Isabella García
In a recent discussion with analysts from Bernstein, Jason Les, the CEO of bitcoin mining firm Riot Platforms, indicated the company’s openness to exploring AI opportunities. However, this would only happen under the right circumstances, such as the emergence of a strong partnership or favorable deal structure.
Les cited Core Scientific’s hosting agreement with AI firm CoreWeave, which is expected to generate $3.5 billion in revenue over a 12-year period, as a potential model. Despite this, Les expressed doubt that many similar deals would become available in the near future.
Riot’s massive facilities in Texas—such as its 750MW capacity site in Rockdale and the world’s largest 1GW bitcoin mining operation in Corsicana—are well-positioned to support both bitcoin mining and potential AI infrastructure. These sites are conveniently located near major urban centers like Austin and Dallas, giving them access to skilled labor and infrastructure, including low-cost energy and reliable network connectivity.
However, Les made it clear that Riot is not planning a significant shift to AI, stressing that the company will not chase AI trends without careful consideration. He acknowledged that AI-specific hardware, like GPUs, would be needed for such ventures, as the ASIC machines currently used for bitcoin mining are unsuitable for AI tasks.
“If a deal like Core Scientific’s came to us, we’d be interested, but we’re not pivoting just to follow market hype,” Les explained. He also highlighted the company’s valuable assets, noting that Riot has received inquiries from potential partners.
Riot Platforms Stays Committed to Bitcoin Mining
Riot Platforms remains dedicated to its core focus—bitcoin mining. Les emphasized the company’s efficient cost structure and strong market position, noting that new players like Jack Dorsey’s Block, Bitdeer, and Auradine are increasing competition in the mining hardware space, which benefits the industry by reducing reliance on dominant suppliers like Bitmain.
With bitcoin mining costs managed efficiently, Riot has been able to invest heavily in the next bitcoin market cycle. The company has locked in equipment purchases that could triple its mining capacity to 100 EH/s. Les affirmed that Riot plans to continue focusing on creating optionality and maximizing its power capacity for bitcoin mining.
Analyst Gautam Chhugani from Bernstein believes that Riot’s power assets are undervalued, currently trading at $800,000 per MW, compared to the industry average of $2.1 million per MW. Bernstein’s bitcoin price forecast of $200,000 by the end of 2025 could push Riot’s EBITDA (earnings before interest, taxes, depreciation, and amortization) to $1.1 billion, with the stock trading at an attractive valuation.
Bitcoin Miner Strategies Diverge
While Riot’s stock has risen by 17.3% in the past month, it remains down 54% year-to-date. It has underperformed compared to AI-diversifying miners like Core Scientific and TeraWulf. Les, however, argued that bitcoin mining’s quicker infrastructure and faster returns make it a more attractive investment, especially in a potential bull market.
Unlike some competitors that sell inventory, Riot holds around 10,000 BTC on its balance sheet, currently valued at approximately $630 million. Les stressed that Riot’s long-term belief in bitcoin’s potential is a core part of its strategy, positioning the company to benefit from future bitcoin scarcity.
Riot recently attempted a hostile takeover of rival Bitfarms but reached a settlement in September, preventing it from acquiring more than 20% of Bitfarms without board approval.
Riot Platforms remains focused on its core strength—bitcoin mining—while staying open to AI opportunities if they align with the company’s long-term strategy. With strong assets, competitive costs, and a long-term belief in bitcoin, Riot is positioning itself for significant growth in the coming years.
