Riot Platforms Shifts Focus from Bitcoin Mining to AI and HPC

Listed cryptocurrency miner Riot Platforms has announced a strategic pivot from Bitcoin mining to exploring opportunities in artificial intelligence (AI) and high-performance computing (HPC).

The company plans to utilize approximately 600 megawatts (MW) of unused power capacity for these applications. This decision has led Riot to pause its Phase II Bitcoin mining expansion at the Corsicana site, originally intended to add another 600 MW of mining capacity.

Broader Strategic Goals

Riot’s move aligns with its strategy to diversify revenue streams and tap into the booming AI/HPC sector. According to Benjamin Yi, Riot’s Executive Chairman:

“While we continue to believe in the significant upside of our Bitcoin mining operations, we have recognized for some time the value of having long-term, predictable cash flows from a well-capitalized AI/HPC counterparty.”

Adjusted Mining Targets

As part of this shift, Riot has revised its 2025 self-mining hash rate capacity target:

• Previous target: 46.7 EH/s
• New target: 38.4 EH/s

The company also anticipates a $245 million reduction in capital expenditures for the Corsicana facility, reflecting its evolving priorities.

Bitcoin Mining Operations

Despite the pivot, Riot’s existing Bitcoin mining operations at its facilities in Corsicana, Rockdale, and Kentucky will continue as planned.

Key highlights from recent Bitcoin mining performance:

• December 2024 production: Up 4% month-over-month but down 17% year-over-year.
• Bitcoin holdings: Increased to 17,722 BTC by the end of December, a 141% year-over-year increase.

Financial Moves

Riot has maintained profitability, reporting 19.4% revenue growth over the past year. The company also raised:

• $594.4 million from a convertible senior notes offering.
• Plans to raise an additional $500 million for further Bitcoin acquisitions and corporate purposes.

CEO Comments

Riot CEO Jason Les emphasized the significance of the pivot:

“Our focus has always been on maximizing the potential of our assets and ensuring that any agreement we enter into with an AI/HPC counterparty would be the result of an informed, thorough process that puts the best interests of all our shareholders first.”

Les acknowledged the challenges of converting Bitcoin mining facilities for AI/HPC use but expressed optimism about the potential returns from the 600 MW of available capacity at Corsicana.

Riot’s shift from Bitcoin mining to AI and HPC represents a calculated step to diversify operations, reduce costs, and explore new revenue streams. With the global AI and HPC markets expanding rapidly, this strategic move could position Riot as a key player in both traditional and emerging technologies.