tl;dr
Investment firm D.E. Shaw has acquired a stake in Bitcoin miner Riot Platforms, indicating potential changes for the company. D.E. Shaw, known for strategic investments, may influence Riot's business approach. This follows activist investor Starboard Value's stake in Riot, with both investors likely...
Investment firm D.E. Shaw has acquired a stake in Bitcoin miner Riot Platforms, indicating potential changes for the company. D.E. Shaw, known for strategic investments, may influence Riot's business approach. This follows activist investor Starboard Value's stake in Riot, with both investors likely pressuring the company to enhance shareholder value and consider new opportunities. Riot's expansion in Bitcoin mining has garnered interest, with the company owning a significant amount of BTC and making an unsuccessful bid to acquire Bitfarms.
Although the exact size of D.E. Shaw’s position has not been disclosed, the firm’s involvement signals potential changes on the horizon for the company.
D.E. Shaw, which manages $70 billion in assets, is known for its strategic investments. According to a Reuters report, the firm could push Riot to adopt new approaches or restructure certain aspects of its business. D.E. Shaw is not an activist investor but leverages activism as a tool when the situation warrants it.
This move comes shortly after activist investor Starboard Value took a significant stake in Riot in December. Starboard, known for seeking to influence the companies it invests in, is likely to pursue changes aimed at improving profitability or corporate strategy. The Wall Street Journal reported that Starboard wants Riot to convert some of its bitcoin-mining facilities into space for big data center users. The combination of D.E. Shaw and Starboard’s involvement suggests that Riot may face increased pressure to enhance shareholder value, streamline operations, or consider new business opportunities.
As of the end of 2024, Riot Platforms said it owned 17,722 BTC, a 141% increase from December 2023. Riot also mined 516 BTC in December, exceeding November’s output. Separately, the latest development comes as Riot made an unsolicited offer of $950 million in May 2024 to acquire Canadian Bitcoin miner Bitfarms. On June 20, Bitfarms implemented a shareholder rights plan, commonly known as a “poison pill,” to prevent a hostile takeover. Riot Platforms and Bitfarms then finalized a settlement, ending the acquisition bid.