Riot Platforms' Digital Infrastructure Pivot Earns Buy Rating
Riot Platforms has initiated its transition from a mining operation to a digital infrastructure provider, and this strategic pivot is showing early promise. Jones Trading initiated coverage on Riot Platforms with a Buy rating and a price target of $30.00, aligning with the high end of the analyst consensus range.
The company began its conversion roughly 18 months ago in response to activist shareholder groups pushing for the redirect of power resources toward AI and HPC applications, moving away from Bitcoin mining which had been the sole focus since late 2017. This shift has resulted in Riot recognizing $33.2 million of AI and high-performance computing revenue in the first quarter of fiscal 2026.
The firm cited the company's multigigawatt power portfolio as a factor in its rating, stating that the AI infrastructure buildout represents the most sustainable path from an institutional investor perspective. Jones Trading noted these governance changes as part of its coverage initiation, including board-level changes introducing four independent directors alongside two company-related members.