Riot Platforms faces investor push for $11 stock growth

Riot Platforms is once again under the scrutiny of activist investors, with investment firm D.E. Shaw acquiring a stake in the Bitcoin (CRYPTO:BTC) mining company.  

According to sources cited by Reuters on January 29, D.E. Shaw is expected to push for strategic changes within Riot, though the exact size of its stake remains undisclosed.

The firm is known for its discreet approach, often negotiating privately with companies to influence their direction.

This development follows a similar move by hedge fund Starboard Value, which took a significant position in Riot late last year.

Starboard has encouraged Riot to repurpose some of its Bitcoin mining operations to support data centers catering to artificial intelligence (AI) applications.

Riot has acknowledged discussions with Starboard and announced on January 21 that it would evaluate reallocating over 600 megawatts of power at its Corsicana, Texas site for AI and high-performance computing.

Currently, the site dedicates 400 megawatts to Bitcoin mining.

The push for diversification comes as Bitcoin mining faces increasing challenges, including rising competition and higher operational costs following Bitcoin’s fourth halving in 2024.

Shares of Riot Platforms closed at $11.22 on January 29, up nearly 2.5% after two consecutive days of losses.

Despite this recent uptick, the stock has struggled over the past year, declining nearly 3%, though it has gained almost 10% since the start of 2025.

Riot has also engaged in its own activist efforts, attempting a takeover of rival miner Bitfarms last year before mutually agreeing to abandon the plan.

As pressure mounts from both D.E. Shaw and Starboard Value, Riot may face significant changes in its operational focus amid growing interest in AI-related ventures and evolving market dynamics.