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D.E. Shaw's Bitcoin Bet: Hedge Fund Acquires Stake in Riot Platforms

Coin WorldWednesday, Jan 29, 2025 4:26 pm ET

1min read

D.E. Shaw, a prominent hedge fund, has acquired a stake in Riot Platforms, a leading bitcoin mining firm, potentially signaling a push for strategic changes within the company. The size of D.E. Shaw's position remains undisclosed, and both Riot and D.E. Shaw have declined to comment on the matter.

This development comes on the heels of Starboard Value's undisclosed stake in Riot last year, during which the activist investor urged the company to consider allocating some of its power capacity to artificial intelligence. In response, Riot recently announced a formal review of AI and high-performance computing applications at its Corsicana, Texas, facility.

Riot's stock is currently trading at $10.98, down around 1.2% on the day. The company, valued at $3.8 billion, attempted to acquire rival miner Bitfarms last year, but the deal ultimately fell through. Instead, the two companies agreed to board changes at Bitfarms.

D.E. Shaw, which manages $70 billion in assets, is primarily known for quantitative investing but occasionally engages in activist strategies, typically negotiating behind the scenes. The firm recently took a stake in Air Products and Chemicals, working alongside activist investor Mantle Ridge Capital to push for leadership and capital allocation changes.

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