Riot HPC deal has ‘very favorable’ yield, says Roth Capital

Roth Capital analyst Darren Aftahi says Riot Platforms (RIOT)’ first high performance compute lease with AMD “marks a critical HPC pivot.” While “modest in size,” the deal offers a “very favorable” high-teens adjusted yield on cost and fast monetization, the analyst tells investors in a research note. Roth believes the lease validates Riot’s power and boosts credibility as it targets larger Tier 3 builds in Corsicana or the remainder of Rockdale. The firm has a Buy rating on the shares with a $42 price target The stock in afternoon trading is up 14%, or $2.30, to $18.88.