{"id":19508,"date":"2024-12-13T14:10:12","date_gmt":"2024-12-13T12:10:12","guid":{"rendered":"https:\/\/forklog.com\/en\/riot-shares-surge-amid-potential-ai-pivot\/"},"modified":"2024-12-13T14:10:12","modified_gmt":"2024-12-13T12:10:12","slug":"riot-shares-surge-amid-potential-ai-pivot","status":"publish","type":"post","link":"https:\/\/forklog.com\/en\/riot-shares-surge-amid-potential-ai-pivot\/","title":{"rendered":"Riot Shares Surge Amid Potential AI Pivot"},"content":{"rendered":"

On December 12, Riot Platforms’ shares jumped nearly 5% following news of Starboard Value acquiring a stake in the bitcoin miner. Meanwhile, the S&P 500 index declined by 0.5%<\/a> that day.<\/p>\n

\"Riot-Platforms-Inc.-RIOT-Stock-Price-News-Quote-History-Yahoo-Finance-Google-Chrome\"
Data: Yahoo Finance<\/a>.<\/figcaption><\/figure>\n

On Thursday morning, The Wall Street Journal<\/a> reported that Starboard Value had acquired a “significant” stake in Riot.<\/p>\n

The buyer is a well-known activist investor. Such firms acquire minority stakes and begin to influence company management in search of ways to increase shareholder value.<\/p>\n

According to the publication, Starboard Value wants Riot to convert part of its mining capacity into hyperscalers<\/span>. Demand for large-scale universal data centers has risen amid the AI boom.<\/p>\n

\n

“Starboard would like Riot to follow the same path as bitcoin miner Core Scientific, which collaborates with Nvidia-backed startup CoreWeave, providing energy infrastructure for cloud computing operations,” a source familiar with the situation confirmed to journalists.<\/p>\n<\/blockquote>\n

Core expects to earn up to $3.5 billion<\/a> under a 12-year contract with an AI firm.<\/p>\n

In the third quarter, Riot reported<\/a> a net loss of $154.4 million. This figure was mainly due to depreciation charges, stock compensation expenses, and unrealized losses on marketable equity securities.<\/p>\n

Commercial, general, and administrative expenses for the quarter amounted to $66.9 million, $37.9 million more than the previous year.<\/p>\n

During this period, the company generated total revenue of $84.8 million, with $67.5 million coming from mining.<\/p>\n

Riot has lowered its year-end bitcoin hash rate forecast from 36.3 EH\/s to 34.9 EH\/s. For 2025, the expectation is now 46.7 EH\/s instead of the previously anticipated 56.6 EH\/s.<\/p>\n

Riot’s share price has fallen by 20.3% since the beginning of the year, with a market capitalization of $4.1 billion.<\/p>\n

Since May, the company has attempted a hostile takeover of rival Bitfarms, increasing its stake<\/a> in the bitcoin miner.<\/p>\n

In September, the parties reached a settlement without Riot gaining full control. Bitfarms’ shares have lost over 30%<\/a> since the beginning of the year, reducing the company’s market value to $0.97 billion.<\/p>\n

In April, CoinShares experts predicted that industry participants would compensate<\/a> for revenue losses following the halving<\/a> through AI expansion.<\/p>\n

However, in October, JPMorgan analysts noted that miners have about nine months to secure profitable deals in the sector.<\/p>\n","protected":false},"excerpt":{"rendered":"

On December 12, Riot Platforms’ shares jumped nearly 5% following news of Starboard Value acquiring a stake in the bitcoin miner. Meanwhile, the S&P 500 index declined by 0.5% that day. Data: Yahoo Finance. On Thursday morning, The Wall Street Journal reported that Starboard Value had acquired a “significant” stake in Riot. The buyer is […]<\/p>\n","protected":false},"author":1,"featured_media":19507,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"","news_style_id":"","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[1137,1186,1221],"class_list":["post-19508","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-cryptocurrency-mining","tag-riot-platforms","tag-stocks"],"aioseo_notices":[],"amp_enabled":true,"views":"53","promo_type":"","layout_type":"","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/19508","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/comments?post=19508"}],"version-history":[{"count":0,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/19508\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media\/19507"}],"wp:attachment":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media?parent=19508"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/categories?post=19508"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/tags?post=19508"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}