• D.E. Shaw’s stake in Riot hints at behind-the-scenes activism as mining firms eye AI and high-performance computing shifts.
• DCG’s spinout of Fortitude Mining signals a push for institutional crypto-mining growth amid Foundry’s strategic restructuring.
• Riot Platforms explores AI-driven revenue, reflecting a broader industry trend of diversifying beyond traditional Bitcoin mining.

D.E. Shaw has secured a position in Riot Platforms (RIOT.O), signaling potential strategic changes. Meanwhile, to increase institutional exposure, Digital Currency Group (DCG) split off Fortitude Mining, its mining division. These actions demonstrate how the dynamics of crypto mining are changing as high-performance computing and artificial intelligence become more prevalent.

D.E. Shaw Expands Influence in Riot Platforms

D.E. Shaw, a $70 billion asset manager, has taken a stake in Riot Platforms. The firm's involvement suggests possible activist pressure for operational shifts. This follows Starboard Value's investment in Riot, which led to discussions about repurposing power capacity for artificial intelligence applications.

Last week, Riot announced a formal evaluation of AI and high-performance computing uses at its Corsicana, Texas facility. This shift aligns with a broader industry trend where mining firms seek diversified revenue streams. Riot’s stock has risen 5% since January, reflecting investor optimism about its future direction.

Besides, D.E. Shaw’s history of behind-the-scenes activism suggests Riot might experience further board-level changes. However, unlike traditional activist investors, the firm prefers discreet negotiations over public disputes.

DCG Spins Off Fortitude Mining for Institutional Growth

On another front, DCG has officially separated Fortitude Mining from its Foundry Mining subsidiary. This move aims to create a dedicated institutional mining entity. According to a Jan. 29 announcement, Andrea Childs, a Foundry executive since 2020, now leads Fortitude Mining. However, DCG has not disclosed the financial specifics of the spinout.

Moreover, Foundry recently laid off 16% of its U.S. workforce to sharpen its focus on core Bitcoin mining operations. The restructuring reflects the company’s strategy to streamline its business and strengthen efficiency.

Foundry currently controls over 30% of Bitcoin’s global hashrate, solidifying its position as a dominant mining player. Hence, Fortitude Mining is expected to leverage this network strength to attract institutional investors seeking diversified crypto exposure.