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Listed crypto miner Riot Platforms is shifting its focus away from Bitcoin to AI to in an effort to maximise its unused power.
In an announcement, Riot revealed it is exploring the potential of utilizing approximately 600 megawatts (MW) of unused power capacity for AI and high-performance computing (HPC) applications.
Riot has subsequently paused its Phase II Bitcoin mining expansion at its Corsicana site, which was originally expected to add another 600 MW of mining capacity.
The move fits with the company's broader strategy to expand its operations beyond Bitcoin mining and tap into the growing AI/HPC sector, which it believes can strengthen cash flows.
“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," Benjamin Yi, Executive Chairman of Riot explained.
"We look forward to providing further updates to our shareholders and the broader market as we and our advisors make progress toward this goal.”
Riot has managed to remain profitable over the past twelve months, posting a revenue growth of 19.4%, despite its relatively volatile stock price.
As part of this strategic pivot, Riot has revised its self-mining hash rate capacity target for 2025, reducing it from 46.7 EH/s to 38.4 EH/s, and updated its financial projects to anticipate a $245 million reduction in capital expenditures for the Corsicana facility.
Its existing mining operations at Corsicana, as well as at the company’s facilities in Rockdale and Kentucky, will continue as planned, maintaining Riot’s operational footprint in the Bitcoin mining space.
Riot has also posted a 4% increase in Bitcoin production for December 2024, but posted a year-over-year decline of 17%. The company’s Bitcoin holdings rose to 17,722 by the end of December, 141% increase compared to the previous year.
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The firm also raised $594.4 million from a convertible senior notes offering, and has plans to raise an additional $500 million for further Bitcoin acquisitions and other corporate purposes.
“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." said Jason Les, CEO of Riot.
"This is why we are taking the actions announced today. While any conversion of our existing Bitcoin mining facilities to AI/HPC use presents meaningful challenges and investments of time, we believe there is a significant opportunity to maximize the value of the 600 MW of remaining capacity available at the Corsicana Facility and deliver substantial benefit for our shareholders. We are excited to be taking these next steps and look forward to accelerating our process.”
