Riot Platforms eyes AI partnerships amid Bitcoin mining strain
Riot Platforms is exploring partnerships in artificial intelligence (AI) and high-performance computing (HPC) to expand its business and diversify revenue sources.
The company is evaluating AI and HPC applications at its Corsicana Facility in Navarro County, Texas, following increased interest from potential partners.
This move aligns with a broader trend among Bitcoin (CRYPTO:BTC) miners leveraging their infrastructure for revenue beyond cryptocurrency mining.
Jaehyun Ha, a research analyst at Presto Research, noted that financial strain is pushing miners to seek new revenue streams.
Riot CEO Jason Les stated the company aims to "maximise value" across its portfolio.
To support this transition, Riot appointed Jaime Leverton, Doug Mouton, and Michael Turner as directors, all with experience in AI and data centers.
Leverton previously led Hut 8 Mining Corp’s expansion into HPC through the acquisition of TeraGo’s data center business.
Riot has halted plans for a 600 MW Phase II Bitcoin mining expansion at the Corsicana Facility but will proceed with substation development to increase power capacity.
The company now expects to end 2025 with a hash rate capacity of 38.4 EH/s, down from the previously projected 46.7 EH/s.
Bitcoin network mining difficulty reached a record high of 114.7 terahashes on February 10, while mining hardware revenue has declined to $10.4 per day for an average ASIC unit like the Antminer S21+ Hydro.
Despite these challenges, public crypto firms are outperforming the market, with their total market capitalisation rising by 14% to $108 billion, according to JPMorgan.
As of February 13, Riot's stock was up 0.2% to $11.16.
The company cautioned that there is no guarantee its assets will be suitable for AI and HPC conversion or that partnerships will be successfully negotiated.
Riot also operates Bitcoin mining facilities in Rockdale, Texas, and Kentucky, along with electrical switchgear engineering operations in Colorado.
At the time of reporting, the Bitcoin (BTC) price was $96,052.75.
