The Bitcoin mining company Riot Platforms (#RIOT ) is becoming the focal point for activist investors, as the giant investment fund D.E. Shaw has just purchased a stake in the company, according to reports from Reuters. This is the second investment fund targeting RIOT after Starboard Value, which has been involved since last year with the goal of steering Riot towards high-performance computing (HPC) and AI.
Actions of large investors
D.E. Shaw manages 70 billion USD in assets but their specific plans with Riot are unclear. This fund has a history of subtly influencing companies without being overly flashy in the media.
#StarboardValue (managing 9 billion USD) previously pressured Riot to convert part of its Bitcoin mining facilities into data centers serving AI and HPC.
Riot Platforms at a Crossroads
Riot is currently considering using 600 megawatts of capacity at one of its facilities to serve AI/HPC. This comes amid a backdrop of increasingly unprofitable Bitcoin mining after the recent halving, forcing companies to seek new directions to optimize revenue.
However, this industry has just been dealt a "cold shower" as China announced DeepSeek AI, an artificial intelligence platform that does not require much computational power from the US. This puts significant pressure on Bitcoin mining companies that are optimistic about AI, such as Core Scientific (CORZ), as their stock #CORZ has lost 30% of its value this week, while RIOT is down 18%.
What is the future for Riot Platforms?
Although Riot still plans to expand into the AI/HPC sector, given recent market developments, investors need to wait and see if the company can seize the opportunity. Meanwhile, RIOT's stock remains flat compared to the same period last year, with a slight increase of 1% today.