Chardan's New Rating#

Chardan has begun covering Riot Platforms (NASDAQ:RIOT) with a Buy rating, setting a price target of $27.50. The firm points to the company's strategic pivot towards artificial intelligence (AI) and high-performance computing as key factors in this decision.

Power Capacity and Financials#

Analyst Bill Papanastasiou highlighted that Riot Platforms has access to 1.7 gigawatts of power capacity in Texas, with full energization expected by the end of the year. Currently, the stock trades at $18.61, and the company has a market capitalization of $7.06 billion. Despite a significant 140% increase in stock price over the past year, Riot remains unprofitable, reporting a loss of $1.95 per share in the last twelve months.

Strategic Advantages#

Chardan describes Riot Platforms as having one of the most attractive portfolios in its sector due to its scale and reliable power supply. The company has secured a high-quality anchor tenant, which is expected to facilitate project financing at lower costs. Riot Platforms also maintains around $1.5 billion in liquidity, including its Bitcoin holdings, to support its operations and capital expenditures.

Valuation Insights#

Chardan's valuation approach includes a sum-of-the-parts analysis, taking into account Bitcoin mining operations, the Bitcoin treasury, and potential AI and high-performance computing ventures. The analysis also factors in over 1,250 megawatts of uncontracted capacity, applying a 16.5x multiple on average lease economics. The Bitcoin mining segment is valued at a 2.5x revenue multiple, leading to the $27.50 price target.

Recent Production and Market Trends#

In its latest update, Riot Platforms reported producing 1,473 bitcoins in the first quarter of 2026, a 4% decrease from the previous year. The company sold 3,778 bitcoins during this quarter, generating $289.5 million in net proceeds. As of March 31, Riot held 15,680 bitcoins, down 18% year-over-year. Additionally, Piper Sandler has raised its price target for Riot shares to $23, citing the company's valuable data center assets in Texas and its potential transition from Bitcoin mining to other data center applications. The recent surge in Bitcoin prices, surpassing $75,000, has also positively impacted cryptocurrency-related stocks, including Riot Platforms.