D.E. Shaw’s exact stake in Riot remains undisclosed, but the hedge fund is known for its behind-the-scenes activist strategies. Last year, Starboard Value pushed Riot to consider using some of its energy capacity for artificial intelligence applications. In response, Riot initiated a formal review of AI and high-performance computing at its Texas facility.
Riot, valued at $3.8 billion, previously attempted to acquire rival miner Bitfarms, but the deal collapsed, leading to board changes instead. Meanwhile, D.E. Shaw, managing $70 billion in assets, has also engaged in activist efforts with Air Products and Chemicals alongside Mantle Ridge Capital.
With another activist investor involved, Riot may face pressure to optimize its operations or consider new revenue streams. While neither Riot nor D.E. Shaw have commented, investors will be watching closely for any shifts in strategy.