Riot pauses Bitcoin expansion, turns to artificial intelligence

Crypto miner listed Riot pads He shifts his focus away from Bitcoin to Amnesty International Trying to maximize its unused power.

in advertisementRiot revealed that it is exploring the possibility of using approximately 600 megawatts (MW) of unused power capacity for AI and high-performance computing (HPC) applications.

Riot has subsequently paused the second phase of its Bitcoin mining expansion at its Corsicana site, which was originally expected to add another 600 megawatts of mining capacity.

The move fits into the company’s broader strategy to expand its operations beyond Bitcoin mining and tap into the growing AI/HPC sector, which it believes can boost cash flows.

“While we continue to believe in the significant upside of our Bitcoin mining operations, we have recognized for some time the value of obtaining long-term, predictable cash flows from a well-capitalized AI/HPC counterparty,” Benjamin Yee, CEO of Riot explained.

“We look forward to providing further updates to our shareholders and the broader market as we and our advisors make progress toward this goal.”

Riot has managed to maintain its dividend over the past 12 months, posting revenue growth of 19.4%, despite its relatively volatile stock price.

As part of this strategic pivot, Riot has revised its 2025 self-mining hashrate capacity target, lowering it from 46.7 EH/s to 38.4 EH/s, and updated its financial projections to anticipate a $245 million reduction in capital expenditures for the Corsicana facility.

Existing mining operations in Corsicana, as well as at the company’s facilities in Rockdale, Kentucky, will continue as planned, maintaining Riot’s operational footprint in Bitcoin mining.

Riot also recorded a 4% increase in Bitcoin production for December 2024, but recorded a 17% decline year over year. The company’s Bitcoin holdings rose to 17,722 by the end of December, an increase of 141% compared to the previous year.

The company also raised $594.4 million from a convertible securities offering, and has plans to raise an additional $500 million for further Bitcoin acquisitions and other corporate purposes.

“Our focus has always been on maximizing the potential of our assets and ensuring that any agreement we enter into with an AI/HPC counterparty will be the result of an informed and inclusive process that puts the best interests of all our stakeholders first.” Jason Lees, CEO of Riot.

“That’s why we’re taking the actions announced today. While any conversion of our existing Bitcoin mining facilities to AI/HPC presents significant challenges and time investments, we believe there is significant opportunity to maximize the value of the 600 MW of renewable energy. Remaining capacity available At the Corsicana facility and providing significant benefit to our shareholders, we are excited to take these next steps and look forward to accelerating our operation.