Riot Pivots to AI and HPC, Bolsters Board with Tech Heavyweights

Riot Platforms, North America's leading Bitcoin miner, has made a strategic pivot by expanding its board of directors to include three new members, signaling a significant shift towards artificial intelligence (AI) and high-performance computing (HPC).

The company, which has been seeking new revenue streams amidst declining mining profitability, has appointed Eryn Leverton, former CEO, to oversee Bitcoin mining infrastructure and integrate AI into operations. Additionally, Michael Turner, former President of Oxford Properties, and Doug Mouton, with extensive experience at Microsoft and Meta, have joined the board, bringing valuable expertise in leadership and tech-driven scalability.

With these appointments, Riot's AI and HPC board now consists of six members, including existing members Hannah Cho and Hubert Marleau. Benjamin Yi, Riot's Executive Chairman, expressed confidence in the new additions, stating that they bring complementary expertise that will be immediately applicable to the company's growth.

Riot's expansion into AI and HPC appears to be a strategic response to the changing economy of the digital asset industry. The company is exploring the use of its power assets in Texas for AI and HPC, and has hired financial advisors and data center experts to assist in this process. While Riot has received interest from potential partners, it has cautioned that a beneficial deal for shareholders is not guaranteed.

Analysts at JPMorgan and Bernstein have viewed Riot's move from Bitcoin mining to AI as a positive step, indicating that the company is adapting to the evolving market landscape. Although Riot's stock experienced a slight increase of 0.2% on Wednesday, it dropped by 0.4% in pre-market trading on Thursday to $11.12.