By Nermeen Nabil Khear TLDR
- Riot Platforms, a major Bitcoin mining company, is exploring partnerships in AI and high-performance computing, specifically targeting its Corsicana Facility in Texas for potential conversion amid declining mining revenues
- The company appointed three new board members with expertise in data centers, real estate, and mining operations: Jaime Leverton, Doug Mouton, and Michael Turner
- Bitcoin mining difficulty reached a record high of 114.7 terahashes at block height 883,502 on February 10, while mining hardware revenue dropped to $10.4 per day for average ASIC units
- Riot hired investment banks Evercore and Northland Capital Markets to lead discussions with potential AI and HPC partners
- This move follows an industry trend where Bitcoin miners like Core Scientific and Hut 8 are diversifying into AI computing to create new revenue streams
Riot Platforms, one of the largest Bitcoin mining companies in North America, announced on Wednesday its plans to venture into artificial intelligence and high-performance computing partnerships. The company is specifically examining opportunities to repurpose its Corsicana Facility in Navarro County, Texas, following increased interest from multiple potential partners.
The NASDAQ-listed company has taken concrete steps toward this transition by appointing three new directors to its board. These additions bring specialized expertise in areas crucial for the planned expansion. The new board members include Jaime Leverton, former CEO of Hut 8 Mining, Doug Mouton, who previously served as a senior engineer at Meta, and Michael Turner, a veteran in real estate investment who formerly led Oxford Properties and served as global head of real estate at OMERS, one of Canada’s largest pension funds.
To facilitate these new partnerships, Riot has engaged investment banks Evercore and Northland Capital Markets to lead discussions with potential AI and high-performance computing partners. This move comes at a time when Bitcoin mining operations face mounting challenges in their traditional business model.
Recent data from CoinWarz shows that Bitcoin mining difficulty reached an all-time high of 114.7 terahashes at block height 883,502 on February 10, 2025. This increase in difficulty has put extra pressure on mining operations across the industry.
The impact of these challenges is reflected in the revenue generated from Bitcoin mining hardware. According to data from Hashrate Index, daily revenue has fallen to $10.4 for an average ASIC unit like the Antminer S21+ Hydro, operating at a 60% margin.
Research analyst Jaehyun Ha from Presto Research points to various on-chain indicators suggesting miners are experiencing financial pressure, which has led them to seek alternative revenue sources. This trend has prompted several major players in the crypto mining sector to explore new business opportunities.
Artificial Intelligence
Riot’s exploration of AI computing capabilities aligns with similar moves by other industry players. Hut 8 Mining, under the leadership of newly appointed Riot board member Jaime Leverton, previously expanded into high-performance computing through its acquisition of TeraGo’s data center business.
Core Scientific, another major player in the crypto mining sector, has been developing AI-focused infrastructure since 2019. These companies are leveraging their existing power infrastructure and data center expertise to tap into the growing demand for AI computing resources.
Riot CEO Jason Les stated that the move into AI and high-performance computing is part of the company’s strategy to maximize value across its asset portfolio. However, the company has acknowledged that there are no guarantees its assets will be suitable for AI or HPC conversion, or that partnerships can be secured on favorable terms.
Beyond its planned AI initiatives, Riot maintains an extensive mining operation. The company operates Bitcoin mining facilities in Rockdale, Texas, and Kentucky, alongside electrical switchgear engineering operations in Colorado.
Despite the challenges in the mining sector, Bitcoin mining companies and other public crypto firms have shown market resilience. According to JPMorgan, these companies have seen their overall market capitalization grow by 14%, reaching $108 billion.
The company’s stock, trading under the ticker RIOT on the NASDAQ, showed a 0.2% increase to $11.16 as of the latest trading data from Google Finance.
The post Riot Platforms Announces AI Computing Initiative and Board Appointments appeared first on Blockonomi.
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This articles is written by : Nermeen Nabil Khear Abdelmalak
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