Riot Platforms completed its transfer of digital-asset custody from NYDIG to BitGo on October 29, according to a November 4 SEC filing. The change comes as Riot sells Bitcoin to help pay for a major data-center expansion, a separate strategic move whose projected scale still raises questions.
- Riot said it paid no early termination penalty to NYDIG.
- The BitGo agreement generally requires segregated accounts and allows Riot to exit early without a fee.
- Riot reported selling 20, 264 BTC in the first nine months of 2026, primarily to fund data-center development.
- Riot’s reported capacity and contract-value totals do not fully match the figures in its two named site agreements.
Riot changes Bitcoin custodians
Riot’s SEC filing says the transfer to BitGo Bank & Trust was completed on October 29, automatically ending the company’s custody agreement with NYDIG Trust Company LLC. Riot said it paid no early termination penalty.
The NYDIG agreement began on November 1, 2023. Riot signed its new BitGo agreement on October 7 and amended it on October 14. The new arrangement covers custody of Riot’s digital assets and cash. Riot retains ownership of those assets.
The agreement generally requires segregated accounts, which hold Riot’s assets separately from other customers’ holdings. It allows exceptions for certain settlement arrangements, where assets may be held in an omnibus account, a shared account used for multiple parties.
BitGo must maintain commercially reasonable insurance coverage, but the filing does not specify a fixed amount or say that all of Riot’s assets would be reimbursed after a loss. The agreement also generally limits BitGo’s liability to custody fees paid or payable during the six months before an event that gives rise to a claim. Exceptions include fraud, willful misconduct and gross negligence.
The initial term is one year, with automatic renewal unless either party gives notice at least 60 days before it ends. Riot can terminate early with 14 days’ written notice and no termination fee. Riot said it would file the full agreement and amendment as exhibits to its annual Form 10-K for the year ending December 31, 2026.
Bitcoin sales help fund the data-center push
Riot’s November 4 third-quarter results say the company sold 20, 264 BTC in the first nine months of 2026, generating approximately $1.5 billion, primarily to finance data-center development. Riot ended September with 2, 418 BTC, valued at about $202 million, and $748.2 million in cash, including restricted funds.
Riot produced 3, 060 BTC in the first half of 2026, according to its second-quarter release, then produced another 1, 637 BTC in the third quarter. That brings reported production for the first nine months to 4, 697 BTC. If the reported sales figure is correct, sales were roughly 4.3 times production, indicating a substantial drawdown beyond the Bitcoin Riot mined during the period. This is not a complete treasury reconciliation: the figures do not account for every possible inflow or explain when the sales took place.
The custody transfer and Bitcoin sales took place amid the same broader strategic shift, but there is no disclosed evidence that one caused the other. Changing custodians is an operational decision. Selling Bitcoin to fund expansion is a capital-allocation choice.
Riot also repaid its Bitcoin-backed credit facility with Coinbase Credit in September, releasing Coinbase’s security interests in pledged assets. Riot had reported 5, 821 BTC held as collateral at the end of June.
Data-center ambitions meet disclosure gaps
Riot describes itself as both a digital-infrastructure company and a Bitcoin miner. Its reported data-center agreements include 191 megawatts (MW) of capacity at its Rockdale, Texas, facility and a 15-year lease covering 910 MW at Corsicana.
Riot has put the Rockdale agreement’s value at $9.1 billion and the estimated initial contract value of the Corsicana lease at $28 billion. The company has also reported 1, 151 MW in contracted data-center capacity and approximately $38 billion in expected revenue over the agreements’ initial terms.
The figures do not add up on their face. The two named agreements total 1, 101 MW, 50 MW below Riot’s reported 1, 151 MW. Their stated values add up to $37.1 billion, not approximately $38 billion. Riot has not explained either difference in its disclosed figures, so those aggregate totals should be viewed with that uncertainty in mind.
The revenue figure is an estimate, not money already earned or necessarily guaranteed. Riot’s forward-looking-statement warnings cite risks including construction delays, permitting, supply-chain and technical problems, financing needs, uncertain demand for large data centers, and changes to leasing arrangements. Contracted capacity also does not mean every facility is built, energized and serving customers.
Mining revenue fell as production rose
Riot reported third-quarter revenue of $181.4 million, up from $180.2 million a year earlier. Bitcoin-mining revenue fell to $116 million from $160.8 million, even as production rose to 1, 637 BTC from 1, 406 BTC in the third quarter of 2025. Production alone does not determine mining revenue. Bitcoin prices and operating costs matter too.
The earnings figures offer another counterpoint to Riot’s expansion plans. The company reported third-quarter net income of $4.034 million, down from $104.480 million in the same quarter of 2025. For the first nine months of 2026, it reported a net loss of $733.613 million, compared with net income of $27.567 million in the same period of 2025.
Riot’s financial tables also report substantial depreciation and amortization, but those figures alone do not explain the nine-month loss. Building a data-center business takes more than signing large leases. Execution, financing and customer demand will determine whether the projected scale turns into lasting returns.
Key questions and answers
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When did Riot complete the transfer to BitGo?
Riot’s November 4 SEC filing says the transfer was completed on October 29. The company paid no early termination penalty to NYDIG.
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Does BitGo own Riot’s Bitcoin?
No. BitGo holds Riot’s assets in custody, but Riot retains ownership under the agreement.
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How much Bitcoin did Riot sell in the first nine months of 2026?
Riot reported selling 20, 264 BTC for approximately $1.5 billion, primarily to fund data-center development.
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Why do Riot’s capacity figures differ?
The 191-MW and 910-MW agreements total 1, 101 MW, 50 MW below Riot’s reported 1, 151 MW. Riot has not explained the difference in its disclosed figures.
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Is Riot’s projected $38 billion in data-center revenue guaranteed?
No. It is expected revenue over the agreements’ initial terms and depends on execution and other factors. The disclosed contract values also do not exactly match the aggregate.
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How much insurance does BitGo provide?
The agreement requires commercially reasonable insurance, but the filing gives no fixed coverage amount.
Riot’s custody switch is straightforward. Its larger bet is not. The company is directing capital toward data centers while mining revenue has fallen year over year and its nine-month results show a substantial loss. The real test is whether Riot delivers the facilities, attracts customers and turns projected revenue into actual business. Impressive headline totals are not enough. BitGo’s institutional services are part of the wider backdrop, but Riot still has to execute its own data-center plans.
