Riot Platforms stock initiated with Outperform rating at Citizens

Investing.com - Citizens initiated coverage on Riot Platforms (NASDAQ:RIOT) with a Market Outperform rating and a $25.00 price target on Wednesday, representing nearly 80% upside from the current price of $13.94. The stock is currently trading below its InvestingPro Fair Value, suggesting potential for appreciation.

The research firm highlighted that Riot’s conversion process from bitcoin mining to data center services is well underway, as revealed during the company’s third-quarter 2025 earnings results. This strategic pivot comes as Riot posted revenue of $637.16 million over the last twelve months, with impressive year-over-year growth of 103.62%.

Riot Platforms presented a comprehensive plan to repurpose power currently allocated to bitcoin mining operations to service the data center market, which Citizens believes is facing a worsening power supply shortage.

Citizens noted that while many bitcoin miners transitioning to high-performance computing (HPC) emphasize their experienced data center management teams, Riot Platforms differentiates itself primarily through its existing assets.

The firm stated that Riot’s future success will depend on execution with its developing customer base and how effectively it can "repeat cycles of the valuation flywheel."

In other recent news, Riot Platforms reported impressive third-quarter earnings, with revenues reaching $180.2 million, surpassing the forecasted $169.24 million. The company achieved an earnings per share (EPS) of $0.26, significantly higher than the anticipated -$0.16, marking a substantial earnings surprise. Following these results, Needham raised its price target for Riot Platforms to $28.00 from $19.00, maintaining a Buy rating, highlighting the company’s strong performance. Riot Platforms’ adjusted EBITDA for the quarter was $64 million, exceeding Needham’s estimate of $57 million, driven by better-than-expected engineering revenues.

In October 2025, Riot Platforms produced 437 bitcoin, a 14% decrease compared to the same month last year, and sold 400 bitcoin, generating net proceeds of $46.0 million. Despite these positive financial results, Riot’s stock experienced a decline in regular and aftermarket trading. These developments come amidst a broader sell-off in cryptocurrency-related stocks as Bitcoin’s value fell below the $100,000 mark. Riot Platforms, along with other major crypto companies, experienced significant stock declines during this period.

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