Riot Bolsters Board for AI, HPC Bitcoin Mining Shift

Riot Platforms, a leading Bitcoin miner, has bolstered its board with the appointment of three new directors, each bringing valuable experience in transitioning Bitcoin mining assets towards artificial intelligence (AI) and high-performance computing (HPC). The new additions, Jaime Leverton, Doug Mouton, and Michael Turner, collectively possess expertise in converting BTC mining assets for potential AI and HPC use, along with data center and real estate experience, as stated by Riot in a February 13 statement.

Riot's executive chairman, Benjamin Yi, expressed confidence in the new board members, stating that their expertise will be immediately applicable in maximizing the value of the company's unique assets. Leverton, formerly the CEO of Hut 8 Mining Corp, led the firm's expansion into the HPC space by acquiring TeraGo's data center business. Mouton, a member of the advisory board for Fidelis New Energy, brings experience in developing zero-carbon power facilities and previously served as senior engineer lead for datacenter design and construction at Meta. Turner, the former president of global real estate investor Oxford Properties Group, offers deep real asset investment and capital allocation experience.

The appointment of these directors comes amidst a shift in the Bitcoin mining landscape, following the halving event in April 2020, which reduced mining rewards from 6.25 to 3.125 Bitcoin per 210,000 blocks. This change has led some mining companies to explore diversifying their income streams, including a growing interest in AI. A report by CoinShares in October 2020 suggested that less profitable BTC mining may be driving this trend. Additionally, asset manager VanEck estimated that if publicly traded Bitcoin mining companies shifted 20% of their energy capacity to AI and HPC by 2027, they could increase additional yearly profits by $13.9 billion over 13 years.

Riot CEO Jason Les emphasized the company's commitment to advancing its AI/HPC evaluation process, aiming to maximize value for its entire portfolio of assets. However, Riot cautioned that there is no guarantee that its existing assets are suitable for AI/HPC conversion, that the change can be achieved on financially advantageous terms, or that an AI/HPC partnership can be negotiated. Despite these uncertainties, the appointment of the new directors signals Riot's intent to explore new opportunities in the rapidly evolving Bitcoin mining landscape.