Texas Governor Election Puts Data Center and Bitcoin Mining in Doubt

Riot Platforms offloaded roughly 79% of its bitcoin over three months, funding AI data center development in Texas. The miner's holdings dropped to 2,418 coins by September 30 from 11,380 in June.

Riot inked a $28 billion AI lease in Texas on Wednesday. The deal was struck a day after voters elected a governor promising to freeze data center permits.

How Riot Emptied Its Bitcoin Stash in One Quarter

Riot disposed of 20,264 bitcoin for approximately $1.5 billion from January through September, according to its third-quarter financial report. The bulk of the proceeds went into building data centers.

Combining its starting stash and the 1,637 coins it mined, the company sold about 10,600 bitcoin during the third quarter alone.

In September, BeInCrypto inquired whether Riot would part with 5,821 coins released after repaying a Coinbase loan. The company currently holds less than half that amount.

The latest agreement leases Riot's entire Corsicana, Texas, facility to a still-unnamed AI laboratory. Including prior arrangements, Riot now holds roughly $38 billion in total rental contracts.

Will Hinojosa Kill Texas Data Centers?

Democrat Gina Hinojosa emerged victorious in the Texas governor election on Tuesday. She is set to assume office in January.

She has vowed to “issue a moratorium on all data center permits until the Legislature can codify regulations,” according to Texas Monthly.

Tonight, I make a solemn promise to every single Texan. Whether you voted for me or Governor Abbott, or felt so betrayed by a broken politics that you did not vote at all.

Hear what Texas said today, loud and clear: Your government belongs to you. And as your governor, I will…

— Gina Hinojosa (@GinaHinojosaTX) November 4, 2026

Jefferies has calculated that a moratorium might jeopardize 13.3 gigawatts worth of potential Texas data center developments.

Texas had already suspended certain approvals. In September, departing Governor Greg Abbott stopped issuing state environmental permits for data centers pending a grid audit. Bracewell, a law firm, anticipates the audit will be completed by mid-December.

Hinojosa's Plan May Not Block Every Project

Her policy proposals for legislators center on conditions rather than outright prohibition. These include eliminating subsidies and mandating evidence that residential power and water costs will not increase, according to her campaign.

Riot stated that under the Corsicana lease, the lessee covers the facility's electricity expenses. In March, OpenAI along with six other technology companies committed at the White House to “build, bring or buy” their own power.

While a governor can give orders to state agencies, altering tax incentives requires legislative action. Riot's financial report makes no reference to the election.

What Riot Shareholders Are Waiting On

RIOT stock jumped 13.9% to $15.97 ahead of Wednesday's opening bell, according to data from Yahoo Finance.

The grid audit is expected in December, and Hinojosa assumes office in January. The initial 400 megawatts from Corsicana are scheduled for September 2027.

Riot is among a number of US mining companies redirecting electricity to AI operations.