The $70 billion D.E. Shaw, a hedge fund celebrated for its quantitative approaches, has acquired an interest in Bitcoin miner Riot Platforms, possibly causing some disruption.
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Although neither business is commenting, sources inform Reuters that D.E. Shaw may advocate for tactical modifications at the $3.8 billion Riot. This occurs after Starboard Value’s previous action to accumulate a share and propose that Riot utilize a portion of its power capability for artificial intelligence.
Riot is already examining artificial intelligence and high-performance computing at its Corsicana, Texas site. Riot attempted to purchase competitor Bitfarms last year but was unsuccessful, opting instead for board adjustments at Bitfarms.
While primarily a quantitative firm, D.E. Shaw is not hesitant to become activist, frequently operating in the background. They recently acquired a stake in Air Products and Chemicals, collaborating with Mantle Ridge Capital to advocate for leadership and capital distribution modifications.
As of publication, Riot’s stock is down about 1.2% today, trading at $10.98.
