Riot Platforms (NASDAQ:RIOT) could have nearly 80% upside as its artificial intelligence infrastructure business increasingly overtakes Bitcoin (CRYPTO: BTC) mining as the company's primary value driver, according to a Bernstein note on Tuesday.
Anthropic Deal as Key Driver Bernstein analysts led by Gautam Chhugani raised their price target on Riot to $35 from $30, maintaining an Outperform rating after the company signed a $9.1 billion data center agreement with a "leading frontier AI lab," reportedly Anthropic.
The 20-year colocation agreement is expected to generate around $457 million in annual recurring revenue.
Bernstein estimates the contract could produce annual net operating income of between $365 million and $411 million, with required capital expenditure of approximately $2.1 billion to $2.3 billion.
Riot has also secured a $573 million interim financing facility from Morgan Stanley to fund initial equipment procurement, The Block reported.
