D.E. Shaw takes stake in Riot, may push for changes

D.E. Shaw has acquired a stake in bitcoin mining firm Riot Platforms and may push for strategic changes, Reuters reported, citing sources familiar with the matter. 

The size of the hedge fund’s position remains undisclosed, and both Riot and D.E. Shaw declined to comment.

This marks the second activist investor to take an interest in Bitcoin (BTC) miner Riot, following Starboard Value’s undisclosed stake last year. Starboard has urged Riot to consider allocating some of its power capacity to artificial intelligence.

In response, 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% on the day.

Riot vs. Bitfarms

Riot, valued at $3.8 billion, attempted to acquire rival miner Bitfarms last year, but the deal fell through. Instead, the two companies agreed to board changes at Bitfarms.

D.E. Shaw, which manages $70 billion in assets, is primarily known for quantitative investing but occasionally engages in activist strategies, typically negotiating behind the scenes.

The firm recently took a stake in Air Products and Chemicals, working alongside activist investor Mantle Ridge Capital to push for leadership and capital allocation changes.