Riot's $9.1B Anthropic Deal Shifts Wall Street's Focus From Bitcoin to AI

Riot Platforms is trading at around $22 per share, but Bernstein believes it could reach $35 over the next 12 months following the company's reported $9.1 billion AI infrastructure agreement with Anthropic.

That target implies roughly 55% upside from current levels. The bigger story, however, isn't the analyst upgrade. It's why Bernstein believes the stock deserves a higher valuation.

According to the investment bank, 84% of Riot's enterprise value now comes from its AI colocation business, compared with just 11% from Bitcoin mining and 5% from its Bitcoin holdings. For one of the industry's largest publicly traded miners, artificial intelligence has overtaken Bitcoin as the primary investment story.

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AI Is Becoming Riot's Biggest Business

The change follows Riot's reported 20-year agreement to provide 191 megawatts of AI computing capacity from its Rockdale, Texas campus to Anthropic, one of the world's leading AI companies.

The contract is expected to generate $9.1 billion in revenue through June 2048, with two optional five-year extensions increasing its potential value to $16.1 billion. Riot shares surged after the announcement as investors welcomed what could become one of the largest AI infrastructure agreements signed by a company that began life as a Bitcoin miner.

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The market is beginning to reward those efforts. Rather than comparing miners by hash rate and Bitcoin production alone, investors are increasingly comparing megawatts under contract, long-term AI customers and recurring infrastructure revenue.

A New Way to Value Bitcoin Miners

The transition won't be cheap. Bernstein estimates Riot will still need approximately $3.7 billion in additional financing to complete its planned AI data center expansion, making execution and funding the company's biggest challenges.

Even so, Riot's latest agreement highlights a fundamental change in how the market values Bitcoin miners.

Published on Blockster

Riot's $9.1B Anthropic Deal Shifts Wall Street's Focus From Bitcoin to AI