On Wednesday, bitcoin mining company Riot Platforms said it is exploring partnerships in the artificial intelligence and high-performance computing sector as it aims to shore up its business and generate sustainable revenue streams. The NASDAQ-listed company said it would ramp up evaluations for potential AI and high-performance computing (HPC) uses at its Corsicana Facility in Navarro County, Texas, citing increased interest from multiple potential partners.
Riot’s exploration of AI computing capabilities reflects a growing trend among Bitcoin miners to leverage their substantial power infrastructure and data center expertise for additional revenue opportunities beyond crypto mining.
The move comes as mining difficulty on the Bitcoin network has reached a historic high, peaking at 114.7 terahashes when it arrived at block height 883,502 on February 10, data from CoinWarz shows. Meanwhile, revenue from Bitcoin mining hardware has significantly dropped over the year, to as low as $10.4 a day over an operating margin of 60% for an average ASIC unit like the Antminer S21+ Hydro, according to data from Hashrate Index.
Alongside its AI explorations, Riot appointed three new directors with relevant expertise: Hut 8 Mining CEO Jaime Leverton, former Meta senior engineer Doug Mouton, and real estate investment veteran Michael Turner. Moving in to explore AI and high-performance computing is part of Riot’s initiatives to “maximize value” for its “entire portfolio of assets,” Riot CEO Jason Les said in a statement.
Similar strategic shifts by other major crypto mining operators are at play. Leverton, who just joined Riot’s board, previously led her company’s expansion into HPC by acquiring TeraGo’s data center business. Companies such as Hut 8 and Core Scientific are repurposing their infrastructure for AI workloads, leveraging existing power access and data centers.
These diversification moves are also aimed at reducing dependence on Bitcoin’s price fluctuations while capitalizing on the growing demand for AI computing resources. However, the company cautioned there’s no guarantee its assets are suitable for AI/HPC conversion or that partnerships can be negotiated on favorable terms.
Still, Bitcoin mining and other public crypto firms are beating the market, with their overall market cap expanding by 14% to bring their valuations to $108 billion, according to JPMorgan. Riot also operates Bitcoin mining facilities in Rockdale, Texas, and Kentucky, along with electrical switchgear engineering operations in Colorado. The company’s stock, which trades on the NASDAQ under the ticker RIOT, is up 0.2% on the day to $11.16, Google Finance data shows.
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