In a surprising turn of events, Riot Platforms, a prominent Bitcoin mining company, has announced a significant change in its board of directors. The decision to appoint three new directors comes following suggestions from influential investors Starboard Value and D.E. Shaw. This development comes on the heels of a previous report by Reuters in January, indicating that D.E. Shaw, renowned for its use of quantitative investment strategies, had taken a stake in Riot Platforms and could potentially advocate for strategic alterations.
The past year has seen Starboard Value also making undisclosed investments in Riot Platforms, urging the company to explore the utilization of its power capacity for artificial intelligence purposes. While D.E. Shaw has chosen to remain silent on the matter, Starboard Value, as an activist investor, has yet to respond to inquiries made by Reuters.
Riot Platforms disclosed that the newly appointed directors, namely Jaime Leverton, Doug Mouton, and Michael Turner, possess extensive experience in overseeing the transition of Bitcoin mining assets for potential applications in artificial intelligence or high-performance computing (HPC). Furthermore, the company has enlisted the services of Evercore and Northland Capital to assess the feasibility of leveraging the remaining power capacity at its Corsicana, Texas, facility for AI and HPC initiatives in order to maximize operational efficiency.
With a market valuation of approximately $3.8 billion, Riot Platforms had expressed interest in acquiring competitor Bitfarms last year. Although a sale agreement was not reached, both companies did agree on modifications to Bitfarms’ board structure. Expectations within the cryptocurrency industry have been buoyed by the belief that the administration of former President Donald Trump could lead to regulatory relaxations, providing a potential boost to the sector.
(Reporting by Kanjyik Ghosh and Mrinmay Dey; Editing by Subhranshu Sahu and Rashmi Aich)
