Activist Investors Urge Riot Platforms to Stop Mining and Focus on AI

▲ Bitcoin (BTC) mining / AI-generated image

An explosive analysis suggests that Riot Platforms (RIOT) could see its corporate value surge by more than $21 billion if it shifts away from its existing Bitcoin (BTC) mining business and transforms into an artificial intelligence data center operator.

According to cryptocurrency-focused media outlet Decrypt on February 19 (local time), activist investment firm Kerrisdale Capital released a report urging Riot Platforms to convert its extensive power infrastructure toward artificial intelligence (AI) and high-performance computing (HPC). Kerrisdale Capital stressed that focusing solely on Bitcoin mining wastes the company’s potential and called for a strategic overhaul.

Kerrisdale Capital emphasized that the more than one gigawatt of power capacity secured by Riot Platforms in Texas and other regions is a critical resource for AI computation. By shifting from Bitcoin mining to leasing infrastructure to major technology companies such as Amazon and Google, the firm could generate approximately $21 billion in additional value. This figure far exceeds Riot Platforms’ current market capitalization.

Sahm Adrangi, Chief Investment Officer of Kerrisdale Capital, pointed out that despite owning one of the most valuable power infrastructures in the world, Riot Platforms remains committed to the relatively low-margin Bitcoin mining business. Adrangi noted that competitors such as Core Scientific and Iris Energy have already experienced surging stock prices after transitioning to AI infrastructure.

Crypto analytics firm Santiment analyzed that as mining profitability has deteriorated following Bitcoin’s halving, the shift toward AI among mining companies is becoming an industry-wide trend. If Riot Platforms significantly expands its supply of graphics processing units (GPUs) for high-performance computing and reinvents itself as a data center operator, it is expected to attract substantial institutional investment. The convergence of artificial intelligence and blockchain has become an irreversible trend.

Whether Riot Platforms’ management will accept this external pressure and undertake a comprehensive business restructuring remains the market’s biggest question. With a massive $21 billion opportunity at stake, the company’s decision could become a critical turning point determining the future direction of crypto-related stocks. The ability to leverage infrastructure is entering a new phase that goes beyond simple Bitcoin mining efficiency.

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