With Bitcoin mining revenue declining and network difficulty rising, Bitcoin mining company Riot Platforms is looking for opportunities to collaborate in the fields of artificial intelligence (AI) and high-performance computing (HPC) to create a more stable source of revenue.
🔍 Why did Riot change direction?
Bitcoin mining difficulty hits record high, causing financial hardship for miners.
Revenue from mining hardware has plummeted, to around $10.40 per day for a typical #asic machine.
Riot wants to take advantage of its existing energy infrastructure and data centers to diversify its revenue streams, avoiding dependence on Bitcoin price fluctuations.
🚀 Riot's New Strategy
Explore AI and HPC applications at Corsicana campus in Texas with interest from many potential partners.
Appointment of three new directors with experience in this field, including:
Jaime Leverton, CEO #Hut8 Mining, who led the company's expansion into HPC.
Doug Mouton, former senior engineer at Meta.
Michael Turner, real estate investment expert.
📈 General trends in the cryptocurrency mining industry
Not only Riot, other large mining companies such as Hut 8 and Core Scientific are also converting their infrastructure to serve AI to reduce dependence on Bitcoin price and take advantage of the increasing demand for AI computation.
The market value of public mining companies has increased 14% to $108 billion, according to JPMorgan.
⚠️ Risk warning:
While the AI transition plan is promising, #RIOT cautions that there is no guarantee that current assets are suitable for AI/HPC applications or that beneficial partnership agreements can be reached.
🔔 Conclusion:
Riot’s move into AI reflects a shift in strategy in the Bitcoin mining industry amid rising mining difficulty and unpredictable Bitcoin price volatility, and could be an important step in helping Riot stabilize its long-term revenue.