Riot Platforms again eyed for change by activist investor
Investment firm D.E. Shaw has acquired a stake in Riot Platforms and is advocating for changes within the Bitcoin miner. The firm, known for its extensive assets and complex financial models, is the second activist shareholder to target Riot recently, following Starboard, which has suggested repurposing some of Riot's Bitcoin mining operations to cater to large data center users, particularly those in AI. Amidst climbing Bitcoin mining difficulties and increasing AI-related ventures, Riot has initiated a formal evaluation to switch 600 megawatts of power at its Corsicana site to support AI and high-performance computing, moving away from traditional Bitcoin mining. Riot's shares saw a slight increase, but they are down almost 3% over the past year as the company struggles to achieve net income. In the past, Riot also attempted to control rival Bitfarms but eventually backed off from that engagement. The developments indicate a significant interest in altering the focus and operational strategy of Riot Platforms in the evolving cryptocurrency landscape.
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