The head of digital assets research at the global investment management firm VanEck is detailing why the publicly traded Bitcoin (BTC) miner Riot dumped a substantial amount of the flagship crypto asset.
Matthew Sigel says that Riot sold $200 million worth of Bitcoin in November. In comparison, the company did not sell BTC during the same period last year.
Riot offloaded Bitcoin holdings as it builds its Corsicana Facility for artificial intelligence (AI) in Navarro County, Texas.
“$RIOT sold ~$200M of Bitcoin in Nov/Dec vs. zero y/y.
That’s roughly the entire capex Riot has guided for the first 112 MW core/shell build at Corsicana, targeting completion in Q1 2027.
In other words: one winter of BTC sales? funding Phase 1 of the AI data-center pivot.”
Sigel says that most public miners like Riot have been selling Bitcoin to pay for AI pivot. Last month, he pointed out the relation between AI and the king coin.
“The AI trade and Bitcoin are linked.
Bitcoin miners are among the largest marginal sellers of BTC to fund their AI pivots. When credit conditions tighten, they need to sell even more to fund rising capex. Generally, BTC/Nasdaq correlation is elevated in recent months.”
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