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Monday, Riot Platforms (NASDAQ:RIOT) received a reaffirmation of its Overweight rating and a $21.00 price target from Cantor Fitzgerald. Currently trading at $7.95, the stock appears undervalued according to InvestingPro analysis, with analyst targets ranging from $13 to $23. The endorsement follows Riot’s recent announcement on Friday that it has entered into a term sheet to acquire assets from Rhodium and has reached a settlement in an ongoing legal dispute.
The settlement agreement has significant financial implications for Riot Platforms, as it will allow the company to terminate a costly hosting contract with Rhodium. The contract, which had six years remaining, was a $15 million annual expense for Riot in 2024. By ceasing support for this contract, Riot could potentially save upwards of $90 million over the contract’s anticipated duration. With a current ratio of 3.74 and moderate debt levels, InvestingPro data shows the company maintains strong liquidity to support its operations.
Moreover, the resolution of this issue releases 125 megawatts (MW) of power, which Riot can now allocate to enhance its Bitcoin mining operations or for the development of Artificial Intelligence/High-Performance Computing (AI/HPC) at its Rockdale facility. If the company chooses to dedicate this newly available power to self-mining, it is projected to significantly increase its Bitcoin mining capacity, potentially adding more than 5 exahashes per second (EH/S) at Rockdale. The company has demonstrated strong revenue growth of 34.2% over the last twelve months, with analysts expecting continued sales growth this year.
In addition to these operational benefits, Riot Platforms is expected to reduce its legal expenses, which were estimated to be around $5 million per quarter. The settlement not only resolves the ongoing litigation but also removes the associated overhang on Riot’s shares, which has been of concern to investors.
The agreement further enhances the attractiveness of the Rockdale site for AI/HPC development, as it eliminates the complexities of having multiple parties and legal disputes associated with the location. The resolution of the legal matter is also expected to facilitate the process of finding tenants for the site, which could have been hindered by the unresolved legal issues. For deeper insights into Riot’s financial health and growth prospects, including 15+ additional ProTips and comprehensive valuation metrics, visit InvestingPro.
In other recent news, Riot Platforms has reported significant financial and operational developments. The company announced a 34% increase in total revenue for 2024, reaching $376.7 million, alongside a net income of $109.4 million, a substantial improvement from the previous year’s loss. Riot Platforms mined 470 Bitcoin in February 2025, marking a 12% increase year-over-year, although a decrease from January’s production. The company also revealed its end-of-year 2025 hash rate goal of 38 exahashes per second, up from 33.5 EH/s at the end of January.
Cantor Fitzgerald adjusted its price target for Riot Platforms to $21, maintaining an Overweight rating, following the company’s notable 105% year-over-year surge in Bitcoin mining revenue in Q4 2024. Needham also revised its price target to $13.50 but kept a Buy rating, citing higher-than-expected expenses that affected adjusted EBITDA. H.C. Wainwright maintained its $17 target and Buy rating, highlighting Riot’s plans for high-performance computing (HPC) and artificial intelligence (AI) strategy.
Riot Platforms is actively assessing its Corsicana facility’s potential for AI and HPC applications, with plans to expand its power capacity to 600 megawatts by early 2026. The company is also engaging with financial advisors to explore partnerships in the AI/HPC sector. Despite these developments, Riot Platforms experienced a reduction in power credits and a slight increase in power costs, which the company is addressing through strategic improvements in operational efficiency.
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