Riot Platforms is likely to see significant upside from its newly secured powered land lease, according to Jefferies. The investment firm upgraded the digital infrastructure stock to buy from hold and raised its price target to $28 from $13, implying roughly 59% upside from Monday’s close. “We are upgrading RIOT to BUY on a Corsicana lease with highly favorable economics (average 33% yield),” analyst Jonathan Petersen said in a note to clients. “The powered land lease lets RIOT monetize the site with less execution and financing risk. It also cuts capex to $6M per IT [megawatts] versus $11-15M for a typical data center build.”
The powered land lease is expected to remain valid for 15 years, beginning in September 2027. The agreement should deliver a 33% average yield per year at half the usual capital, Petersen added. Riot can fund the project with project debt or through a tenant in exchange for a rent credit. “We see RIOT’s Corsicana deal as a reset for the market,” the analyst wrote. “Pairing ready power with the tenant’s modular solution improves speed to market, while the powered-land structure reduces RIOT’s capital needs and shifts meaningful execution risk to the tenant.”
Jefferies’ call aligns with Wall Street consensus, according to LSEG data. All 23 analysts covering Riot have a buy or strong buy rating on the stock, according to LSEG data. Shares have jumped 39% year to date.
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