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Is Riot Platforms' (RIOT) AI Data Pivot Reshaping Its Business Diversification Story?

Simply Wall St · 10/14/2025 10:23
  • Riot Platforms reported unaudited September 2025 results, producing 445 Bitcoin and generating US$52.6 million from Bitcoin sales, while expanding its focus toward data centers and AI infrastructure.
  • This shift highlights the company's efforts to monetize its power capacity beyond mining, broadening its growth drivers as it seeks to secure significant data center clients.
  • We'll explore how Riot Platforms' move toward AI-powered data infrastructure could reshape its earnings outlook and business diversification story.

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Riot Platforms Investment Narrative Recap

To invest in Riot Platforms, you need to believe in the company's vision of evolving from a pure-play Bitcoin miner to a diversified operator in high-demand data center and AI infrastructure. The recent September 2025 production and Bitcoin sales update confirms Riot's continued crypto mining growth, but it does not materially alter the most important near-term catalyst: securing major data center tenants. Delays in landing such clients remain the most significant risk, with revenue diversification hinging on the company's ability to utilize its power assets beyond mining.

The recent appointment of Jonathan Gibbs as Chief Data Center Officer directly connects to Riot's shift toward AI and high-performance computing, which is central to attracting the type of long-term data center leases investors are watching for. Without these large contracts, much of the company’s expanded power capacity could remain underused, leaving anticipated new revenue streams unrealized and return on invested capital under pressure.

However, investors should also recognize the risk if Riot struggles to deliver data center utilization at scale...

Read the full narrative on Riot Platforms (it's free!)

Riot Platforms' narrative projects $992.8 million revenue and $125.7 million earnings by 2028. This requires 22.4% yearly revenue growth and a $220.5 million increase in earnings from the current -$94.8 million.

Uncover how Riot Platforms' forecasts yield a $20.97 fair value, a 3% downside to its current price.

Exploring Other Perspectives

RIOT Community Fair Values as at Oct 2025
RIOT Community Fair Values as at Oct 2025

Six Simply Wall St Community members estimate fair value for Riot Platforms between US$11.79 and US$29.75 per share. While some focus on the company’s expensive valuation, others point to the urgency of converting data center investments into meaningful client revenue as a key performance trigger, review the full range of views for a broader picture.

Explore 6 other fair value estimates on Riot Platforms - why the stock might be worth 46% less than the current price!

Build Your Own Riot Platforms Narrative

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.