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Investing.com -- Shares of Riot Platforms (NASDAQ: NASDAQ:RIOT) jumped more than 3% Wednesday after a report from Reuters said investment firm D.E. Shaw has taken a stake in the cryptocurrency mining company, making it the second activist investor to do so.
While the size of D.E. Shaw’s position remains undisclosed, Reuters said its sources indicated the firm may push for strategic changes at Riot.
The hedge fund, which manages $70 billion in assets, is known for employing quantitative investment strategies but occasionally engages in activist campaigns, typically behind closed doors.
The news follows a similar move by Starboard Value, which took a stake in Riot late last year and urged the company to explore allocating some of its power capacity toward artificial intelligence.
In response, Riot recently announced a formal review of AI and high-performance computing opportunities at its Corsicana, Texas, facility.
Riot, valued at approximately $3.8 billion, has been active in expanding its footprint within the crypto space. Last year, the company attempted a takeover of rival Bitfarms but ultimately settled for boardroom changes instead of a full acquisition.
The broader cryptocurrency sector has seen renewed investor optimism, partly driven by expectations that the Trump administration could implement more favorable regulations for digital assets.
D.E. Shaw’s involvement signals potential further strategic shifts at Riot, though the hedge fund has not commented publicly on its intentions.