As a seasoned crypto investor with years of experience navigating the volatile and dynamic landscape of digital assets, I find the recent developments surrounding Riot Platforms intriguing. Starboard Value’s entry into Riot, a significant Bitcoin miner, is an exciting move that could potentially unlock substantial value for shareholders.
Starboard Value, an activist investor, has acquired a substantial stake in Bitcoin mining company Riot Platforms, according to The Wall Street Journal. The exact financial terms of the investment are unknown, but the announcement led to an increase in Riot’s stock price.
Looking to unlock Riot’s value
Based on reports from anonymous sources, it appears that Starboard Value is encouraging Riot to adapt a portion of its Bitcoin mining infrastructure to cater to hyperscale data centers – these are large-scale data users that have significantly increased in number as a result of the rapid growth in artificial intelligence technology.
The newspaper reported on a statement issued by Riot, indicating that discussions occurred between the involved parties. According to the report, Riot declared that such talks took place.
“We are committed to creating value for all shareholders, and we look forward to constructive dialogue with Starboard on ways to achieve this shared goal.”
As per their official site, Starboard focuses on finding businesses significantly undervalued in the market. They then collaborate closely with management and board members to pinpoint and implement strategies that maximize value for every shareholder.
Moving Riot onto the AI bandwagon
A number of miners have already shifted their operations towards high-speed data processing for computing and AI. Contrary to the prevailing trend, companies like Riot, MARA, and Cleanspark – which are publicly listed miners – have chosen not to follow suit as of August, according to VanEck’s fund manager.
These companies – Bit Digital, Core Scientific, Hive Digital, Hut 8, and IREN – have already moved towards a multi-purpose operation model.
On December 9th, Riot revealed its plan to secure $500 million by issuing senior convertible notes, which they intend to use for purchasing additional Bitcoin. Notably, this move mirrors the actions of at least seven other publicly traded Bitcoin mining companies and data centers that have taken similar steps.
This year, Riot’s stock experienced a significant drop of approximately 25%, as reported by the newspaper. It peaked at $17.64 on Valentine’s Day (Feb. 14) and plunged to $6.38 on September 6. However, following news about Starboard Value’s involvement, the stock price increased more than 10% on December 12. On that day, it ended the trading session with a gain of 4.8%, closing at $12.33.
Neither Riot nor Starboard Value responded immediately to a CryptoMoon request for comment.
Read More
- HBAR PREDICTION. HBAR cryptocurrency
- IMX PREDICTION. IMX cryptocurrency
- ZIG PREDICTION. ZIG cryptocurrency
- 15 Games Everyone Wants Sequels For
- LDO PREDICTION. LDO cryptocurrency
- EUR AED PREDICTION
- STEEM PREDICTION. STEEM cryptocurrency
- POL PREDICTION. POL cryptocurrency
- BDX PREDICTION. BDX cryptocurrency
- XDC PREDICTION. XDC cryptocurrency
2024-12-13 00:09