Riot Platforms Explores AI Partnerships and Appoints New Directors to Diversify Bitcoin Mining Business

Riot appoints adviser with experience pivoting BTC mining assets to AI

Bitcoin miner Riot Platforms has appointed three new directors to its board, one of which has experience in the conversion of Bitcoin mining assets toward artificial intelligence and high-performance computing (HPC). The newly appointed Riot board members Jaime Leverton, Doug Mouton and Michael Turner. Collectively, the three of them have experience with overseeing the conversion of Bitcoin Riot executive chairman Benjamin Yi said that the new additions to the board will bring "immediately applicable" expertise as they look to best "maximize the value of our unique assets." Leverton was formerly the CEO of Bitcoin miner Hut 8 Mining Corp and was behind the helm when the firm expanded into the HPC space by acquiring TeraGo's data center business. Mouton is a member of the advisory board for Fidelis New Energy, a company that develops zero-carbon power facilities and was previously senior engineer lead for datacenter design and construction at social media giant Meta. Turner is the former president of global real estate investor Oxford Properties Group and, according to Riot, brings "deep real asset investment and capital allocation experience." After the halving last April 20, mining rewards were cut from 6.25 Bitcoin to 3.125 Bitcoin per 210,000 blocks. An October report from CoinShares speculated that less profitable BTC mining "may explain the rising trend of mining companies diversifying their income streams to include AI." In an August report, 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. Related: Riot Platforms buys more than $500M in Bitcoin Riot CEO Jason Les said the firm is continuing to "advance our AI/HPC evaluation process as we seek to maximize value for our entire portfolio of assets." However, Riot said that despite the new hires, there is no guarantee 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. Investment firm D.E. Shaw reportedly built an unknown-sized stake in Riot, and last month, Reuters reported that the investor was planning to push changes on the miner, citing two sources familiar with the matter.

Riot Taps Advisors to Explore AI Partnerships as Bitcoin Miners Eye New Revenue Streams - Decrypt

On Wednesday, bitcoin mining company Riot Platforms said it is exploring partnerships in the artificial intelligence and high-performance computing sector as it aims to shore up its business and generate sustainable revenue streams. The NASDAQ-listed company said it would ramp up evaluations for potential AI and high-performance computing (HPC) uses at its Corsicana Facility in Navarro County, Texas, citing increased interest from multiple potential partners. Riot's exploration of AI computing capabilities reflects a growing trend among Bitcoin miners to leverage their substantial power infrastructure and data center expertise for additional revenue opportunities beyond crypto mining. The move comes as mining difficulty on the Bitcoin network has reached a historic high, peaking at 114.7 terahashes when it arrived at block height 883,502 on February 10, data from CoinWarz shows. Meanwhile, revenue from Bitcoin mining hardware has significantly dropped over the year, to as low as $10.4 a day over an operating margin of 60% for an average ASIC unit like the Antminer S21+ Hydro, according to data from Hashrate Index. Alongside its AI explorations, Riot appointed three new directors with relevant expertise: Hut 8 Mining CEO Jaime Leverton, former Meta senior engineer Doug Mouton, and real estate investment veteran Michael Turner. Moving in to explore AI and high-performance computing is part of Riot's initiatives to "maximize value" for its "entire portfolio of assets," Riot CEO Jason Les said in a statement to Decrypt. Similar strategic shifts by other major crypto mining operators are at play. Leverton, who just joined Riot's board, previously led her company's expansion into HPC by acquiring TeraGo's data center business. Companies such as Hut 8 and Core Scientific are repurposing their infrastructure for AI workloads, leveraging existing power access and data centers. These diversification moves are also aimed at reducing dependence on Bitcoin's price fluctuations while capitalizing on the growing demand for AI computing resources. However, the company cautioned there's no guarantee its assets are suitable for AI/HPC conversion or that partnerships can be negotiated on favorable terms. Still, Bitcoin mining and other public crypto firms are beating the market, with their overall market cap expanding by 14% to bring their valuations to $108 billion, according to JPMorgan. Riot also operates Bitcoin mining facilities in Rockdale, Texas, and Kentucky, along with electrical switchgear engineering operations in Colorado. The company's stock, which trades on the NASDAQ under the ticker RIOT, is up 0.2% on the day to $11.16, Google Finance data shows.