D.E. Shaw, a prominent investment firm, has acquired a stake in Riot Platforms, a top Bitcoin miner, raising concerns among activists. The fund, which controls $70 billion in assets, may urge Riot to implement big operational reforms, similar to the previous activist investor, Starboard Value.
Riot has been attacked by activist investors for the second time in the last several months. Late last year, Starboard Value purchased a large stake in Riot, pressing the firm to investigate the usage of its mining capabilities for high-performance computing (HPC) to meet the growing demand from the AI industry. Riot has already begun exploring ways to repurpose some of its power capacity for this purpose.
While D.E. Shaw’s exact position in Riot is unknown, its reputation for quietly influencing the companies it targets suggests that it may make similar moves behind the scenes. The rising interest from activist investors comes as Bitcoin mining profitability has suffered, particularly since the Bitcoin halving, causing many miners to seek alternate sources of cash.
Riot has already adjusted its approach to reflect the change to AI and HPC, recognizing the increasing value of such initiatives as Bitcoin mining becomes more competitive. Riot’s huge energy capacity and potential for expansion in the AI field may position it for a transition in the coming months, fueled by both its investors and broader market factors.
