Northland reiterates outperform rating for Riot Platforms stock

On Tuesday, Northland analysts reaffirmed their Outperform rating for Riot Platforms (NASDAQ: NASDAQ:RIOT) stock, maintaining a price target of $15.00. According to InvestingPro data, analysts’ targets range from $9 to $22, with the stock currently trading slightly below its Fair Value. This decision follows the company’s strategic hire of Gibbs as Chief Data Center Officer, a move aimed at enhancing their data center capabilities. The stock has shown significant volatility, with a beta of 4.54 and a 30% decline over the past six months.

Riot Platforms has been focusing on the development and leasing of an AI/HPC data center, as highlighted in their first-quarter 2025 call. The company is looking to capitalize on the growing demand for hyperscaler services, supported by strong revenue growth of 60% in the last twelve months. With Gibbs’ appointment, who brings over 15 years of experience in designing and constructing data centers, Riot aims to secure high-quality tenants under favorable lease agreements. For deeper insights into Riot’s financial health and growth prospects, InvestingPro subscribers can access 12 additional exclusive ProTips and comprehensive analysis.

The company is poised to expand its operations with a pipeline of over 1.7 GW of power available near major markets. Riot Platforms was expected to finalize the acquisition of an additional 355 acres around Corsicana in May, which would allow for flexible HPC design and potentially utilize the entire ~1 GW of available power. The feasibility study results from Corsicana were promising, and the company is actively working with advisors to proceed to market.

Riot’s new data center platform represents a strategic shift to leverage its assets beyond Bitcoin mining. This move aims to unlock value from its land and power portfolio, driven by the rising demand for digital infrastructure. Gibbs’ previous experience includes leading the development of over ~1 GW of capacity across North America, Europe, and Asia, managing projects with a combined investment exceeding $17 billion.

In other recent news, Riot Platforms reported its first-quarter 2025 earnings, revealing a revenue of $161.4 million, which surpassed analyst forecasts of $157.9 million. Despite this revenue beat, the company recorded a net loss of $296.4 million, reflecting ongoing challenges in profitability. The company’s Bitcoin mining operations contributed significantly to the revenue, generating $142.9 million, a 13% increase from the previous quarter. Additionally, Riot Platforms mined 463 Bitcoin in April 2025, a 23% increase from the previous year, although it marked a decrease from the previous month. The company also appointed Jonathan Gibbs as its new Chief Data Center Officer, aiming to expand into the digital infrastructure market. Riot Platforms is actively developing an AI data center at its Corsicana facility, with plans to secure a major tenant and explore financing options. Furthermore, the company completed the acquisition of assets from Rhodium, enhancing its power capacity and terminating all related litigation. These developments indicate Riot’s strategic focus on diversifying beyond Bitcoin mining and strengthening its infrastructure capabilities.

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