Riot Platforms Pivots from Bitcoin Mining to AI: A Strategic Shift in the Tech Landscape

What's Going On With Shares Of Bitcoin Miner Riot Platforms Tuesday? - Riot Platforms (NASDAQ:RIOT)

Riot will halt the development of its previously announced 600 megawatt Bitcoin mining expansion at the Corsicana Facility. Riot Platforms Inc RIOT shares are trading higher. The company on Tuesday announced that it halted its previously announced Bitcoin BTC/USD mining expansion to evaluate AI and high-performance computing (HPC) opportunities. What Happened: Riot announced that it's launching a formal process to evaluate the potential development of the approximately 600 megawatts of remaining power capacity at the company's Corsicana Facility for AI/HPC use cases. The company has engaged data center industry consultant Altman Solon and other industry experts to assess the potential opportunity. Riot noted that it also plans to accelerate engagement with potential AI/HPC partners. "While any conversion of our existing Bitcoin mining facilities to AI/HPC use presents meaningful challenges and investments of time, we believe there is a significant opportunity to maximize the value of the 600 MW of remaining capacity available at the Corsicana Facility and deliver substantial benefit for our shareholders," said Jason Les, CEO of Riot. Riot currently utilizes 400 megawatts of power capacity at the facility, but it's approved for a total capacity of up to one gigawatt. The company said it's halting the development of its previously announced 600-megawatt Phase II Bitcoin mining expansion at the Corsicana Facility. Check This Out: EXCLUSIVE: Trump Does Not Establish Bitcoin Reserve, Crypto-Friendly Policies On Day 1 -- And Now? As a result of the mining expansion halt, Riot now expects to end the year with 38.4 EH/s of hash rate capacity, down from its previous guidance of 46.7 EH/s of hash rate capacity. Capital expenditures at the Corsicana Facility are now expected to be reduced by $245 million in 2025. Riot said it will provide additional updates as the review process progresses. Riot investors appear to be responding favorably to the strategic pivot. Shares may also be getting a lift Tuesday morning as Bitcoin continues to climb. Bitcoin was up about 8.5% over the past week, hovering around $104,450 at the time of publication. RIOT Price Action: Riot Platforms shares were up 5.1% at $14.07 at the time of publication, according to Benzinga Pro. Photo: Shutterstock. RIOTRiot Platforms Inc$14.004.56%Overview Rating:Speculative50%Technicals Analysis1000100Financials Analysis200100WatchlistOverview$BTCBitcoin$104981.392.77%Market News and Data brought to you by Benzinga APIs

Riot's AI Pivot Over Bitcoin Mining: Analyst Says 'Encouraging' Move - Riot Platforms (NASDAQ:RIOT)

Riot's pause in bitcoin mining expansion and reduced 2025 targets reflect a strategic pivot to AI. Riot Platforms Inc RIOT made a strategic pivot that is shaking up its future trajectory. The company announced it would pause its Bitcoin BTC/USD mining expansion at Corsicana and instead conduct a feasibility study on converting its remaining capacity to AI and high-performance computing (HPC) use. This move has sparked a positive response from JPMorgan analyst Reginald L. Smith, who says he finds the decision "encouraging." Analyst Reaction: A Positive Shift For Riot Smith has been advocating for Riot to explore AI at its Corsicana facility and this announcement aligns with his long-held views. In his report, he describes the move as "encouraging," noting that the feasibility study is an important step in Riot's potential future diversification. The analysts' stance reflects a growing belief that Riot could tap into a new revenue stream beyond the fluctuating world of cryptocurrency mining. Read Also: Riot's Crypto Mining Success Spurs Investor Interest With Defiance's New ETF Potential For AI Success At Corsicana One of the key reasons behind Smith's optimism is the Corsicana site's scale and location. Riot's 400 MW Corsicana facility is one of the few bitcoin mining sites in the country that meets the criteria for AI and HPC workloads. The site is within 100 miles of major metro areas, which is crucial for high-latency AI applications. While there are no guarantees, Smith sees the opportunity as significant, especially as Riot accelerates its outreach to potential AI partners. Impact On Riot's Bitcoin Mining Future While Smith is bullish on the AI pivot, there are trade-offs. Riot is scaling back its 2025 bitcoin mining goals, lowering its hashrate target by 19% to 38.4 EH/s and cutting its capital expenditures for the year by $245 million. These reductions reflect a shift in resources, but analysts remain hopeful that this new direction will pay dividends in the long run. While the AI shift might bring short-term uncertainties, Smith's encouraging outlook suggests that this could be the beginning of a transformative phase for Riot Platforms. Investors will be watching closely to see how the feasibility study unfolds. Read Next: Bitcoin Miners Consolidate Power: 12 Firms Now Control 30% Of Network Hash Rate $BTCBitcoin$106239.104.00%WatchlistOverviewRIOTRiot Platforms Inc$13.12-2.05%Market News and Data brought to you by Benzinga APIs