As crypto continues to struggle, some Bitcoin mining companies have retrofitted their facilities to power AI. Riot Platforms (NASDAQ: RIOT) just entered into a $9 billion agreement to provide AI compute to Anthropic. Here’s why AI is key to valuing crypto-mining companies. <\/p>\n
Crypto<\/a> mining facilities have several key advantages when it comes to becoming an AI data center. For one, they already have a significant head start: They have secured land for a data center, are connected to the power grid, and are up and running. New data centers have received significant pushback from the public due to environmental issues and the threat AI could pose to humanity. <\/p>\n Still, making the transition is not necessarily easy. The hardware used by Bitcoin miners does not work for AI, so these miners need to secure graphics processing units (GPUs)<\/a> from companies like Nvidia, as well as different fans to keep the chips cool. <\/p>\n Given that the software and infrastructure needs differ, this may also require new personnel to operate effectively. Power consumption and its management also differ for AI, and Bitcoin mining companies may need new permits to operate an AI data center. <\/p>\n But for those that successfully make the transition, the rewards can be immense. <\/p>\n Riot’s $9.1 billion deal with Anthropic is for an initial 20-year term at its Rockdale, Texas, campus. There are also two five-year extensions at Anthropic’s option, which could translate into an additional $7 billion of revenue. <\/p>\n This follows an earlier deal this year in which Riot agreed to lease 25 megawatts (MW) of compute capacity to Advanced Micro Devices, with the potential to expand to 200 MW of critical IT load capacity. Riot’s deal with Anthropic is for 191 MW of capacity. <\/p>\n The company generated only about $23 million in revenue from its data center division in the second quarter, but you can see how that’s going to ramp up quickly: $9 billion over 20 years, split evenly, is about $450 million per year. Riot had roughly $174 million of total revenue in the second quarter. <\/p>\n Story Continues <\/p>\n Valuing these stocks based on potential compute <\/p>\n A major way many investors are valuing neocloud stocks serving AI companies like Anthropic and OpenAI is by looking at total capacity and determining how much they can charge for it, which can help them model total revenue. <\/p>\n Much more goes into that because companies also have to bring all their capacity online to monetize it, which presents its own challenges. And the data center business is capital-intensive, so investors need to assess the potential returns on investment. <\/p>\n The amount data centers can charge for compute may change over time, based on supply and demand. While I don’t know the full details of the Riot-Anthropic deal, I suspect Anthropic is not contractually obligated to pay for all 20 years and has the flexibility to exit the deal. <\/p>\n For instance, Anthropic signed a huge compute deal with Space Exploration Technologies, under which it could pull out with 90 days’ notice. <\/p>\n Still, looking at Riot, the company could have upside, given its 1.7 gigawatts of fully approved compute capacity. The company trades at a $7.1 billion market cap. <\/p>\n Another Neocloud, Nebius, has a roughly $75.5 billion market cap and plans to have 800 MW to 1 GW of power online by the end of the year. However, Nebius also plans to have 5 GW of contracted power by year’s end and then plans to bring 1 GW of power online per year starting in 2027. <\/p>\n So there’s a reason for Riot’s discount, but you can see how contracted power and actual capacity brought online are everything for neocloud stocks, and thus the Bitcoin miners are trying to become neoclouds. <\/p>\n Should you buy stock in Riot Platforms right now? <\/p>\n Before you buy stock in Riot Platforms, consider this: <\/p>\n The Motley Fool Stock Advisor analyst team just identified what they believe are the\u00a010 best stocks<\/a> for investors to buy now\u2026 and Riot Platforms wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. <\/p>\n Consider when Netflix made this list on December 17, 2004… if you invested $1,000 at the time of our recommendation,\u00a0you’d have $421,511!* Or when Nvidia made this list on April 15, 2005… if you invested $1,000 at the time of our recommendation, you’d have $1,381,960!* <\/p>\n Now, it’s worth noting\u00a0Stock Advisor’s total average return is 981% \u2014 a market-crushing outperformance compared to 216% for the S&P 500.\u00a0Don’t miss the latest top 10 list, available with\u00a0Stock Advisor, and join an investing community built by individual investors for individual investors. <\/p>\n See the 10 stocks \u00bb<\/a> <\/p>\n *Stock Advisor returns as of August 16, 2026. <\/p>\n Bram Berkowitz<\/a> has positions in Bitcoin. The Motley Fool has positions in and recommends Advanced Micro Devices, Bitcoin, and Nvidia. The Motley Fool has a disclosure policy<\/a>. <\/p>\n<\/a> Image source: Getty Images. Making the conversion comes with rewards <\/p>\n