Riot Platforms Shifts Focus to AI Amid Investor Pressure

Riot Platforms, a Bitcoin mining company, has appointed three new board members with expertise in data centers and AI, signaling a strategic shift toward artificial intelligence and high-performance computing (HPC) to diversify its revenue streams. This decision follows pressure from activist investors for a re-evaluation of Riot's assets amidst a challenging cryptocurrency mining environment. The new board members, Jaime Leverton, Doug Mouton, and Michael Turner, bring experience in transitioning crypto operations to AI applications and managing large-scale infrastructure. Riot has engaged investment banks Evercore and Northland Capital Markets to explore AI and HPC opportunities at its Texas-based Corsicana Facility. This move aligns with a broader trend among Bitcoin miners to leverage existing resources for AI, driven by reduced profitability in crypto mining due to increased mining difficulty and reduced Bitcoin rewards. Riot's CEO, Jason Les, emphasizes the potential to maximize the value of the company's assets through these new initiatives.