"D.E. Shaw Joins Riot Platforms' Activist Investor Roster; AI Ventures Lure Crypto Miners"

Riot Platforms, a leading Bitcoin miner, has once again caught the attention of an activist investor. According to a recent report, investment firm D.E. Shaw has acquired a stake in the company and could potentially push for changes. D.E. Shaw, with $70 billion in assets, is known for its sophisticated mathematical models that exploit financial markets for gains. The firm is also known for its discreet approach to negotiations with company executives.

This is not the first time Riot Platforms has faced pressure from activist shareholders. Late last year, hedge fund Starboard Value reportedly took a significant position in the crypto miner. Starboard has urged Riot to repurpose some of its Bitcoin mining operations to power large data center users, a suggestion that Riot has acknowledged discussing.

In recent months, many crypto miners have been renting out parts of their operations to support artificial intelligence (AI) ventures. The difficulty of mining Bitcoin has increased, and the competitive field has tightened, making AI-related ventures an attractive alternative. On Jan. 21, Riot announced it would launch a formal evaluation into switching over 600 megawatts worth of power at its Corsicana, Texas, site to support AI and high-performance computing.

Shares in Riot Platforms (RIOT) closed up nearly 2.5% to $11.22 on Jan. 29, following two days of losses seen across other public crypto miners. However, RIOT saw a slight drop of nearly 0.3% in after-hours trading on the same day. Despite the recent fluctuations, RIOT is up nearly 10% so far this year but is down nearly 3% over the last 12 months.

The crypto industry is hopeful that US President Donald Trump's promises to cut regulatory oversight of the crypto industry and boost local Bitcoin mining will bring tailwinds to the sector. Riot has also engaged in its own activist investing, looking to take over rival Bitcoin miner Bitfarms last year, although the deal ultimately fell through.