Riot Platforms Explores AI Opportunities While Staying Focused On Bitcoin Mining
By Benzinga
Riot Platforms Inc (NASDAQ:RIOT) CEO Jason Les expressed the company’s interest in artificial intelligence opportunities, contingent on the emergence of a favorable deal.
What Happened: In a recent interview with Bernstein analysts, Les highlighted Core Scientific‘s (NASDAQ:CORZ) collaboration with AI Hyperscaler CoreWeave as a potential model for such ventures, The Block reported.
Les stressed that while Riot is open to AI, its primary focus remains on bitcoin mining. He noted the strategic benefits of Riot’s Texas-based facilities, which boast significant power capacity and proximity to major urban centers like Austin and Dallas. These locations could accommodate AI-specific machines if a suitable partnership materializes.
Despite the interest in AI, Les made it clear that Riot is not planning a strategic pivot solely to capitalize on AI trends.
The company remains dedicated to bitcoin mining, especially as new competitors such as Jack Dorsey’s Block Inc (NYSE:SQ), Bitdeer (NASDAQ:BTDR) and Auradine intensify the sector’s competitiveness.
According to Bernstein, Riot’s stock has increased by 17.3% over the past month, although it is still down 54% year-to-date.
The firm holds approximately 10,000 BTC, valued at around $630 million, highlighting its commitment to Bitcoin’s long-term potential. Riot’s recent attempt to acquire rival Bitfarms (NASDAQ:BITF) concluded with a settlement that limits its acquisition capacity.
Why It Matters: Bernstein recently raised Riot Platforms’ price target to $22, maintaining an “Outperform” rating.
This optimistic outlook is based on Riot’s strategic focus on Bitcoin mining, extensive power capacity and positioning in the cryptocurrency market. Riot is currently constructing the world’s largest Bitcoin mining data center in Corsicana, Texas, with a planned 1-gigawatt power capacity.
The news comes as rival miner Core Scientific released its operations update for September, showing it mined 345 bitcoin, which brings its year-to-date total to 5,621.
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