The hedge fund D.E. Shaw has acquired a stake in the Bitcoin mining company Riot Platforms, possibly aiming at strategic changes within the company.
D.E. Shaw's Acquisition in Riot Platforms
Hedge fund D.E. Shaw has acquired a stake in the Bitcoin mining company Riot Platforms, Reuters reported, citing sources familiar with the matter. The size of the fund’s position remains undisclosed, and both Riot and D.E. Shaw declined to comment. This marks the second activist investor to show interest in Riot within a year, following Starboard Value.
Riot's Response and Strategic Initiatives
In response to Starboard's involvement, Riot recently announced a formal review of AI and high-performance computing applications at its Corsicana, Texas, facility. Riot’s stock is trading at $10.98 at the time of writing, down around 1.2%.
Riot's Competition with Bitfarms
Last year, Riot, valued at $3.8 billion, attempted to acquire rival miner Bitfarms, but the deal fell through. Instead, the companies agreed on board changes at Bitfarms. D.E. Shaw is primarily known for quantitative investing but occasionally employs activist strategies, including recent moves in Air Products and Chemicals.
D.E. Shaw's purchase of a stake in Riot Platforms may set a new direction for the company, given the fund's history of activism. Time will tell how this affects Riot’s strategic initiatives.
