JPMorgan Upgrades Riot Platforms Following Landmark AI Data Center Deal

JPMorgan analysts maintained an Overweight rating on the stock, noting that the 20-year lease for 191 megawatts of capacity at Riot’s Texas-based Rockdale campus provides the company with attractive economics. This optimism is shared by Morgan Stanley, which recently issued an aggressive price target of $43, suggesting substantial upside from current trading levels. The facility, already equipped with 700 megawatts of power, is central to Riot’s strategy of transitioning from pure-play Bitcoin mining to a diversified data center provider.

While the market reacts to the long-term revenue potential, the stock faces immediate technical hurdles. Trading near $19.91, RIOT must clear the $20.48 resistance level to sustain its recovery. Failure to hold this mark could invite further testing of support near $18.50. Despite the bullish sentiment from analysts, the company's financial results reflect the ongoing transition; while total revenue grew 14% year-over-year in the second quarter, Bitcoin mining remains the primary driver of income as the newly signed contracts move through the multi-year construction phase. To support the project, Riot has already secured a $573 million loan, signaling that the company is prioritizing the build-out of its AI infrastructure to secure its long-term growth trajectory.