CleanSpark vs Riot Platforms: AI data center revenue competition

Riot Platforms and CleanSpark prioritize long-term data center leases over volatile bitcoin mining rewards. Riot Platforms signed a $9.1 billion, 20-year computing deal with Anthropic this week, leasing 191 megawatts of power at its Rockdale, Texas campus to provide data center space for AI workloads. This deal could reach $16.1 billion if the contract extends twice by five-year increments. This agreement follows a prior deal with AMD, creating a two-tenant campus that generates $9.8 billion of contracted data center revenue. CleanSpark also targets this lucrative market with its Sandersville project. A recently closed $2.276 billion senior secured note agreement funds the Sandersville data center build-out. This specific lease expects to generate $6.6 billion in contracted revenue over its initial term. The company already fully funded the equity portion of that project and pre-paid for long-lead equipment to maintain its schedule. Matt Schultz, the CEO of CleanSpark, stated that the non-dilutive bond financing reflects institutional confidence in their strategy. Both firms aim to turn infrastructure into durable cash flows as bitcoin mining margins tighten.

Bitcoin network dynamics and hashrate

Bitcoin mining difficulty jumped 5.92% to 140.58 trillion at block 971,712 on October 16, 2026. This adjustment follows a period where the network hashrate climbed above 1 zettahash per second. Average block times during the closing epoch dipped to around 567 seconds, which prompted the protocol to increase the work requirement. Miners face tightening margins, forcing a redirect of power toward AI workloads. The network hashrate recently slipped below 1,000 EH/s, marking a nearly 15% decline from the October peak of 1,157 EH/s. The seven-day moving average declined to about 993 EH/s. Hashprice moved from roughly $37 to $40 per petahash per second per day over the last month, though some operators previously prepared for lower prices near $36. Bitmain has responded to these tightening margins by cutting prices on hardware, including a promotion for the S19 XP+ Hydro units. CleanSpark manages an operational hashrate of 50 EH/s with 1.8 GW of power under contract. The company produced 529 bitcoin in September 2026. Its total bitcoin holdings reached 13,530 as of September 30, 2026, with 3,475 bitcoin posted as collateral or receivable. The company also sold 700 bitcoin pursuant to call exercises at an average price of $72,928 per bitcoin.

Regional infrastructure and expansion

CleanSpark expands its footprint across multiple states to secure low-cost energy. The company seeks to add 2.5 EH/s of computing power in Wyoming through ongoing construction and commissioning within the current quarter. In Tennessee, expansion projects at two sites with 60 MW of power expect to add nearly 4 EH/s to total processing. These Tennessee sites participate in the Tennessee Valley Authority demand response program. CleanSpark also acquired 447 acres in Brazoria County, Texas, to develop a large-scale data center that targets an initial 300 MW demand load with a potential expansion to a total capacity of 600 MW. The company previously acquired 271 acres and 285 MW in Austin County to support a next-generation data center campus. Riot Platforms focuses its efforts on its Rockdale, Texas, campus.

Financial health and technical outlook

CleanSpark faces significant financial pressure from its mining operations. Fiscal third-quarter revenue fell 30.5% year over year to $138.0 million. The company also swung to a net loss of $239.8 million from a net income of $257.4 million a year earlier. Adjusted EBITDA fell to negative $113.0 million from a positive $377.7 million in the prior year. In contrast, Riot Platforms beat revenue expectations, reporting $174.2 million against $154.3 million in analyst models. Analyst Michael Donovan reiterated a buy rating for Riot with a $29 price target. Technical indicators for CleanSpark suggest a bearish turn. The 10-day moving average fell below the 50-day moving average on October 08, 2026. The 50-day moving average also moved below the 200-day moving average on October 13, 2026. The Aroon indicator entered a downward trend on October 28, 2026, while the Momentum indicator moved below the 0 level on October 01, 2026. The Stochastic Oscillator suggests a potential reversal, but the MACD turned negative on September 29, 2026. The RSI Oscillator recently exited the oversold zone, but the price growth rating for the company is 88, which is lower than the S&P 500 index. The company’s SMR rating is 98, which indicates weak sales and an unprofitable business model. Hedge funds show a slight preference for Riot. As of Q1 2026, 49 hedge funds held Riot Platforms compared to 37 holders for CleanSpark. You should monitor how these companies manage their debt as they scale. Which company will maintain its momentum as the bitcoin halving effects continue to squeeze mining margins?