Riot Options Volume Jumps as Stock Rallies 10% After Starboard Reportedly Takes Stake
$Riot Platforms (RIOT.US)$ options volume jumped as the stock rallied more than 10% after the Wall Street Journal reported that activist investor Starboard Value has built a significant position in the company and is pushing for changes in the bitcoin mining operator.
Shares jumped as much as 12.8% to $13.28 Thursday morning, likely helping fuel demand for call options. The most active of them are call options that give the holders the right to buy the stock at $13 by tomorrow. More than 27,000 of those calls changed hands as of 12:26 p.m. as the stock traded just above that strike price.
According to the WSJ report, Starboard is in talks with Riot to convince the company's leadership to convert its its bitcoin-mining facilities for use of hyper-scalers, the tech giants that operate large-scale data centers designed to massive amounts of computing power and storage. Those companies include $Amazon (AMZN.US)$ Web Services and $Alphabet-A (GOOGL.US)$'s Google Cloud that have grown even more popular amid the artificial intelligence boom.
Volume for all Riot call and put options across 13 expiration dates that stretch through Jan. 15, 2027 reached more than 365,000 so far, landing the bitcoin miner in seventh place for the most active stock options behind $NVIDIA (NVDA.US)$, $Tesla (TSLA.US)$, $Palantir (PLTR.US)$, $Apple (AAPL.US)$, $Microsoft (MSFT.US)$ AND $Advanced Micro Devices (AMD.US)$. (For the options ranking, click here.)
More than three-quarters of those Riot contracts were in call options. The total exceeds the previous session's volume by more than 30% and compares with the 20-day average of 195,196, according to data compiled by Bloomberg.
Starboard is proposing that Riot take the same route as rival $Core Scientific (CORZ.US)$, which has been working with $NVIDIA (NVDA.US)$-backed CoreWeave to supply power infrastructure for the cloud-computing company's operations, WSJ reported, citing people familiar with the matter.
The shift may help boost Riot's investment appeal after the stock saw a 16% slump this year at a time when $BTC/USD (BTCUSD.CC)$ has surged 142%. By comparison, Core Scientific surged more than 365% over that period.
Share your thoughts on Riot Platforms, bitcoin and other crypto stocks in the comments section. Do you think the rally in Riot shares could continue? Let your voice be heard and vote below.
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Luzi Ann Santos
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Former editor at Bloomberg, ex-commentary editor at Lazard. Posts aren’t investment advice. Views are just mine.
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Tony Tham105745839 :
James 101542649 : good
sundsvallson : btc mining company to shift from mining btc to cloud storage. people pile in.... interesting.
54088 FROM RWS : wow
Thalapeter : good job
Tony mass timber : the capital and high uptime reliability of 99.9% up time will bankrupt bitcoin miners entering this space.
Tony mass timber : Enjoy the ride while it lasts. The vulture venture investor is secure and can the bitcoin
once it doesn't go his way and get out.