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"D.E. Shaw, Starboard Value Join Forces to Push Riot Platforms for Change"

Coin WorldThursday, Jan 30, 2025 6:22 am ET

1min read

Bitcoin miner Riot Platforms is facing increased investor pressure following the involvement of prominent investment firms D.E. Shaw and Starboard Value. D.E. Shaw, a $70 billion asset manager, has reportedly acquired a stake in Riot, signaling potential strategic changes for the company. While the exact size of D.E. Shaw's position remains undisclosed, the firm is known for its strategic investments and may push Riot to adopt new approaches or restructure certain aspects of its business.

This development comes on the heels of Starboard Value's significant stake acquisition in Riot in December. Starboard, known for its activist approach, is likely to pursue changes aimed at improving profitability or corporate strategy. The Wall Street Journal reported that Starboard wants Riot to convert some of its bitcoin-mining facilities into space for big data center users. The combination of D.E. Shaw and Starboard's involvement suggests that Riot may face increased pressure to enhance shareholder value, streamline operations, or consider new business opportunities.

Riot Platforms, formerly known as Riot Blockchain, has been expanding its Bitcoin mining operations in response to growing demand for crypto. As of the end of 2024, Riot owned 17,722 BTC, a 141% increase from December 2023. Riot also mined 516 BTC in December, exceeding November's output. Separately, Riot made an unsolicited offer of $950 million in May 2024 to acquire Canadian Bitcoin miner Bitfarms. However, Bitfarms implemented a shareholder rights plan, commonly known as a "poison pill," to prevent a hostile takeover. Riot and Bitfarms later finalized a settlement, ending the acquisition bid.

The involvement of activist investors like D.E. Shaw and Starboard in Riot Platforms has been viewed positively by many in the crypto community. "Hedge fund giant D.E. Shaw has acquired a stake in Riot Platforms, signaling a bullish outlook on crypto mining. Could this be a game-changer for the industry?" posted one X user. Another crypto enthusiast commented, "D.E. Shaw's recent acquisition of a stake in Riot Platforms marks a significant move in the cryptocurrency mining sector. This strategic investment highlights the growing interest and potential in the crypto market as it evolves."

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