So, Riot Platforms (RIOT +13.67%). Up 13.5% today. Thirteen-point-five. You know what that tells me? It tells me people are still throwing money at things. Just… throwing it. They announced they’re buying more land, leasing it to AMD. More data centers. It’s like, they used to dig for digital gold, now they’re renting out the space where other people dig for… whatever AI needs. It’s a pivot. A pivot! Like they suddenly realized mining Bitcoin isn’t the guaranteed path to early retirement they thought it was. Who could have predicted that?
From Digital Shovels to Server Racks
Look, these Bitcoin miners, they built these massive energy-guzzling facilities. All that hardware, all that electricity… for what? To solve puzzles? It’s just… exhausting to think about. Now, suddenly, it’s “Oh, AI needs data centers! Let’s rent this stuff out!” It’s convenient. Almost too convenient. It’s like admitting defeat, but with a press release.
They’re dropping $96 million on 200 acres next to their existing Rockdale, Texas site. Paying with Bitcoin, naturally. Because that makes perfect sense. Trading a volatile cryptocurrency for… more land in Texas. It’s a beautiful cycle of… something. The Rockdale site, apparently, is “North America’s largest Bitcoin mining facility.” Largest! That’s… a statement. Like they’re proud of how much electricity they waste. They have seven buildings. Seven! With “immersion- and air-cooling technology.” Immersion cooling? Sounds… damp. And expensive.
Then they’re leasing 25 megawatts to AMD. Twenty-five. And potentially 200 more. It’s like they’re saying, “We’ve got all this space, and we’ll just… keep adding to it until someone rents it.” The CEO, Jason Les, said it “firmly establishes Rockdale as a leading data center development opportunity.” “Opportunity.” That’s a word. A very optimistic word. I mean, what exactly is the opportunity? To build more servers? To consume more power? I’m just asking questions here.
Cautiously Optimistic? More Like Cautiously Annoyed.
Okay, look, AI is going to be big. Everyone says so. And data centers will be needed. That’s not the point. The point is, this stock is trading at 54 times earnings. Fifty-four! What are they selling, unicorn tears? And the data center business… it’s going to be a commodity. It always is. Everyone will have servers. Everyone will be competing on price. And then where will Riot be? Probably building more immersion-cooled buildings in Texas.
And the whole thing hinges on AI, which, let’s be honest, is a bit of a hype machine right now. It’s not a straight line to the future. There will be setbacks. There will be disappointments. And when that happens, all these data centers… they’ll be just sitting there. Empty. Wasting electricity. So, yeah, I remain cautious. A small, speculative position, maybe. But honestly, I’d rather just put the money in a mattress. At least then I know where it is.
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2026-01-16 21:23