"Riot(Miner)" Bitcoin Selling Activity "Appears fundamentally different from the BTC selling seen during the 2022 bear market cycle caused by mining profitability pressure (yellow box)." 1. Riot once held approximately 18,000 BTC, and since February 2025, the company has sold around 13,000 BTC. In other words, Riot has liquidated more than 80% of its holdings over roughly a one-year period. However, this selling activity appears materially different from the survival-driven BTC selling that occurred during previous bear market conditions caused by financial distress or collapsing mining profitability. 2. Riot is now clearly positioning itself beyond being a pure Bitcoin mining company, moving toward becoming an AI-driven digital infrastructure and data center operator. This does not mean Riot is abandoning the Bitcoin mining business itself, but it does suggest the company is no longer relying solely on mining as its primary long-term growth strategy. In Riot’s official earnings release, the company stated: “During the quarter, we funded this CapEx through a disciplined sale of a portion of our Bitcoin holdings, the most capital-efficient source of funding currently available to us." “Importantly, we did not issue any common equity during the quarter. Instead, we leveraged our Bitcoin treasury and our operating cash flows to fund this development." 3. There are two key points here. First, Riot is actively selling a large portion of its BTC holdings in order to invest into its “digital infrastructure/data center” business. This provides a clear indication of where the company currently sees the highest growth potential and strategic priority. In other words, Riot appears to believe that expanding its AI and data center infrastructure offers a higher long-term return profile than simply continuing to accumulate BTC indefinitely. 4. The second important point is that Riot explicitly stated it funded these developments without issuing additional common equity. This means the company was able to finance expansion through operating cash flow and its Bitcoin treasury alone, without diluting shareholders. As a result, it becomes difficult to interpret Riot BTC selling as a forced reaction to financial distress caused by falling Bitcoin prices. If anything, this suggests that current price levels are not posing a critical threat to the company’s operational stability. In other words, Riot appears financially capable of withstanding further downside volatility in Bitcoin prices to a certain degree. Additionally, based on ForeDex data, Riot current “Operational Floor Cost” is approximately $43,000 per BTC. This indicates that Bitcoin current market price still remains significantly above Riot’s operational break-even structure. 5. Ultimately, one of the biggest structural problems facing Bitcoin mining companies today is the difficulty of maintaining stable business operations amid extreme Bitcoin price volatility. To address this issue, many major U.S. mining companies are rapidly expanding into AI-focused digital infrastructure and data center businesses. Bitcoin market structure itself has also evolved significantly following ETF approval, and the rapid growth of the AI industry is accelerating these changes even further. Rather than simply interpreting raw data at face value, understanding the underlying reasons behind these developments may lead to a very different interpretation of the market. @ForeDex_Global(mignolet)