Riot Platforms Eyes AI Integration While Prioritizing Bitcoin Mining with Largest Facility Under Construction in Texas

Riot Platforms is diving into artificial intelligence while keeping its main focus on bitcoin mining. The company sees potential partnerships, similar to what Core Scientific is doing with AI Hyperscaler CoreWeave. Plus, they’re building the largest Bitcoin mining center in the world right in Texas.

In a recent chat with Bernstein analysts, CEO Jason Les talked about Riot's interest in AI. He mentioned that any move into AI would depend on finding the right deal. However, he made it clear that bitcoin mining is still the top priority for Riot.

Les highlighted the advantages of their Texas facilities. These sites have a lot of power capacity and are close to major cities like Austin and Dallas. This makes them ideal for integrating AI-specific machines if a good partnership comes along.

Even with this interest in AI, Les emphasized that Riot won’t shift its strategy just to chase AI trends. The company is committed to bitcoin mining, especially as new competitors like Jack Dorsey's Block Inc, Bitdeer, and Auradine enter the market.

According to Bernstein, Riot's stock has jumped 17.3% over the past month. However, it’s still down 54% for the year. Riot holds about 10,000 BTC, valued around $630 million, showing a strong commitment to Bitcoin's future. Recently, Riot's attempt to acquire Bitfarms ended with a settlement that limits its acquisition options.

Bernstein has raised Riot Platforms’ price target to $22, maintaining an "Outperform" rating. This positive outlook comes from Riot’s strong focus on bitcoin mining, its significant power capacity, and its position in the cryptocurrency market. Right now, they’re constructing the largest Bitcoin mining data center in Corsicana, Texas, with a planned power capacity of 1 gigawatt.

This news follows Core Scientific’s September operations update, which revealed that they mined 345 bitcoin, bringing their total for the year to 5,621.