To showcase its broad range of operations, Riot Blockchain has rebranded itself as Riot Platforms. However, the CEO of Riot Platforms Jason Les, said: “Riot’s rebranding underpins the company’s growth strategy to continue expanding its increasingly diversified business operations and reflects a renewal of its corporate vision to become the world’s leading Bitcoin-driven infrastructure platform.”
Despite its market capitalization plummeting by an astounding 85% over the past year, Riot remains the world’s most valuable publicly traded Bitcoin mining firm, trumping Marathon Digital Holdings in terms of valuation. Over the past few years, the company has taken advantage of several acquisitions that could enable a smoother transition into its desired diversified business model.
In December 2021, Riot acquired the Denver-based ESS Metron for an estimated $75 million. The engineering firm provides services to the power and water industries. Also, the purchase combined common stock worth approximately $50 million and cash valued at $25 million.
In May 2022, Riot also made an estimated $651 million purchase of Whinstone US, the owner, and operator of America’s largest Bitcoin mining and hosting facility.
The crypto mining sector still struggles
The Riot stock will remain accessible for trading on the NASDAQ exchange under its existing RIOT ticker symbol. However, this isn’t the first occasion that mining firms are shifting from blockchain promotion to other areas in their branding. In August 2022, Applied Blockchain (APLD) declared its rebranding to Applied Digital to deploy some of its computing power into other high-performance applications beyond mining.
With the continuing crypto winter and rising energy costs, it is no wonder that many Bitcoin mining companies are considering diversifying away from their core operations. Countless reputable names in the industry have already gone bankrupt or have started major restructuring efforts to prevent this fate. It appears that those who do not adjust will be left behind.
At the end of December 2022, Core Scientific – an industry leader in Bitcoin mining – filed for Chapter 11 bankruptcy protection in Texas.