Bit Digital, Inc. (BTBT) shares soared 5.15% in pre-market trading on Thursday, amid a broader rally in cryptocurrency and bitcoin mining stocks.
The surge in BTBT stock comes as activist investor Starboard Value has built a significant stake in Riot Platforms (RIOT), a major bitcoin mining company. Starboard is pushing Riot to convert some of its bitcoin mining facilities into capacity for hyperscalers, or large data center users, to capitalize on the growing demand for computing power and storage amid the artificial intelligence boom.
The news of Starboard's involvement in Riot has fueled speculation that other bitcoin mining companies like Bit Digital could also benefit from the increasing demand for data center resources and computing capacity. Investors are likely betting that Bit Digital may explore similar opportunities to leverage its bitcoin mining infrastructure for AI and cloud computing applications.
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