Riot Platforms, Inc. (RIOT): A Bull Case Theory 

We came across a bullish thesis on Riot Platforms, Inc. on Valueinvestorsclub.com by jolishwish617. In this article, we will summarize the bulls’ thesis on RIOT. Riot Platforms, Inc.’s share was trading at $15.22 as of December 2nd. RIOT’s trailing and forward P/E were 29.77 and 20.88 respectively according to Yahoo Finance.

Riot Platforms, Inc., together with its subsidiaries, operates as a Bitcoin mining company in the United States. RIOT is emerging as an overlooked opportunity in the transition from Bitcoin mining to high-performance computing (HPC) data centers. While peers such as CORZ, WULF, and APLD have re-rated after signing or signaling HPC deals, Riot stands out due to its 1.86 GW of high-quality, liquid-cooling–ready power capacity across strategic sites and ~$2 billion in Bitcoin holdings, which artificially inflate common enterprise value metrics.

Adjusted for Bitcoin, Riot trades at just $2.57/Watt versus a peer average of $8.58/Watt, making it one of the most undervalued miners. Applying conservative miner-funded HPC economics to Riot’s capacity implies a present value of ~$12 billion, or roughly $38 per share, representing ~115% upside from the current $17.5 stock price.

The macro backdrop reinforces urgency: analysts project >60 GW of incremental data center power demand by 2027–28, while conventional grid expansion would take years. Crypto-to-HPC conversions can deliver power in 18 months, allowing tenants to avoid GPU depreciation and capture substantial value, which they are willing to share with miners like Riot.

Riot’s deliberate approach—prioritizing high-credit tenants such as hyperscalers, completing the technical basis of design, and expanding site capacity—positions the company to negotiate premium $/Watt lease contracts. Governance improvements, including board additions with data center expertise and a new Chief Data Center Officer, further support execution.

Risks include potential changes in lease premiums or temporary Bitcoin price declines, but even conservative scenarios suggest a 30% downside, leaving significant margin of safety. Additional upside could come from rising GPU depreciation costs, growing power scarcity, and appreciation or monetization of Bitcoin holdings. The key near-term catalyst is Riot’s first HPC lease announcement, expected by early 2026, which could validate the business model and trigger substantial re-rating. Riot represents a rare opportunity with low downside, high optionality, and a clear path to value realization.

Previously we covered a bullish thesis on IREN Limited (IREN) by Anxious-Criticism652 in May 2025, which highlighted its pivot from Bitcoin mining to a scalable AI and quantum-ready platform, modular infrastructure, high-margin GPU deployments, and zero-debt balance sheet. The stock has appreciated by 350.87% since coverage. The thesis still stands, while jolishwish617 shares a similar focus but emphasizes Riot Platforms’ undervalued power assets and near-term HPC lease potential.

Riot Platforms, Inc. is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 48 hedge fund portfolios held RIOT at the end of the second quarter which was 35 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.

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Disclosure: None.