Analysts Bullish on Riot Platforms After Strategic AMD Data Center Deal
Shares of Bitcoin miner Riot Platforms (NASDAQ: RIOT) received a significant vote of confidence from Wall Street this week, as analysts revised price targets upward following the company's newly announced partnership with chip giant AMD.
Keefe Bruyette & Woods analyst Stephen Glagola raised the firm's price target on RIOT to $23 from $16, maintaining an Outperform rating. The move comes after Riot secured a 10-year data center lease and services agreement with AMD at its Rockdale, Texas facility. The deal, covering 25 megawatts of capacity, is projected to generate approximately $311 million in contract revenue over its lifespan.
"This isn't just a real estate transaction; it's a strategic anchor," Glagola noted in his research update. "By dedicating roughly 21% of Rockdale's capacity to a high-quality, long-duration tenant, Riot secures predictable organic demand for its high-performance computing and AI infrastructure ambitions. It also locks in a cost structure that remains competitive against newer, more expensive builds."
The AMD agreement appears to have shifted the narrative for Riot, which has traditionally been viewed primarily through the volatile lens of Bitcoin mining. The deal provides a stable revenue stream that is decoupled from cryptocurrency prices, potentially de-risking the business model. Needham & Company also raised its price target on RIOT earlier in the week, to $30 from $28, citing the attractive economics of the project, which requires a relatively low capital expenditure of about $3.6 million per megawatt.
The analyst actions highlight a growing trend of Bitcoin mining companies leveraging their substantial power infrastructure and operational expertise to diversify into adjacent high-growth fields like AI and cloud computing. For Riot, the AMD partnership represents a concrete step in executing this pivot.
Market Voices: A Split Reaction
Michael Chen, Portfolio Manager at Horizon Capital: "This is exactly the kind of deal that validates the 'infrastructure-plus' thesis for some miners. Riot isn't just selling hash rate anymore; it's monetizing its power contracts and real estate in a smart, forward-looking way. It provides a much-needed hedge."
Sarah Jennings, Independent Tech Analyst: "I'm cautiously optimistic. The revenue visibility is a clear positive, and partnering with a name like AMD adds credibility. However, the market is pricing in a very smooth execution. Integrating a new business line while managing the core mining operations is no simple feat."
David Feld, host of the 'Crypto Uncorrelated' podcast: "Let's not get carried away. This is a decent real estate deal, but it's a drop in the bucket compared to their Bitcoin mining revenue—which is entirely at the mercy of BTC price and hash price. Calling this a transformative 'AI strategy' is a massive stretch. It feels like a narrative pivot to distract from the fundamental risks still on their balance sheet."
Priya Sharma, Data Center Sector Specialist: "The economics noted by Needham are key. At ~$3.6 million per MW, the build-out cost is efficient. In today's environment where power and construction costs are soaring, that low-cost base is a formidable competitive advantage for landing future colocation deals."