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BlockchAIn Digital Infrastructure NYSEAMERICAN: AIB outlined a data-center development strategy centered on smaller, power-secured facilities, long-term tenant contracts and project-level financing during a presentation by CFO Jolienne Halisky.

Halisky said the company views itself as a “right-sized developer,” targeting projects below 100 megawatts, with a preferred range of roughly 50 MW to 75 MW. The approach is intended to simplify lease negotiations, equipment procurement and community engagement compared with larger hyperscale developments.

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“We are power first,” Halisky said, explaining that the company does not pursue a site unless it expects assured power availability within 12 months. She contrasted that approach with what the company describes as “maybe power,” or grid capacity that has not been firmly secured.

Power Supply and AI Demand
The presentation emphasized the anticipated expansion of AI-related data-center demand. Halisky cited estimates that global data-center power demand could rise from 82 gigawatts in 2025 to 220 GW by 2030, with AI workloads expected to account for 70% of capacity. She also pointed to projected worldwide data-center electricity use of about 945 terawatt-hours by 2030, compared with 415 TWh currently.

According to Halisky, the company has 120 MW of contracted power under energy service agreements or facilities extension agreements. It also has a tenant contract for 50 MW of critical IT load and five additional sites under evaluation.

She described power availability, hardware supply and capital as key constraints in the AI infrastructure market. While the company does not provide servers or graphics processing units, it aims to develop the building, electrical infrastructure and cooling systems before leasing critical IT capacity to customers that install and operate their own hardware.

Nebius Lease and First Development
AIB Data Centers’ first development is expected to be anchored by Nebius. Halisky said the project has a contracted utility power load of 65 MW and contracted IT load of 50 MW. The lease has an initial 12-year term and two five-year renewal options.

The project is planned as a phased build with two 25-MW data halls. The first hall is expected within 10 months, followed by the second hall roughly four months later. Halisky said the company expects the first phase to begin producing operational cash flow during construction because Nebius is funding the build-out of its white space and paying the company to perform that work.

While she did not disclose all commercial terms, Halisky said the lease is priced above a typical range of $1.8 million to $2.1 million, and that its total value over the life of the agreement is “well over” $1 billion.

The lease includes customer prepayments, which Halisky said are generally equal to one to two years of rent and could total $100 million to $200 million. Those funds will be held in escrow and used for permitted construction-related expenses, she said.

Customer prepayments are expected to support construction funding.
Project-level debt is anticipated by mid-December or early January, according to Halisky.
The company also expects to use preferred equity, either at the project special-purpose vehicle level or platform level.

Halisky said the company raised $63 million in a June follow-on offering and has used proceeds for site work, deposits on long-lead equipment and land-related activity. She said the company does not currently expect to need another common-equity raise for the Nebius project.

Pipeline Includes Texas Development
Beyond its initial South Carolina project, Halisky said the company purchased a Texas site known as DFW One, with the transaction closing in September. The site has 15 MW currently energized and another 40 MW under a facilities extension agreement expected to come online in early 2028. The company has begun marketing the site for a lease and expects it to be its next development.

Construction at DFW One could begin in the first quarter, she said. The company expects a single-tenant arrangement for the property.

Halisky also cited DFW Two, which is under an exclusive letter of intent and could close within 45 days; GSO One, under an exclusive letter of intent with a right to purchase; and MSP One, also under an exclusive letter of intent. Excluding the CLT One project, she said the company’s undeveloped opportunities represent an additional 280 MW, with illustrative annual revenue of $546 million and total contract value of $6.5 billion.

Addressing timing and execution risk, Halisky said the Nebius agreement provides a 30-day grace period for delivery. The first data hall is scheduled for delivery in 10 months and the second in 14 months. The tenant has termination optionality if delivery is delayed more than six months, subject to force majeure and other provisions.

Halisky said the company is targeting a low-double-digit yield on cost for its initial development, though final figures remain subject to design and procurement decisions. She added that AIB typically evaluates about 20 potential land opportunities before reaching a definitive agreement and aims to have 200 MW to 300 MW under contract by year-end.

About BlockchAIn Digital Infrastructure (NYSEAMERICAN:AIB)BlockchAIn Digital Infrastructure Inc is engaged in the digital infrastructure business, providing data center operations and high-performance computing services. The company offers power infrastructure, hosting services, and equipment leasing to customers involved in blockchain computing, artificial intelligence, and high-performance data processing. Its operations include leasing space, power capacity, and equipment within data center facilities, as well as offering modular digital asset mining containers and related hardware and support services.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].

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Riot Platforms, Inc. (RIOT - Free Report) closed at $13.97 in the latest trading session, marking a +1.82% move from the prior day. This move outpaced the S&P 500's daily gain of 0.41%. Meanwhile, the Dow lost 0.07%, and the Nasdaq, a tech-heavy index, added 1.11%.

Shares of the company witnessed a loss of 42.23% over the previous month, trailing the performance of the Finance sector with its loss of 1.68%, and the S&P 500's gain of 1.46%.

The investment community will be paying close attention to the earnings performance of Riot Platforms, Inc. in its upcoming release. The company is predicted to post an EPS of -$0.33, indicating a 226.92% decline compared to the equivalent quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $160.65 million, showing a 10.86% drop compared to the year-ago quarter.

For the full year, the Zacks Consensus Estimates project earnings of -$2.7 per share and a revenue of $670.18 million, demonstrating changes of -38.46% and +3.51%, respectively, from the preceding year.

Investors should also pay attention to any latest changes in analyst estimates for Riot Platforms, Inc. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, there's been a 3.3% fall in the Zacks Consensus EPS estimate. Riot Platforms, Inc. is currently sporting a Zacks Rank of #3 (Hold).

The Financial - Miscellaneous Services industry is part of the Finance sector. Currently, this industry holds a Zacks Industry Rank of 161, positioning it in the bottom 35% of all 250+ industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow RIOT in the coming trading sessions, be sure to utilize Zacks.com.

When deciding whether to buy, sell, or hold a stock, investors often rely on analyst recommendations. Media reports about rating changes by these brokerage-firm-employed (or sell-side) analysts often influence a stock's price, but are they really important?

Let's take a look at what these Wall Street heavyweights have to say about Riot Platforms, Inc. (RIOT - Free Report) before we discuss the reliability of brokerage recommendations and how to use them to your advantage.

Riot Platforms, Inc. currently has an average brokerage recommendation (ABR) of 1.31, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 21 brokerage firms. An ABR of 1.31 approximates between Strong Buy and Buy.

Of the 21 recommendations that derive the current ABR, 16 are Strong Buy and three are Buy. Strong Buy and Buy respectively account for 76.2% and 14.3% of all recommendations.

Brokerage Recommendation Trends for RIOT

Check price target & stock forecast for Riot Platforms, Inc. here>>>

The ABR suggests buying Riot Platforms, Inc., but making an investment decision solely on the basis of this information might not be a good idea. According to several studies, brokerage recommendations have little to no success guiding investors to choose stocks with the most potential for price appreciation.

Are you wondering why? The vested interest of brokerage firms in a stock they cover often results in a strong positive bias of their analysts in rating it. Our research shows that for every "Strong Sell" recommendation, brokerage firms assign five "Strong Buy" recommendations.

This means that the interests of these institutions are not always aligned with those of retail investors, giving little insight into the direction of a stock's future price movement. It would therefore be best to use this information to validate your own analysis or a tool that has proven to be highly effective at predicting stock price movements.

With an impressive externally audited track record, our proprietary stock rating tool, the Zacks Rank, which classifies stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), is a reliable indicator of a stock's near-term price performance. So, validating the Zacks Rank with ABR could go a long way in making a profitable investment decision.

ABR Should Not Be Confused With Zacks RankAlthough both Zacks Rank and ABR are displayed in a range of 1--5, they are different measures altogether.

The ABR is calculated solely based on brokerage recommendations and is typically displayed with decimals (example: 1.28). In contrast, the Zacks Rank is a quantitative model allowing investors to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5.

It has been and continues to be the case that analysts employed by brokerage firms are overly optimistic with their recommendations. Because of their employers' vested interests, these analysts issue more favorable ratings than their research would support, misguiding investors far more often than helping them.

In contrast, the Zacks Rank is driven by earnings estimate revisions. And near-term stock price movements are strongly correlated with trends in earnings estimate revisions, according to empirical research.

Furthermore, the different grades of the Zacks Rank are applied proportionately across all stocks for which brokerage analysts provide earnings estimates for the current year. In other words, at all times, this tool maintains a balance among the five ranks it assigns.

Another key difference between the ABR and Zacks Rank is freshness. The ABR is not necessarily up-to-date when you look at it. But, since brokerage analysts keep revising their earnings estimates to account for a company's changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in indicating future price movements.

Is RIOT Worth Investing In?In terms of earnings estimate revisions for Riot Platforms, Inc., the Zacks Consensus Estimate for the current year has declined 3.3% over the past month to -$2.7.

Analysts' growing pessimism over the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates lower, could be a legitimate reason for the stock to plunge in the near term.

The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #4 (Sell) for Riot Platforms, Inc. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Therefore, it could be wise to take the Buy-equivalent ABR for Riot Platforms, Inc with a grain of salt.

Strategy Inc. lost more than half its value while quietly becoming the world's largest corporate Bitcoin treasury, and one Wall Street analyst thinks that combination sets up a trade most investors are too spooked to touch.

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Strategy Inc. (NASDAQ:MSTR | MSTR Price Prediction) currently trades at $153.37. Wall Street’s average price target is $236.80, which implies 54.4% upside.

Strategy Inc. started as enterprise analytics software. Today it is the world’s largest corporate Bitcoin (CRYPTO:BTC) treasury, holding 846,000 bitcoin. Benchmark analyst Mark Palmer repeated a Buy rating and a $435 target, implying 183.6% upside.

Bitcoin’s Slide Pulled Strategy Inc. Down 53% in a Year Bitcoin’s decline drove the damage. Strategy Inc. lost 53.3% over the past year. Bitcoin fell 32.53% over the same period. With a beta of 3.571, the stock amplifies every move in the coin.

Fair value accounting turned that decline into large paper losses. Over the last three reported quarters, unrealized losses came to $17.44 billion, $14.46 billion and $8.32 billion. Second-quarter EPS of -$24.45 badly missed the $3.07 consensus. At-the-market offerings brought in $8.41 billion, and the firm paid $400.7 million in preferred dividends.

Benchmark’s $435 Call Depends on BTC Yield and a NAV Premium Palmer’s thesis rests on three elements: BTC Yield (bitcoin held per diluted share as the company issues equity and debt to buy more coin), a lasting premium to net asset value, and a software business generating recurring revenue.

Management’s latest figures back parts of the thesis. Subscription revenue grew to $62.86 million from $40.82 million, and the company is targeting a 4.5% BTC Yield this year. CEO Phong Le said the company “reduced our convertible debt by 18% to $6.7 billion”. Strategy Inc. also has a $3.75 billion USD Reserve covering more than 2.1 years of obligations.

Analysts are nearly unanimous. 2 rate the stock Strong Buy, 13 rate it Buy, 1 rates it Hold and none rate it Sell. Their earnings estimates are shakier. The fiscal 2026 EPS average fell from 31.0171 to -21.9385 over 90 days, though fiscal 2027 picked up three up revisions in the past month.

Michael Saylor said on the fourth-quarter call, “Our objective is to double your Bitcoin per share over seven years.” The NAV premium is the weakest leg. If it contracts, every share sale buys less bitcoin per share.

Coinbase and MARA Sank With Strategy Inc. While Riot Held Up Strategy Inc. had plenty of company. Most of the crypto group sold off together.

Coinbase Global (NASDAQ:COIN) fell 52.51% over the year. Trading at $178.45 versus a $208.73 target, it offers only 17.0% upside. Its ratings are more divided, with 12 Holds and 2 Sell ratings.

MARA Holdings (NASDAQ:MARA) dropped 48.84%. At $10.36 against an $18.69 target, it offers 80.4% upside. Analysts are split across 8 bullish, 4 Hold and 1 Sell ratings.

Riot Platforms (NASDAQ:RIOT) is the outlier, down just 13.65% over the year and up 46.33% year to date. Trading at $18.54 versus a $31.54 target, analysts see 70.1% upside.

Strategy Inc. Is Flat This Year as the S&P 500 Gains 13.98% At $153.37, Strategy Inc. trades well below the $236.80 consensus target from 16 analysts, leaving 54.4% implied upside. Shares are up 0.93% so far this year, and the S&P 500 has gained 13.98%. Over one year, the stock lost 53.3% while the index rose 16.16%.

Shares rose 7.4% over the past month as Bitcoin climbed 28.33% over 60 days, though the stock dropped 6.79% last session.

I Lean Bullish, With the Consensus Target as My Anchor The bull case for Strategy Inc. improves if Bitcoin’s rebound holds and the company keeps adding bitcoin per share without heavy dilution. Rising coin prices would lift reported earnings, the NAV premium could rebuild, and $236.80 looks reachable. The bear case takes over if Bitcoin rolls over. Preferred dividends, $6.7 billion of convertible debt and constant share issue would weigh on common shareholders with no earnings buffer.

I lean cautiously bullish. Bitcoin is down 4.89% this year while the stock is roughly flat, suggesting much of the de-rating is priced in. Benchmark’s $435 target needs a lasting premium and a strong Bitcoin rally. I treat the consensus target as realistic upside and the 183.6% call as best case. Riding a crypto-proxy like this is fine as long as you plan the exit, which is the whole point of our free bubble survivor’s handbook.

Contact [email protected] for any questions or corrections.

Riot Platforms, Inc. (RIOT - Free Report) closed at $18.54 in the latest trading session, marking a -2.06% move from the prior day. This move lagged the S&P 500's daily loss of 0.22%. On the other hand, the Dow registered a loss of 0.66%, and the technology-centric Nasdaq decreased by 0.22%.

The company's shares have seen a decrease of 14.96% over the last month, not keeping up with the Finance sector's loss of 4.09% and the S&P 500's gain of 1.4%.

Market participants will be closely following the financial results of Riot Platforms, Inc. in its upcoming release. The company is predicted to post an EPS of -$0.33, indicating a 226.92% decline compared to the equivalent quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $160.65 million, reflecting a 10.86% fall from the equivalent quarter last year.

For the full year, the Zacks Consensus Estimates are projecting earnings of -$2.71 per share and revenue of $670.18 million, which would represent changes of -38.97% and +3.51%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for Riot Platforms, Inc. These recent revisions tend to reflect the evolving nature of short-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.

Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.1% higher. Riot Platforms, Inc. is currently sporting a Zacks Rank of #3 (Hold).

The Financial - Miscellaneous Services industry is part of the Finance sector. Currently, this industry holds a Zacks Industry Rank of 170, positioning it in the bottom 31% of all 250+ industries.

The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.

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Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Key Takeaways IREN is scaling AI cloud services, while Riot is building around long-duration data center leases.IREN says 2026 AI capacity is largely sold out, while Riot's largest lease fully deploys in 2028.Riot has $9.8B in contracted data center revenues, while IREN targets 0.8 GW of IT load in 2027. IREN Limited (IREN - Free Report) and Riot Platforms (RIOT - Free Report) share the same starting point. Both built large Bitcoin mining operations around access to power, land and data center infrastructure, then found a second growth path in the surge in AI computing demand. This common asset base gives each company a credible route from crypto mining into AI and high-performance computing without starting from scratch.

The difference is how far each has moved. IREN is rapidly becoming an AI cloud operator, combining data centers, GPUs and software while planning to effectively wind down Bitcoin mining by the end of 2026. Riot is taking a more gradual route, keeping a sizable mining business while developing and leasing powered data center capacity to customers such as AMD and a frontier AI lab.

For investors, the comparison is less about two miners and more about two different ways to monetize scarce power — cloud services versus long-term infrastructure leases.

The Case for IRENIREN's growth case rests on how quickly its AI business is moving from promise to contracted demand. The company says 2026 capacity is largely sold out, with more than $4 billion of contracted annualized run-rate revenues, while $1 billion was already operating in late August. Horizon 1, the first 50 MW deployment for Microsoft, has been delivered, and three more 50 MW phases are targeted for the December quarter.

The customer mix is also widening. Beyond Microsoft and NVIDIA, IREN has signed or expanded relationships with AI developers and enterprises, including Cohere, Prometheus, Perplexity and Figure AI. This matters because a broader customer base can reduce dependence on a few large contracts while giving IREN more opportunities to sell managed services through Mirantis.

Capacity provides another advantage. IREN is targeting roughly 0.3 GW of IT load in 2026 and 0.8 GW in 2027, backed by a data center pipeline exceeding 5 GW. Riot also has large power assets, but IREN is moving faster toward a full-stack model that monetizes the data center, GPU compute and software layers together.

However, the trade-off is execution risk. Fiscal 2027 capital spending is forecast at $25 billion to $30 billion, making timely financing, construction and customer acceptance critical. Still, IREN has assembled $14 billion of existing cash, committed GPU financing and prepayments, with additional financing targeted. The opportunity is substantial, so is the operational burden of delivering it on schedule. This combination makes successful delivery the test of whether contracted demand can become durable earnings growth.

The Case for RIOTRiot's AI strategy is taking shape around long-duration data center leases rather than a full-stack cloud offering. At Rockdale, the company has contracted 241 MW of critical IT capacity across AMD and a leading frontier AI lab, representing about $9.8 billion of contracted data center revenues. This creates a clearer long-term revenue base than Riot had as a pure Bitcoin miner.

Execution has started well. Riot delivered the first 25 MW to AMD on time and on budget, while another 25 MW is under construction for full delivery by May 2027. The larger 191 MW frontier AI lab lease is expected to begin rent commencement in December 2027 and reach full deployment in June 2028, with an initial 20-year term.

Riot also has significant optionality at Corsicana, where 1 GW of approved power supports a potential 756 MW of critical IT capacity. However, the full site is currently covered by a nonbinding letter of intent, not an executed lease. Compared with IREN's contracted 2026 AI capacity, Riot's next major AI revenue step-up is more back-end weighted.

Bitcoin mining remains an important part of Riot's economics and financing. Second-quarter 2026 mining revenues were $113.7 million, and the company has been selling Bitcoin to fund the equity portion of data center development. This provides liquidity, but it also leaves results exposed to Bitcoin prices and network difficulty. Riot's lease model offers durable potential cash flows, yet the transition to AI is progressing at a measured pace. This leaves more execution milestones ahead.

How Do Estimates Compare for IREN & RIOT?The Zacks Consensus Estimate for IREN’s fiscal 2027 and 2028 sales implies year-over-year growth of 332.62% and 162.39%, respectively. The consensus mark for IREN’s 2027 earnings has been revised northward in the past 30 days, while estimates for 2028 have been tweaked southward.

For IREN:

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for RIOT’s 2026 and 2027 sales calls for a year-over-year increase of 3.82% and 23.30%, respectively. Over the past 60 days, earnings estimates for both 2026 and 2027 have been revised downward, signaling a bearish outlook from analysts.

For RIOT:

Image Source: Zacks Investment Research

Price Performance and Valuation of IREN & RIOTOver the past three months, IREN shares have declined 3.9%, while RIOT shares have plunged 17.1%. In comparison, the S&P 500 composite has advanced 3.5% in the same time frame. 

Image Source: Zacks Investment Research

On a forward 12-month price-to-sales basis, IREN currently looks less demanding than RIOT. IREN trades at 4.06X forward 12-month price-to-sales versus 10.95X for RIOT.

On that measure, IREN carries the lower forward sales multiple despite pursuing the faster AI revenue ramp-up. IREN's forward revenue base assumes rapid commissioning of contracted AI capacity, while Riot's largest data center lease does not fully deploy until 2028. Hence, the gap suggests investors are paying substantially more for each dollar of Riot's expected near-term sales than IREN's today.

Valuation: IREN & RIOT

Image Source: Zacks Investment Research

Conclusion: IREN Offers the Stronger Growth SetupIREN and Riot both offer ways to invest in the migration of Bitcoin infrastructure toward AI data centers, but their growth profiles are increasingly different. Riot has secured credible long-term tenants and retains a mining engine, yet much of its major AI capacity will arrive later. IREN is moving more aggressively, with AI cloud revenues already scaling, 2026 capacity largely contracted and a broader full-stack platform under development.

IREN carries a Zacks Rank #3 (Hold), with a Growth Score of B, Momentum Score of B, Value Score of F and VGM Score of C, suggesting stronger growth and momentum but weaker value characteristics. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

RIOT also carries a Zacks Rank #3 and has a Value Score of F, Growth Score of D, Momentum Score of D and VGM Score of F, indicating weaker value characteristics and less favorable growth and share-price/estimate trends. The VGM Score of F reinforces that weakness across the three styles.

For investors focused on growth, IREN is the better stock to consider, while Riot offers a slower, lease-led transition with continued Bitcoin exposure.

In the latest close session, Riot Platforms, Inc. (RIOT - Free Report) was up +1.81% at $24.18. The stock outpaced the S&P 500's daily gain of 1.49%. On the other hand, the Dow registered a gain of 0.71%, and the technology-centric Nasdaq increased by 2.26%.

Coming into today, shares of the company had gained 19.77% in the past month. In that same time, the Finance sector lost 2.25%, while the S&P 500 gained 0.1%.

Market participants will be closely following the financial results of Riot Platforms, Inc. in its upcoming release. The company is predicted to post an EPS of -$0.33, indicating a 226.92% decline compared to the equivalent quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $162.75 million, reflecting a 9.7% fall from the equivalent quarter last year.

For the full year, the Zacks Consensus Estimates project earnings of -$2.71 per share and a revenue of $670.27 million, demonstrating changes of -38.97% and +3.53%, respectively, from the preceding year.

It's also important for investors to be aware of any recent modifications to analyst estimates for Riot Platforms, Inc. These revisions help to show the ever-changing nature of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 3.84% lower. Riot Platforms, Inc. presently features a Zacks Rank of #3 (Hold).

The Financial - Miscellaneous Services industry is part of the Finance sector. With its current Zacks Industry Rank of 156, this industry ranks in the bottom 37% of all industries, numbering over 250.

The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.

For years, bitcoin miners traded like a leveraged bet on the token they produce. That relationship broke down over the past year, according to a recent CoinShares report.

Key Takeaways:

Bitcoin fell 31% over the past year, while four of the five largest miners gained.
In August, efficient mining fleets turned a profit while older rigs lost money on the same power.
WGMI broadened past miners in August to add AI infrastructure names like Nebius and CoreWeave.

Bitcoin fell roughly 31% over the 12 months through September 1. Hut 8 Corp. (HUT) gained 188.1% over the same stretch. Riot Platforms, Inc. (RIOT) rose 29.9% and CleanSpark, Inc. (CLSK) climbed 22.7%. Four of the five largest miners beat bitcoin instead of tracking it, CoinShares found.

The reversal traces to a shift in how miners make money, according to CoinShares. Rather than only converting electricity into bitcoin, operators are increasingly leasing those same power contracts to artificial intelligence data centers. That shift has turned mining stocks into a bet on digital infrastructure, not a leveraged play on the token’s price.

Efficiency explains the divergence at the fleet level, according to CoinShares. At the end of August, efficient mining rigs turned a megawatt-hour into about $136 of bitcoin. Those rigs ran below 14 joules per terahash. Machines using 25 to 38 joules per terahash converted the same power into roughly $51.

The average U.S. industrial electricity price was 8.85 cents per kilowatt-hour in July. At that rate, efficient fleets turned a profit while older machines lost money.

Operators with aging fleets found a more profitable use for that power: artificial intelligence. Core Scientific, Inc. (CORZ) generated 83% of its second-quarter revenue from AI colocation rather than mining, CoinShares reported.

Riot signed a 191-megawatt, 20-year lease in August, worth $9.1 billion in contracted revenue. Hut 8 has lined up 949 megawatts of AI capacity valued at $26.6 billion, none of it energized yet.

The ETF Built for Bitcoin Miners Changes Course
Underwriting a single miner increasingly means underwriting power markets and data center construction schedules, not just mining economics, CoinShares noted. A fund spreads that risk across operators.

CoinShares pointed to its own ETF, the CoinShares Bitcoin Mining and Digital Power ETF (WGMI), as an example of how fast the category is shifting.

WGMI changed its investment strategy August 11 and was renamed a week later, according to CoinShares. Its mandate now reaches beyond miners into hyperscale data centers, AI semiconductors and power generation.

See more: WGMI Bitcoin Mining ETF Expands Into AI Power Race

Holdings include Nebius Group N.V. (NBIS) and CoreWeave, Inc. (CRWV). Miners such as Cipher Digital Inc. (CIFR), Hut 8 and Riot remain in the portfolio too.

That AI exposure doesn’t always help, though. In the month through August 26, bitcoin rose 22.5%, according to CoinShares. Miners that had leaned hardest into AI finished flat or lower. Three of the most financially stressed pure-bitcoin operators, the ones with the heaviest losses, led the market instead.

VettaFi and CoinShares will host a due diligence session on this shift on September 22 at 12:30 p.m. ET. The session is titled “The Convergence of Bitcoin Mining and AI: From Crypto Niche to Digital Power Infrastructure.” It features CoinShares’ Calvin Tintle and VettaFi’s Roxanna Islam. They will cover what hyperscalers need from miners and where WGMI fits in a portfolio. Register here.

For more news, information, and strategy, visit the CoinShares Crypto ETF Hub.

In the latest trading session, Riot Platforms, Inc. (RIOT - Free Report) closed at $20.95, marking a -2.42% move from the previous day. This change lagged the S&P 500's daily loss of 0.48%. On the other hand, the Dow registered a loss of 0.29%, and the technology-centric Nasdaq decreased by 0.56%.

Shares of the company have appreciated by 12.91% over the course of the past month, outperforming the Finance sector's loss of 0.73%, and the S&P 500's loss of 0.82%.

Analysts and investors alike will be keeping a close eye on the performance of Riot Platforms, Inc. in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be -$0.33, reflecting a 226.92% decrease from the same quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $162.75 million, indicating a 9.7% decrease compared to the same quarter of the previous year.

For the full year, the Zacks Consensus Estimates project earnings of -$2.71 per share and a revenue of $670.27 million, demonstrating changes of -38.97% and +3.53%, respectively, from the preceding year.

Investors should also note any recent changes to analyst estimates for Riot Platforms, Inc. These revisions help to show the ever-changing nature of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 7.29% lower. Right now, Riot Platforms, Inc. possesses a Zacks Rank of #4 (Sell).

The Financial - Miscellaneous Services industry is part of the Finance sector. This group has a Zacks Industry Rank of 159, putting it in the bottom 36% of all 250+ industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow RIOT in the coming trading sessions, be sure to utilize Zacks.com.

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Strategy (NASDAQ:MSTR | MSTR Price Prediction), the bitcoin treasury juggernaut formerly known as MicroStrategy, currently trades near $119.25. Benchmark analyst Mark Palmer’s active price target sits at $435, implying roughly 265% upside from here.

The company holds 846,000 BTC as of Q2 2026, layered atop a legacy enterprise analytics software business. Strategy has become a leveraged bitcoin proxy, with shares moving harder than the coin in both directions.

Palmer recently cut his target from $570 while keeping his Buy rating intact, yet even the trimmed number implies a triple from current levels. Either the market is badly mispricing this name, or Palmer is badly early.

Bitcoin’s Slide Cratered Strategy’s Balance Sheet Q2 2026 delivered an $8.32 billion unrealized loss on digital assets, driving a net loss of $8.22 billion and reported EPS of -$24.45 against a $3.0743 consensus. Revenue of $122.4 million came in roughly in line, up 6.9% year over year.

Under fair-value accounting, every bitcoin drawdown flows through the income statement in real time. Bitcoin has fallen 11.58% year to date, trading near $77,365, and Strategy carries its coins at $49.7 billion against a $63.9 billion cost basis. Shares are down 21.52% year to date and 64.68% over one year, well beyond bitcoin’s own decline.

Retail sentiment has turned hostile. One widely upvoted wallstreetbets post argued MSTR heads to $40 in eight to twelve weeks. That is the backdrop against which Palmer is still writing up the stock.

Palmer’s Leverage Engine Thesis Survives the Cut Palmer’s revised $435 target leaves Benchmark the loudest bull. His model treats Strategy as an actively managed Bitcoin leverage engine that can structurally trade above the net asset value of its coins because of capital markets execution that spot ETFs cannot replicate.

Strategy grew bitcoin holdings 11% in Q2 while cutting convertible debt 18% to $6.7 billion. Management raised the STRC preferred dividend to 12.00% annualized and built the USD Reserve to $3.75 billion, covering more than two years of preferred dividend and interest obligations. CEO Phong Le said the company “strengthened our balance sheet while navigating a meaningful bitcoin price decline.”

Of 15 covering analysts, 2 rate the stock Strong Buy, 12 Buy, and 1 Hold, with no Sell ratings. The consensus target of $229.07 implies roughly 92% upside. Palmer’s number requires bitcoin to normalize and the reflexive premium mechanism to reassert itself. Management’s stated goal is “to double your Bitcoin per share, right, over seven years,” making this thesis explicitly multi-year.

MSTR Stands Out Inside a Battered Crypto Group Coinbase (NASDAQ:COIN) trades at $186.49 versus a consensus target of $194.97, implying 4.5% upside, with the stock down 17.53% year to date. Ratings tilt Buy, with 22 of 34 analysts positive, but revisions turned cautious after Q2 revenue slid 18.5% on collapsing trading volumes.

Marathon Digital (NASDAQ:MARA) sits at $11.28 against a $17.99 consensus target for roughly 59% upside. Shares are up 25.39% year to date on the AI data center pivot and a Texas 2 GW site deal. Eight of 13 covering analysts rate MARA Buy or better.

Riot Platforms (NASDAQ:RIOT) trades at $19.82 with a $32.40 target, worth around 63% upside. Riot’s 20-year, 191 MW AI data center lease has propelled shares 56.51% higher year to date, and 20 of 21 covering analysts are positive.

Across the group, MSTR carries the largest implied analyst upside by a wide margin. That reflects how deeply the market has discounted Strategy’s leverage stack.

How Far MSTR Has Fallen Behind the Market Strategy trades near $119.25, versus a consensus target of $229.07 and Palmer’s $435. The 52-week range runs from $81.81 to $365.21, with the stock well below its 200-day moving average of $143.95.

Fifteen analysts cover the name: 2 Strong Buy, 12 Buy, 1 Hold, and no Sell ratings. Shares are down 21.52% year to date and off 64.68% over the trailing year. Over the same period, the S&P 500 is up 12.29% year to date and 20.48% over one year, a rare mismatch for a high-beta name (beta near 3.55).

Where I Come Down on Strategy Here The bull case works if bitcoin’s drawdown is cyclical rather than a regime change, and if Strategy retains capital markets access to issue digital credit on favorable terms. Palmer’s leverage engine reprices as bitcoin recovers, the STRC preferred trades back near par, and both the $229 consensus and $435 Benchmark case become live. Bitcoin per share, up 5% in Q2 alone, is the metric to watch.

The bear case holds if the market is right that a $6.7 billion convertible stack, $400.7 million in Q2 preferred dividends, and mark-to-market accounting on nearly $14 billion of underwater bitcoin are fragile. If bitcoin grinds lower and equity markets close, the amplification math runs in reverse.

My lean is cautiously constructive. Palmer’s $435 requires nearly everything to go right. The $229 consensus does not. For investors who already own bitcoin exposure, Strategy functions as the leverage trade layered on top. For those without direct bitcoin exposure, the coin itself is the more straightforward vehicle.

Contact [email protected] for any questions or corrections.

Listen to the audio version of this article (generated by AI).

The public’s data-center revolt spreads… even Texas taps the brakes… will it kill the AI trade?… why the move is “sort,” not “sell” The public really hates data centers – but that could make you a lot of money.

Last month, I introduced an analytical framework I called “The Messy Middle” – the idea that AI won’t force us to choose between good and bad outcomes, but between two legitimate “goods” vying for priority. We won’t be able to have both in equal measure at the same time.

One example we profiled came from New York, where Gov. Kathy Hochul became the first governor to sign a law pausing the construction of new hyperscale AI data centers.

She gave up the “goods” of longer-term productivity gains, jobs, and the bigger tax base that those data centers would have delivered…in exchange for the “goods” of holding down electricity prices, protecting natural resources from potential pollution, and shielding communities from disruption.

Not right or wrong – simply a prioritization.

Now, this anti-data-center backlash isn’t limited to New York. It’s gathering momentum across the country at the very moment AI usage at home and at the office is accelerating, driving enormous demand for the very same data centers those communities are fighting.

That’s the Messy Middle setting up on a national scale. And while it could create real social tensions, it could also be incredibly lucrative for investors who know where to look.

Here’s our global macro investment expert, Eric Fry, to explain:

When new capacity becomes harder to build, existing capacity becomes more valuable.

And companies that already have the land, power and facilities needed for AI data centers could be sitting on valuable real estate – literally.

One company cashing in on the Messy Middle of AI’s infrastructure needs Last week, Anthropic reportedly signed a 20-year, $9.1 billion deal with Riot Platforms, Inc. (RIOT) for 191 megawatts of data-center capacity at Riot’s Rockdale, Texas, campus.

Riot expects the deal to generate about $9.1 billion through 2048, with an option that could push the total value to $16.1 billion. The capacity is expected to be delivered in phases, beginning in 2026 and continuing through 2028.

Back to Eric:

The key here is that Riot doesn’t have to start from scratch.

The company, best known as a bitcoin miner, already has the land, power and infrastructure needed to support a data center.

So, instead of using all of that capacity for bitcoin mining, it can lease it to AI companies, like Anthropic.

As politicians and voters battle over the Messy Middle, companies like Riot that bypass these political and administrative bottlenecks stand to benefit.

Beyond RIOT, check out Core Scientific (CORZ). It holds massive, pre-existing gigawatt-scale power infrastructure and has been a pioneer in signing long-term, high-performance computing contracts with hyperscalers.

There’s also CleanSpark (CLSK), which commands a broad pipeline of powered industrial sites with approved grid connections. These sites can be retrofitted for AI data workloads or alternative compute.

The thread connecting all three stocks is the same: each one already owns something that’s suddenly become scarce – power, land, and grid access that would take years and a bruising permitting fight to assemble from scratch today.

But these infrastructure landlords are only the first rung on the AI opportunity ladder. There are plenty more rungs.

Think about everything it takes to turn a powered site into a working AI data center You need the electricity itself, which points to power generators… You need to move that electricity, which points to transformers, substations, and transmission gear… You need to keep the chips from cooking themselves, which points to industrial-scale cooling… You need firms to design and build the facilities… And, of course, there’s everything that goes inside – the semiconductors and memory that do the actual computing.

Every one of those rungs is its own bottleneck. And every bottleneck is its own opportunity.

That’s a lot of ground for any single investor to cover, which is exactly why Eric, alongside Louis Navellier of Growth Investor and Luke Lango of Innovation Investor, have spent recent weeks covering it for you.

The three of them have rebuilt their collective AI Revolution Portfolio from the ground up – designing it to capture multiple rungs of that ladder rather than bet everything on a single stock or sector.

Our three experts first assembled this portfolio of elite AI stocks in 2023, then rebalanced it at the end of 2024 as the AI race shifted. And they see this moment – where a single infrastructure bottleneck is spilling opportunity across a dozen industries – as the next pivot point.

They’re pulling back the curtain tomorrow morning at 10:00 a.m. Eastern, when they’ll unveil their rebuilt portfolio and walk through exactly how they’re positioning for AI’s next phase.

Back to Eric:

The AI Revolution has created an enormous number of potential investment opportunities. But the more this technology spreads, the harder it becomes to know which companies deserve your attention – and, just as importantly, which don’t.

That’s what tomorrow is about – separating the best opportunities from the rest.

To join Eric, Louis, and Luke, just click here to register. We’ll see you tomorrow at 10:00 a.m. Eastern.

“But hold on, Jeff, if we see a wave of data center moratoriums across the nation, won’t that kill the AI trade?” It’s tempting to see the backlash as pure upside: choke off new construction, and whoever already owns power gets richer. That’s the bull case, and I think it’s largely right. But a sharp reader should be asking the harder question – if the backlash keeps spreading, doesn’t it threaten the entire AI infrastructure trade?

Take an AI picks-and-shovels supplier like Vertiv Holdings Co. (VRT). Its order book has swelled past $12 billion on the power and cooling gear these facilities need. But those orders only convert to revenue if the data centers actually get built and powered. Slam the brakes, and a backlog is just a promise.

So, a widespread national moratorium on data centers isn’t something to brush off idly. Let’s walk through it.

Beyond memory, one of the most significant constraints on AI today is power. There simply isn’t enough of it, fast enough, to feed every planned facility.

When politicians layer permitting delays, grid audits, and ratepayer fights on top of an already power-starved buildout, they genuinely slow the pace at which that backlog turns to cash.

So yes, slower-than-expected revenue would ding AI infrastructure companies that have told Wall Street those revenues are coming. But a ding isn’t the same as a broad AI crash.

Here’s the part the doomsayers skip Earlier this month, headlines trumpeted that even data-center leader Texas was slamming the brakes on its data-center rollout. It was positioned as a harbinger of doom for AI.

Yes and no.

Texas Gov. Greg Abbott ordered regulators to audit data centers waiting to plug into the state grid and deny those that didn’t measure up.

It was a screen, not a stop – and it came with a giant loophole: facilities that build their own on-site power can skip the grid queue entirely. Even his critics shrugged, with one Texas official calling it “all hat and no cattle” – Texas jargon for all talk and no action.

Sound familiar? On-site power is precisely what Riot, Core Scientific, and CleanSpark already have.

Meanwhile, all year, as the moratoriums piled up, the spending went up. The four biggest hyperscalers now plan roughly $725 billion in capital expenditures this year – the money they pour into building all this – up about 77% from 2025.

But how has this been happening even as the moratoriums have been growing? Because as we noted in our Messy Middle Digest last month, resistance in one state doesn’t kill AI demand – it relocates it.

A project blocked in New York or stalled in Texas moves to a friendlier corridor, another state, or offshore. The chips still get bought.

So, the backlash doesn’t break the trade, but it does redistribute the winners – and raises the cost of being on the wrong side.

Returning to our question then… How worried should you be about your AI infrastructure stocks considering this growing data center backlash?

I’d call it a yellow flag, not a red one – but with one genuine red tail.

The yellow flag is timing. Delays and cost overruns can bruise these richly priced stocks even when demand remains intact.

Returning to Vertiv, we just watched it happen here in Q2. The company reported record demand and raised its full-year guidance, yet the stock still dropped about 12% as revenue slipped due to project timing and supply-chain snags. Nothing was wrong with the demand – only the pace of delivery – and the stock got slammed anyway.

The red tail is the one we flagged back in July: isolated state pushback just routes capital elsewhere, but a coordinated wall – a federal pause, or so many states acting at once that there’s nowhere friendly left to go – could truly break the trade. Today, that’s a risk to watch, but not the base case.

One thing to watch above all: the day that hyperscaler spending guidance stops rising. That’s the signal to take seriously. Until then, rising guidance is your green light to stay in the AI infrastructure trade.

Which is why the move today isn’t “sell,” it’s “sort” This is the Messy Middle turned on your own portfolio. For every AI holding you own, ask a single critical question…

Which side of the productivity-versus-disruption tradeoff is it on?

The scarcity beneficiaries – the power, grid, cooling, and existing-capacity names – get more valuable as building gets harder. The chipmakers are largely insulated, because demand just relocates. The vulnerable ones are the opposite: names pinned to a single contested region, or priced as if the buildout will be cheap, fast, and unopposed.

All this brings us back to tomorrow’s AI Revolution Portfolio refresh, with updated positions spread deliberately across all the rungs of the AI ladder rather than concentrated on any one of them. Here’s that link again to reserve your spot.

We’ll keep tracking the backlash – and both sides of the trade it’s creating – in the months ahead.

Have a good evening,

Jeff Remsburg

 (Disclosure: I own VRT.)

The AI race may be driving a new pricing benchmark. JPMorgan estimates Anthropic agreed to pay roughly $2.4 per watt per year for capacity at Riot Platforms, Inc‘s (NASDAQ:RIOT) Texas data center — about 33% above the firm’s estimated industry average of $1.8 per watt per year — suggesting that ready-to-deploy AI infrastructure is commanding a growing premium as demand outpaces supply.

Anthropic’s Lease Suggests AI Infrastructure Pricing Power Is StrengtheningThe pricing insight comes from JPMorgan’s analysis of Riot’s newly signed 191-megawatt data center lease with Anthropic. According to the bank, the contract’s implied pricing sits well above prevailing market levels, reinforcing the view that companies building frontier AI models are willing to pay up for capacity which can be delivered quickly.

• Riot Platforms shares are climbing with conviction. What’s fueling RIOT momentum?

The economics are significant. The base 20-year agreement is expected to generate approximately $9.1 billion in total contract value, with two optional five-year extensions increasing the potential value to $16.1 billion. Riot plans to deliver the first 96 MW of capacity by December 2027 and the remaining 95 MW by June 2028.

JPMorgan Sees Scarce Power Driving Premium PricingJPMorgan believes the premium reflects more than Anthropic’s willingness to spend. The bank pointed to tightening supply-demand dynamics for AI infrastructure, particularly sites with existing grid access and near-term delivery timelines. Riot’s Corsicana campus, which already has approved interconnection capacity and is partially energized, is also under a non-binding letter of intent covering its full 756 MW, underscoring continued demand for large-scale AI deployments.

The analysts also argued that recent actions by Texas regulators could further increase the value of power-ready campuses by making existing capacity more difficult to replicate. That, in turn, could support elevated pricing for operators with shovel-ready infrastructure.

What Investors Should Watch NextThe key question is whether Anthropic’s pricing proves to be an outlier or the beginning of a broader repricing across the AI infrastructure market.

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If Riot secures a binding lease for its 756 MW Corsicana campus at comparable economics, it would strengthen the argument that power — not GPUs — is becoming the scarcest asset in the AI buildout.

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For investors, future lease pricing may matter just as much as megawatts contracted.

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As the crypto winter marches on, Bitcoin has now plummeted nearly 28% this year. This has been particularly difficult for companies like Bitcoin miners that are valued based on their Bitcoin holdings.

Luckily, however, Bitcoin mining is made possible through powerful data centers that use high-speed computers to solve cryptographic puzzles to earn and mine new Bitcoins. Data centers are also fueling the artificial intelligence (AI) revolution.

As crypto continues to struggle, some Bitcoin mining companies have retrofitted their facilities to power AI. Riot Platforms (RIOT -1.01%) just entered into a $9 billion agreement to provide AI compute to Anthropic. Here's why AI is key to valuing crypto-mining companies.

Image source: Getty Images.

Making the conversion comes with rewards
Crypto mining facilities have several key advantages when it comes to becoming an AI data center. For one, they already have a significant head start: They have secured land for a data center, are connected to the power grid, and are up and running. New data centers have received significant pushback from the public due to environmental issues and the threat AI could pose to humanity.

Still, making the transition is not necessarily easy. The hardware used by Bitcoin miners does not work for AI, so these miners need to secure graphics processing units (GPUs) from companies like Nvidia, as well as different fans to keep the chips cool.

Given that the software and infrastructure needs differ, this may also require new personnel to operate effectively. Power consumption and its management also differ for AI, and Bitcoin mining companies may need new permits to operate an AI data center.

But for those that successfully make the transition, the rewards can be immense.

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Riot's $9.1 billion deal with Anthropic is for an initial 20-year term at its Rockdale, Texas, campus. There are also two five-year extensions at Anthropic's option, which could translate into an additional $7 billion of revenue.

This follows an earlier deal this year in which Riot agreed to lease 25 megawatts (MW) of compute capacity to Advanced Micro Devices, with the potential to expand to 200 MW of critical IT load capacity. Riot's deal with Anthropic is for 191 MW of capacity.

The company generated only about $23 million in revenue from its data center division in the second quarter, but you can see how that's going to ramp up quickly: $9 billion over 20 years, split evenly, is about $450 million per year. Riot had roughly $174 million of total revenue in the second quarter.

Valuing these stocks based on potential compute
A major way many investors are valuing neocloud stocks serving AI companies like Anthropic and OpenAI is by looking at total capacity and determining how much they can charge for it, which can help them model total revenue.

Much more goes into that because companies also have to bring all their capacity online to monetize it, which presents its own challenges. And the data center business is capital-intensive, so investors need to assess the potential returns on investment.

The amount data centers can charge for compute may change over time, based on supply and demand. While I don't know the full details of the Riot-Anthropic deal, I suspect Anthropic is not contractually obligated to pay for all 20 years and has the flexibility to exit the deal.

For instance, Anthropic signed a huge compute deal with Space Exploration Technologies, under which it could pull out with 90 days' notice.

Still, looking at Riot, the company could have upside, given its 1.7 gigawatts of fully approved compute capacity. The company trades at a $7.1 billion market cap.

Another Neocloud, Nebius, has a roughly $75.5 billion market cap and plans to have 800 MW to 1 GW of power online by the end of the year. However, Nebius also plans to have 5 GW of contracted power by year's end and then plans to bring 1 GW of power online per year starting in 2027.

So there's a reason for Riot's discount, but you can see how contracted power and actual capacity brought online are everything for neocloud stocks, and thus the Bitcoin miners are trying to become neoclouds.

Riot Platforms Inc (NASDAQ:RIOT) shares rose about 4% on Tuesday after the bitcoin mining company announced a 20-year data center lease with a leading frontier AI lab in a deal valued at approximately $9.1 billion over its initial term. The tenant was not identified by Riot, but the deal has been widely reported to be with Anthropic.

The agreement covers 191 megawatts of critical IT capacity at Riot’s Rockdale campus and is expected to generate approximately $9.1 billion in total contract revenue through June 2048. The lease includes two five-year extension options that could bring the total potential contract value to approximately $16.1 billion if both are fully exercised.

Riot said the lease is expected to generate cumulative net operating income of between $7.3 billion and $8.2 billion over the initial 20-year term, representing an estimated average annual NOI contribution of $365 million to $411 million.

The company expects to deliver the capacity in phases, with the initial 96 IT megawatts scheduled for December 2027 and the full 191 IT megawatts expected to be deployed by June 2028. Riot said the project will leverage its existing, fully approved interconnection at the Rockdale campus.

The agreement marks Riot’s second tenant at the Rockdale campus, following its lease with Advanced Micro Devices. Together, the two agreements cover 241 megawatts of capacity and represent approximately $9.8 billion in long-term contracted revenue, according to Riot.

“Today’s announcement of a landmark 20-year, 191-megawatt data center lease with a leading frontier AI lab marks a defining moment in our evolution into a leading developer of large-scale data centers,” Riot CEO Jason Les said in a statement.  

“It builds directly on a strong second quarter, in which we completed delivery of the initial 25 megawatts to AMD on time and on budget. In just over six months, Riot has now executed leases totaling 241 megawatts of capacity, representing approximately $9.8 billion of long-term, contracted revenue with two of the most important companies in the AI ecosystem.”

The reported identity of the tenant has also added to speculation around a potential Anthropic initial public offering.

Reports have suggested the AI company could target a valuation of $965 billion to more than $1 trillion in a potential IPO as early as fall 2026.

Anthropic reportedly reached a $965 billion post-money valuation following a $65 billion Series H funding round. The company has also reportedly submitted a confidential draft Form S-1 registration statement to the SEC, while reports have pointed to a potential listing as early as October.

Bitcoin miner Riot Platform has struck a $9 billion, 20-year compute deal with Anthropic. CNBC's Tanaya Macheel joins 'The Exchange' to discuss.

Key Takeaways Riot Platforms signed a 191 MW, 20-year Rockdale AI lease with about $9.1B in contract revenues.Riot Platforms is funding AI and AMD builds with project debt as CapEx ramps into 2027.Riot Platforms says Corsicana's full-site LOI could support 756 MW and top $1B in annual rent Riot Platforms, Inc. (RIOT - Free Report) used its Q2 earnings call to frame 2026 around data center execution, led by a new 191-megawatt Rockdale lease with a leading frontier AI lab and a full-site Corsicana letter of intent.

Financially, RIOT posted a loss of 68 cents per share compared with the Zacks Consensus Estimate of a loss of 39 cents, a -74.40% surprise. Revenues of $174.20 million beat the $148.70 million consensus by 17.20%.

RIOT Locks in a 191 MW AI LeaseChief executive officer Jason Les said the Rockdale lease carries a 20-year initial term and about $9.1 billion of contract revenues. Two five-year extensions would raise potential contract revenues to $16.1 billion.

According to CEO Jason Les, the first 96 MW is targeted for December 2027, with the remaining 95 MW due in June 2028. Management expects an 80% to 90% NOI margin.

CEO Jason Les said illustrative capital spending is $11 million to $12 million per IT MW, or $2.1 billion to $2.3 billion for the project.

Riot Keeps AMD Expansion on ScheduleCEO Jason Les said Riot delivered AMD’s initial 25 MW in May on schedule and on budget, bringing recurring operating lease revenues onto the platform.

According to CEO Jason Les, construction is underway on AMD’s second 25 MW. The first 10 MW is expected in November 2026, with the remaining 15 MW scheduled for May 2027.

CEO Jason Les said ESS Metron and E4A remain embedded in project execution, providing internal engineering, switchgear and power-distribution capabilities.

RIOT Leans on Project Debt and Capital RecyclingChief financial officer Jason Chung said a $573 million Morgan Stanley interim facility is funding long-lead equipment and initial development for the frontier AI lab project while an investment-grade backstop is finalized.

CFO Jason Chung said Riot expects an approximately $180 million term loan against AMD’s first 25 MW and a delayed-draw facility for the next deployment. He expects the first loan to close before the end of Q3.

In Q&A, an ATB Cormark analyst asked about spending cadence. CFO Jason Chung said project CapEx should ramp in the second half of 2026 and peak across the AI lab and AMD builds around Q2 to Q3 2027.

Riot Advances a Full-Site Corsicana LOICEO Jason Les said Corsicana’s full site is under a nonbinding LOI with one tenant. The campus has one GW of approved utility power and supports a potential 756 MW of critical IT capacity.

A Needham analyst asked how discussions had progressed. CEO Jason Les said a full-site lease could exceed $1 billion in annual rent at full deployment, but the process requires extensive design, legal and commercial work.

CEO Jason Les also said Riot is continuing horizontal development and long-lead procurement without locking itself into tenant-specific choices before final terms are set.

RIOT Shows Early Data Center Margin ProgressCFO Jason Chung said Data Center revenues were $23.2 million, including $4.9 million of recurring operating lease revenues. Operating lease gross margin was 84%.

CFO Jason Chung said Engineering revenues reached $37.3 million and gross margin was 27.5%. The data center sector represented about 90% of the segment’s $177.1 million backlog.

CFO Jason Chung also said Riot ended Q2 with $1.2 billion of liquidity, including $666 million in Bitcoin and $549 million in cash, as Bitcoin sales continued to fund data center equity needs.

Riot Prioritizes Delivery, Leasing and FinancingCEO Jason Les said priorities for the rest of 2026 are to deliver AMD capacity, advance the frontier AI lab build, convert the Corsicana LOI into a lease and close lower-cost project financing.

CEO Jason Les also said Riot is evaluating additional power assets while maintaining a preference for sites that can meet hyperscaler and enterprise diligence requirements.

CEO Jason Les described the operating model as leasing to creditworthy tenants, financing projects efficiently, building with discipline and recycling capital into additional development.

RIOT’s Zacks Signals Remain Weak OverallRIOT currently carries a Zacks Rank #4 (Sell).

 You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Its Value, Growth and VGM Score are all F, while its Momentum Score is B. Under the Zacks framework, the favorable momentum reading does not override a weak Rank, which reflects unfavorable earnings-estimate revision trends.

The Zacks Rank can change as analysts revise estimates after the just-reported results. The current mix is a point-in-time signal, with post-earnings estimate revisions determining whether the Rank strengthens or weakens.

Shares of Riot Platforms (NASDAQ:RIOT | RIOT Price Prediction) are working through a choppy post-earnings tape. The stock is off 9.43% over the past week and 7.46% over the past month, yet retirement investors who have held through the noise are sitting on a 53.12% year-to-date gain and a 75.09% one-year advance. The stock still trades below its 52-week high of $30.32.

Wall Street is broadly constructive but restrained. The consensus Street target sits at $29.66, backed by 20 buy ratings and just one hold. Then comes a bolder call: 24/7 Wall St.’s 247Factor model pins a 2026 base-case target of $34.46, implying 71.21% upside from the current $20.13. That sits meaningfully above Street consensus.

But can RIOT realistically reach $34.46 by the end of 2026?

24/7 Wall St.’s $34.46 RIOT Prediction

The model blends forward earnings power with a 1.162 247Factor adjustment that reflects 37.3% YoY earnings growth, 95% bullish analyst consensus, and sector momentum. The anchor: Riot’s newly signed 20-year, 191-megawatt lease with a leading frontier AI lab worth roughly $9.10 billion, potentially $16.1 billion with extensions.

Key Drivers of RIOT Stock Performance

AI infrastructure conversion. Combined data center contracts now total 241 MW and approximately $9.8 billion in long-term contracted revenue, producing durable, decade-plus cash flow retirement accounts can compound around. AMD partnership economics. The initial 25 MW deployment is generating recurring lease revenue at an 84% gross margin, with expansion phases hitting November 2026 and May 2027. Capital-efficient buildout. Management projects only $30M to $280M in net equity for the frontier AI lab build, with $1.2 billion of liquidity and no new share issuance planned. Less dilution means more per-share value for long-term holders. What Will It Take for RIOT to Reach $34.46?

With a current market cap of roughly $7.76 billion at $20.13, sustaining a $34.46 share price implies market value expanding proportionally into the low-teens billions. Three conditions are required:

On-time delivery of the initial 96 MW by December 2027. Conversion of the Corsicana LOI (up to 1 GW) into an executed lease. Finalization of investment-grade project financing to fund the buildout without dilution. The primary risk remains construction execution across a multi-year, phased deployment stretching through June 2028. Even so, the contracted revenue base, AMD validation, and capital-light equity plan give the $34.46 target real credibility as a multi-year compounding thesis worth monitoring.

Contact [email protected] for any questions or corrections.

Terrestrial Energy Inc. (NASDAQ: IMSR) (“Terrestrial Energy” or “the Company”), a developer of small modular nuclear plants using its Generation IV Inte

Riot Platforms Inc (NASDAQ:RIOT) on Monday reported upbeat second-quarter sales results.

Riot reported second-quarter revenue of $174.20 million, beating analyst estimates of $152.06 million, according to Benzinga Pro. The company reported a second-quarter adjusted EBITDA loss of $69.73 million.

Subsequent to quarter’s end, Riot signed a 20-year data center lease with a “leading frontier AI lab” for 191 megawatts of capacity at the company’s Rockdale campus.

"Today’s announcement of a landmark 20-year, 191-megawatt data center lease with a leading frontier AI lab marks a defining moment in our evolution into a leading developer of large-scale data centers," said Jason Les, CEO of Riot. "It builds directly on a strong second quarter, in which we completed delivery of the initial 25 megawatts to AMD on time and on budget."

Riot Platforms shares jumped 18.9% to $23.07 in pre-market trading.

These analysts made changes to their price targets on Riot Platforms following earnings announcement.

Needham analyst John Todaro maintained the stock with a Buy and raised the price target from $28.5 to $30. Cantor Fitzgerald analyst Brett Knoblauch maintained the stock with an Overweight rating and raised the price target from $23 to $30. Considering buying RIOT stock? Here’s what analysts think:

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Shares of Riot Platforms (NASDAQ:RIOT | RIOT Price Prediction) are up 17% to $22.64 Tuesday morning after the company disclosed a landmark AI data center lease alongside its latest quarterly report. The move follows an after-hours surge of more than 25% on Monday, when Riot Platforms stock had closed the regular session down 5.46%.

The catalyst is a 20-year co-location agreement at Riot Platforms’ Rockdale, Texas campus, supplying 191 MW of critical IT capacity to an unnamed “leading frontier AI lab,” which Bloomberg identified as Anthropic. The lease is expected to generate about $9.1 billion of contract revenue through June 2048, with two five-year extension options that could raise total potential value to about $16.1 billion.

Combined with an existing lease with Advanced Micro Devices (NASDAQ:AMD), Riot Platforms now controls 241 MW of contracted capacity and roughly $9.8 billion of long-term contracted revenue, cementing its pivot from a pure Bitcoin (CRYPTO:BTC) miner into a large-scale data center developer. The scale of that backlog is what has traders repricing the stock as an AI infrastructure play rather than a pure crypto miner.

Anthropic Lease Anchors the Move Delivery under the new lease is staged: 96 IT MW by December 2027 and the full 191 IT MW by June 2028. Morgan Stanley is providing $573 million of interim financing while Riot Platforms finalizes a permanent credit backstop for the buildout.

CEO Jason Les, announcing the transaction, stated, “Today’s announcement of a landmark 20-year, 191-megawatt data center lease with a leading frontier AI lab marks a defining moment in our evolution into a leading developer of large-scale data centers.” He added that Riot Platforms has now executed 241 MW of leases with two of the most important companies in the AI ecosystem.

The quarterly print is more mixed. Riot Platforms’ revenue rose 14% year over year to $174.2 million, but the company swung to a net loss of $237.2 million (about $0.68 per diluted share) from a year-ago profit, with negative adjusted EBITDA. Traders are clearly focused on the multi-year revenue backlog rather than the current-quarter loss.

Moreover, the analyst reaction was swift. Bernstein raised its Riot Platforms stock price target to $35 from $30, with an Outperform rating, citing the Anthropic lease and a non-binding letter of intent covering Riot Platforms’ 1 GW Corsicana site. Citi lifted its target to $32 from $28, with a Buy rating, calling the Q2 report “transformational,” and Piper Sandler moved to $25 from $23, with an Overweight rating.

Peers Catch a Sympathy Bid Former Bitcoin miners repositioning as AI and HPC infrastructure operators are catching a modest read-through rather than their own news. IREN (NASDAQ:IREN) shares are up 2% to $39.58, Applied Digital (NASDAQ:APLD) shares are up 2% to $29.56, and TeraWulf (NASDAQ:WULF) shares are up 2% to $16.58.

The muted response across the group underscores that today’s move is a single-name event driven by Riot Platforms’ specific contract, not a broader sector rerating. The Global X Data Center & Digital Infrastructure ETF (NASDAQ:DTCR) is up just 1% to $28.25, reinforcing that read.

The DTCR ETF is a narrow thematic fund heavily concentrated in data-center REITs and digital infrastructure names, so single-miner news dilutes quickly. It’s also unleveraged, which is worth noting for investors weighing sector-concentration risk in their exposure to the theme.

What to Watch Market watchers can watch for follow-through on Riot Platforms’ Corsicana LOI conversion, updates on the permanent credit facility that would replace the Morgan Stanley bridge, and construction milestones ahead of the December 2027 initial Anthropic delivery. Riot Platforms stock could, in the coming weeks and months, reach its $29.66 analyst target price now that the shares are well above $20.

Options positioning tilts constructive, with Riot Platforms’ full-chain put/call ratio at 0.63 and Reddit sentiment on the r/wallstreetbets deal thread scoring 78, bullish. Momentum traders can keep this one active into the close, but the mixed Q2 print and heavy prior insider selling argue for measured position sizing rather than chasing.

Contact [email protected] for any questions or corrections.

Riot Platforms (RIOT) surged 20% premarket after reportedly securing a $9.1B, 20-year AI data center capacity deal with Anthropic, with potential extensions to $16.1B. PLUG shares jumped 11% as Q2 results beat expectations, gross margin neared breakeven, and 2026 revenue growth target was raised to 15%-16%.

Riot Platforms, Inc. (RIOT - Free Report) came out with a quarterly loss of $0.68 per share versus the Zacks Consensus Estimate of a loss of $0.39. This compares to earnings of $0.57 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents an earnings surprise of -74.36%. A quarter ago, it was expected that this company would post a loss of $0.33 per share when it actually produced a loss of $1.44, delivering a surprise of -336.36%.

Over the last four quarters, the company has surpassed consensus EPS estimates just once.

Riot Platforms, Inc., which belongs to the Zacks Financial - Miscellaneous Services industry, posted revenues of $174.24 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 17.16%. This compares to year-ago revenues of $152.99 million. The company has topped consensus revenue estimates three times over the last four quarters.

The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.

Riot Platforms, Inc. shares have added about 62% since the beginning of the year versus the S&P 500's gain of 13.3%.

What's Next for Riot Platforms, Inc.?While Riot Platforms, Inc. has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?

There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.

Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.

Ahead of this earnings release, the estimate revisions trend for Riot Platforms, Inc. was unfavorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #5 (Strong Sell) for the stock. So, the shares are expected to underperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is -$0.27 on $156.65 million in revenues for the coming quarter and -$2.33 on $629.87 million in revenues for the current fiscal year.

Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Financial - Miscellaneous Services is currently in the bottom 39% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

One other stock from the same industry, Vinci Compass Investments (VINP - Free Report) , is yet to report results for the quarter ended June 2026. The results are expected to be released on August 11.

This investments platform is expected to post quarterly earnings of $0.23 per share in its upcoming report, which represents a year-over-year change of +4.6%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.

Vinci Compass Investments' revenues are expected to be $56.05 million, up 31.7% from the year-ago quarter.