Is RIOT a good stock to buy? We came across a bullish thesis on Riot Platforms, Inc. on The Analyst’s Journal’s Substack by RA_Capital. In this article, we will summarize the bulls’ thesis on RIOT. Riot Platforms, Inc.’s share was trading at $13.38 as of March 20th. RIOT’s trailing and forward P/E were 27.24 and 20.88 respectively according to Yahoo Finance.
Riot Platforms Inc. ($RIOT) represents a high-risk, high-reward investment at the intersection of Bitcoin mining and AI infrastructure development. The company has strategically pivoted from pure cryptocurrency mining to a dual revenue model, combining Bitcoin production with hyperscale data centre leasing, leveraging its 1.7 GW of low-cost, fully approved power capacity across Texas. Riot operates the Rockdale and Corsicana facilities, which are among the largest in the U.S., and recently secured a 10-year, $311 million lease with AMD, with potential expansions bringing the contract value to $1 billion.
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Bitcoin mining remains the core revenue driver, accounting for 92% of 2024 revenue, with a 17,722 BTC treasury valued at approximately $1.65 billion, providing significant balance sheet strength and exposure to Bitcoin appreciation. The engineering subsidiary, ESS Metron, contributes additional revenue and vertical integration, supporting both mining and data centre build-outs with a $118.7 million backlog. Riot delivered record 2024 results, generating $376.7 million in revenue and $109.4 million in net income, achieving profitability for the first full year, while maintaining industry-leading efficiency with power costs of 3.4¢/kWh.
The company’s emerging data centre segment offers substantial optionality, with over 1.3 GW of unutilized power available for hyperscale tenants, positioning Riot to capture the growing AI/HPC demand.
Key risks include Bitcoin price volatility, execution challenges in retrofitting facilities for AI workloads, tenant concentration with AMD, and competitive pressures from both miners and established data centre operators. Despite these risks, Riot offers asymmetric upside through its dual optionality, scarce Texas power assets, AMD validation, and improving fundamentals, making it a speculative buy with a 12-month target of $24–28 and potential 24-month upside to $30–40 in bull scenarios.
Previously, we covered a bullish thesis on IREN Limited (IREN) by Anxious-Criticism652 in May 2025, which highlighted the company’s pivot from Bitcoin mining to a hybrid AI/crypto model, modular high-density infrastructure, and zero-debt balance sheet. IREN’s stock price has appreciated by approximately 352.74% since our coverage. RA_Capital shares a similar view but emphasizes Riot Platforms’ dual revenue model, AMD lease validation, and 1.7 GW Texas power capacity as key growth drivers.
Riot Platforms, Inc. is not on our list of the 40 Most Popular Stocks Among Hedge Funds. As per our database, 55 hedge fund portfolios held RIOT at the end of the fourth quarter which was 57 in the previous quarter. While we acknowledge the risk and potential of RIOT as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than RIOT and that has 10,000% upside potential, check out our report about this cheapest AI stock.
Disclosure: None.
