TLDR
- Riot Platforms is venturing into AI and high-performance computing ventures as they plan to potentially adapt their Corsicana Facility in Texas, due to the declining returns from Bitcoin mining.
- To navigate their new business direction, Riot Platforms onboarded three experts to their board: Jaime Leverton, renowned in data centers, Doug Mouton, experienced in technology engineering, and Michael Turner, accomplished in real estate investment and management.
- On February 10, at block 883,502, Bitcoin mining reached an unprecedented challenge with 114.7 terahashes of difficulty, coupled with a drop in hardware revenue to $10.4 daily for standard ASIC miners.
- Joining hands with investment firms Evercore and Northland Capital Markets, Riot is steering discussions towards engaging AI and HPC partnerships.
- Following the trend in the crypto space, companies like Core Scientific and Hut 8 are exploring AI computing to unlock new financial opportunities amidst the shifting mining landscape.
Riot Platforms, one of the largest Riot, a leading Bitcoin mining entity in North America, declared its intention to dive into AI and high-performance computing alliances, specifically eying its Corsicana Facility in Texas due to heightened interest from numerous potential collaborators. Listed on NASDAQ, Riot has proactively adjusted its board by appointing three directors, who bring invaluable industry insight critical for their envisioned expansion: Jaime Leverton, previously at Hut 8 Mining, Doug Mouton, a former Meta engineer, and Michael Turner, who has an extensive background in real estate with Oxford Properties and OMERS.
Through collaboration with Evercore and Northland Capital Markets, Riot aims to pioneer partnerships in AI and high-performance computing, moving away from traditional Bitcoin mining amid increasing economic pressures.
To facilitate these new partnerships, The Bitcoin mining space is experiencing significant pressure with recent data evidencing an all-time high in mining difficulty and putting even more strain on the operational viability of miners. Recent insights highlight the decreasing profitability from Bitcoin mining equipment, as daily earnings for typical units, like the Antminer S21+ Hydro, have dropped sharply.
Jaehyun Ha from Presto Research indicates that miners' financial hardships are prompting them to seek alternative revenue paths, signaling a major pivot among influential players in the crypto mining industry.
Riot's move to integrate AI computing aligns with similar strides by companies such as Hut 8, which under Jaime Leverton, has already expanded into high-performance computing through strategic acquisitions.
Core Scientific, another heavyweight in crypto mining, started building its AI infrastructure back in 2019, utilizing their impressive power and data center capabilities to meet the surging demand for AI resources.
Artificial Intelligence
CEO Jason Les commented that Riot's AI and high-performance computing pursuits are integral to their strategy for optimizing asset value, though he noted potential uncertainties in converting or securing lucrative partnerships.
Beyond its AI ambitions, Riot continues its extensive mining activities, with operations based in Rockdale, Texas, and Kentucky, and electrical engineering support from a facility in Colorado.
Despite facing hurdles, Bitcoin mining and public crypto firms have displayed resilience, with a 14% increase in market capitalization as documented by JPMorgan, reaching $108 billion.
Riot's shares, symbolized as RIOT on NASDAQ, experienced a minor uptick, climbing to $11.16, according to Google Finance's latest data.
As a seasoned journalist in the crypto and financial sectors, Maisie writes for several outlets including Moneycheck.com and level-up-casino-app.com, and leads as Editor in Chief at Blockfresh.com.
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