Shares of Bitcoin mining company Riot surged by nearly 9% following a recommendation from activist investor Starboard to expand the company’s AI data centers using its existing 1.7 gigawatt power capacity in Texas. Starboard highlighted that Riot’s robust infrastructure could be leveraged for premium AI hosting contracts, potentially boosting the company’s revenue. Riot, known for its energy-efficient Bitcoin mining operations, is headquartered in Texas—a state favored by crypto firms due to low energy costs and favorable regulations. By converting its current power capacity to support AI data centers, Riot could enter a rapidly growing market driven by increasing demand for large-scale computing power. While this expansion presents opportunities for technological innovation and profitability, it also involves challenges such as investment requirements, technical adjustments, and competitive market dynamics. If successful, Riot’s AI data center growth could further elevate its stock value, though risks remain from energy price volatility and crypto market uncertainties.
Source: coindesk
