tape immediately. Data-center projects move slowly, demand heavy capital, and come with milestones that often get delayed. Meanwhile, miners are still figuring out how to market that product.
The risk is clear: if bitcoin remains under pressure and the retrofit drags on or runs over budget, the hosting pivot won’t kick in quickly enough to counter typical crypto swings. Much of the potential upside hinges on follow-on tenants and options that aren’t assured.
Investors are now focused on the upcoming batch of company earnings and any fresh leasing news. MarketBeat’s earnings calendar pins Riot’s next report for Feb. 23, after the market closes. 4
