Riot Platforms upgrade reflects lease-driven upside in digital infrastructure
Riot Platforms is gaining fresh support from Wall Street as investors assess the earnings potential of a new powered land lease tied to its Corsicana site. Jefferies says the structure could lower capital spending and execution risk while supporting stronger returns over a 15-year term starting in September 2027.
Highlights
- Jefferies upgraded Riot Platforms to buy from hold, raising the price target to $28, pointing to a 59% upside from Monday’s close.
- The Corsicana powered land lease yields an average 33%, cuts capital expenditure per IT megawatt to about $6 million, and is valid for 15 years from September 2027.
- Powered land structure enables Riot to fund development through project debt or a rent-credit tenant, halving usual capital needs and reducing execution risk.
Jefferies outlines lease economics and rating change
As reported by CNBC, citing Jefferies, the investment firm upgraded Riot Platforms to buy from hold and raised its price target to $28 from $13, implying 59% upside from Monday’s close. Analyst Jonathan Petersen says the Corsicana powered land lease offers highly favorable economics, with an average 33% yield and lower capital intensity than a typical data center build.Petersen says the arrangement lets Riot monetize the site with less execution and financing risk. He adds that the powered land structure cuts capital expenditure to about $6 million per IT megawatt, compared with roughly $11 million to $15 million for a standard data center build.
The lease is valid for 15 years beginning in September 2027. Jefferies says Riot can fund the project through project debt or through a tenant in exchange for a rent credit, a structure the firm views as supporting returns at about half the usual capital requirement.
Market backing and sector implications
Jefferies describes the Corsicana agreement as a potential reset for the market, arguing that pairing ready power with a tenant’s modular solution can improve speed to market. The firm also says the structure reduces Riot’s capital needs and shifts meaningful execution risk to the tenant.The call aligns with broader Wall Street sentiment on the company. LSEG data shows all 23 analysts covering Riot rate the stock either buy or strong buy, while the shares are up 39% year to date.
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