Riot Platforms, a prominent bitcoin mining company, led by CEO Jason Les, has expressed openness to exploring AI opportunities if a suitable partnership and deal structure present themselves. Les highlighted the hosting agreement between Core Scientific and AI Hyperscaler CoreWeave as a promising example, expected to generate over $3.5 billion in revenue over 12 years.
In a recent interview with Bernstein analysts, Les pointed out the strategic advantages of Riot's Texas-based facilities, including a 750MW capacity site in Rockdale and the world’s largest 1GW bitcoin mining operation in Corsicana. These locations are within close proximity to urban centers like Austin and Dallas, offering access to talent and essential infrastructure.
Despite the interest in AI, Les emphasized that Riot is not pivoting from its core bitcoin mining business. He stated, "We are not announcing a pivot just for the sake of it right now," highlighting that any AI strategies would involve adapting facilities to incorporate AI-specific machinery.
Riot remains committed to its bitcoin mining roots, having recently invested in new equipment at locked-in prices of up to 100 EH/s, allowing the company to triple its current mining capacity. Les noted that the entry of new players into the bitcoin mining hardware market has improved economics by reducing reliance on dominant suppliers like Bitmain.
Analyst Gautam Chhugani from Bernstein believes Riot is currently undervalued based on its power assets. At Bernstein’s forecast of a bitcoin price reaching $200,000 by the end of 2025, Riot’s EBITDA could potentially rise to $1.1 billion, suggesting a strong upside for investors.
With a stock increase of 17.3% in the past month, Riot is navigating a competitive landscape while holding approximately 10,000 BTC on its balance sheet. As the mining industry evolves, Riot is positioning itself to capitalize on both bitcoin and potential AI opportunities.
