JPMorgan & Citi Up Riot Platforms Bitcoin Miner on AI & HPC
JPMorgan and Citi have both upgraded Riot Platforms, the leading bitcoin miner, on expectations of strong AI-driven high-performance computing (HPC) colocation revenues. JPMorgan raised its rating to overweight from neutral and lifted its price target to $19 (from $15), while Citigroup upgraded to buy with a $24 target, citing partnerships like FluidStack and planned capacity as upside drivers. After an initial 5.3% pre-market jump, Riot Platforms’ shares traded at $16.55, down 1.2% on the day. Both banks downgraded fellow miners: IREN to underweight over deal-execution risks and CleanSpark to neutral due to priced-in expansion risks. JPMorgan retains buy ratings on Cipher Mining (CIFR, $12 target) and Marathon Digital (MARA, $20 target). It assigns a 50% probability of near-term HPC contracts for Riot Platforms, CIFR and IREN, valuing each at $3.7M–$8.6M per megawatt. Traders should monitor AI/HPC integrations and colocation deal progress as key catalysts for miner stocks.
Bullish
Broker upgrades from JPMorgan and Citigroup signal strong confidence in Riot Platforms’ AI-driven HPC strategy. In the short term, raised price targets ($19 from JPMorgan, $24 from Citi) and upgraded ratings often spur buying pressure, likely leading to share price appreciation. Long term, securing AI/HPC colocation deals could create diversified, high-margin revenue streams, supporting sustained valuation uplift. Downgrades of peers like IREN and CleanSpark further cast Riot Platforms as a top pick amid sector consolidation. While contract execution and capacity expansion risks persist, the overall sentiment is bullish for Riot Platforms’ stock and its role in bitcoin mining.