D.E. Shaw Acquires Stake in Riot Platforms

A second activist investor, D.E. Shaw, has built a stake in Riot Platforms, according to Reuters. This follows another activist, Starboard Value, which has requested changes at Riot.

On December 12, 2024, The Wall Street Journal reported that Starboard Value wanted Riot to convert some bitcoin-mining facilities into capacity for hyperscalers. At that time, Riot’s stock was down 25%, as miners faced profitability challenges after the Bitcoin halving in April.

Starboard’s proposal suggests that Riot follow a similar path to Core Scientific, a bitcoin miner collaborating with Nvidia-backed CoreWeave to enhance power infrastructure for cloud computing operations.

Riot Platforms announced last week that it is exploring opportunities in artificial intelligence and high-performance computing (HPC). The company is also reducing its previously planned self-mining hash rate capacity growth and associated capital expenditures for 2025.

CEO Jason Les stated, “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 process that prioritizes shareholder interests.”

As of early 2025, Riot’s stock is up about 5%, aligning with the trading value during the announcement of the Starboard stake. Riot has a market capitalization of $3.8 billion, according to The Block’s RIOT price data.

According to Reuters, D.E. Shaw is recognized for using quantitative investment methods to drive returns and occasionally pursues an activist strategy, though it seldom engages in public boardroom confrontations. Notably, one of its alumni is Jeff Bezos, who served as a vice president at the firm before founding Amazon.