Riot Platforms' AI Pivot Monetizes Mining Power, Wins JPMorgan, Citigroup Upgrades

Riot Platforms (NASDAQ: RIOT), a vertically integrated Bitcoin mining company, received back-to-back upgrades from JPMorgan and Citigroup in late September 2025, driven by its strategic pivot toward artificial intelligence (AI) and high-performance computing (HPC) infrastructure. JPMorgan raised its price target to $19 from $15 and upgraded the stock to "Overweight" from "Neutral," while Citigroup elevated its target to $24 from $13.75 and assigned a "Buy" rating. Both firms highlighted Riot’s potential to monetize its existing data center and power infrastructure through colocation deals and AI services as a key upside driver CoinDesk - *Riot Gets Double Upgrade on AI Pivot as JPMorgan, Citi Hike Targets*^[1].

The analysts emphasized Riot’s competitive advantages, including its 700 MW Rockdale facility in Texas and the ongoing development of a 1 GW site in Corsicana, which position the company to capitalize on the surging demand for compute power. JPMorgan assigned a 50% probability of securing near-term HPC colocation agreements, benchmarking Core Scientific’s $3.7 million to $8.6 million per gross megawatt (MW) deals CoinDesk - *Riot Gets Double Upgrade on AI Pivot as JPMorgan, Citi Hike Targets*^[1]. Citigroup’s Peter Christiansen noted that Riot’s transition to AI and HPC is a "primary catalyst," leveraging its expertise in managing large-scale, energy-intensive operations originally designed for Bitcoin mining FinancialContent - *Citigroup Elevates RIOT Platforms to ^[2].

The upgrades contrasted with downgrades for peers IREN and CleanSpark, which were cut to "Underweight" and "Neutral," respectively, due to uncertainties around their HPC strategies. JPMorgan cited a 50% probability for each of these firms to secure similar deals but deemed Riot the most attractive in its mining coverage universe. Citigroup also maintained its "Buy" rating on Cipher Mining (CIFR) and reduced its target for MARA Holdings, underscoring divergent valuations among miners CoinDesk - *Riot Gets Double Upgrade on AI Pivot as JPMorgan, Citi Hike Targets*^[1].

Riot’s stock responded positively, surging 5.32% in pre-market trading to $17.63, outperforming a broader sector that had declined sharply. The stock closed at $16.55 on September 26, representing a 1.2% drop for the day but a 112% gain over the prior six months CoinDesk - *Riot Gets Double Upgrade on AI Pivot as JPMorgan, Citi Hike Targets*^[1]. Analysts attributed the bullish outlook to Riot’s ability to diversify revenue streams, reducing reliance on Bitcoin price volatility. JPMorgan estimated HPC colocation contracts could add $3.7 million to $8.6 million per MW, potentially boosting margins as the company transitions from pure-play mining to infrastructure-as-a-service CoinDesk - *Riot Gets Double Upgrade on AI Pivot as JPMorgan, Citi Hike Targets*^[1].

The strategic shift has broader implications for the cryptocurrency and tech sectors. By repurposing its infrastructure, Riot joins a growing trend of miners leveraging their energy and data center assets for AI workloads. This convergence is reshaping competitive dynamics, with traditional data center providers facing new rivals capable of offering cost-effective solutions. Citigroup’s analysis highlighted Riot’s potential to attract institutional capital, given its scalable infrastructure and execution track record FinancialContent - *Citigroup Elevates RIOT Platforms to ^[2].