Buy this crypto stock for big returns, analyst says

ATB Capital Markets analyst Martin Toner maintained an “Outperform” rating and $29.00 target on Riot Platforms (Riot Platforms Stock Quote, Chart, News, Analysts, Financials NASDAQ:RIOT), saying first-quarter 2026 results showed further progress in its shift from bitcoin mining toward data-centre infrastructure.

Toner noted that Riot reported a net loss of $500.5-million, largely from non-cash mark-to-market adjustments on bitcoin holdings, but he said high-performance computing progress was strong, including delivery of its first 5MW of capacity to AMD.

The company reported its first $33.2-million in data-centre revenue, much of it tied to one-time tenant fit-out services. Toner said the recurring lease component generated a 91% gross margin, creating a high-margin base for future growth.

The analyst said AMD’s decision to exercise a 25MW option, doubling its contracted footprint to 50MW, is encouraging. AMD retains options for up to 200MW at Riot’s Rockdale facility.

Toner also noted improved capital efficiency at Corsicana, where Riot increased planned building capacity to 168MW from 112MW for the same capital spend, lifting total planned campus capacity to 756MW.

His $29.00 target is based on a sum-of-the-parts valuation, including 7.0x 2027 estimated EBITDA for Riot’s mining business and $19.79 per share for HPC potential.

Toner expects Riot to generate Adjusted EBITDA of $98.7-million on revenue of $649.3-million in fiscal 2026, improving to $184.9-million on revenue of $761.5-million in fiscal 2027.

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