Riot Platforms is currently facing attention from activist investor D.E. Shaw. This firm has built a stake in the Bitcoin mining company, according to a report by Reuters.
D.E. Shaw is based in Manhattan and manages about $70 billion in assets. They have taken an undisclosed position in Riot and may push for some changes within the company.
This isn't the first time Riot has caught the eye of an activist shareholder. Recently, hedge fund Starboard Value also took a significant position in the company. Starboard has suggested that Riot should shift some of its Bitcoin mining operations to serve large data center users. This area is booming due to the rise of artificial intelligence.
Riot has confirmed that they are in talks with Starboard. Many cryptocurrency miners are adapting by renting out parts of their operations to support AI initiatives. This shift comes as Bitcoin mining has become more challenging and competitive.
On January 21, Riot announced plans to evaluate switching over 600 megawatts of power at its Corsicana, Texas facility. This change would support AI and high-performance computing. Right now, that site uses 400 megawatts just for Bitcoin mining.
On January 29, shares of Riot Platforms (RIOT) rose nearly 2.5% to $11.22. This ended a two-day slump that other public crypto miners also experienced, according to Google Finance. So far this year, RIOT is up nearly 10%. However, it has dropped almost 3% over the past year as it struggles to achieve net income.
The crypto industry is hopeful. U.S. President Donald Trump has promised to reduce regulatory oversight and support local Bitcoin mining. This could provide a positive boost to the sector.
Interestingly, Riot is also engaging in its own activist investing. Last year, it sought to acquire rival Bitcoin miner Bitfarms. However, they ultimately decided to end that hostile takeover.