Bitcoin Miner Riot Must Embrace $21 Billion AI Opportunity, Says Activist Investor
Activist investor Starboard Value says Riot Platforms, a publicly traded Bitcoin miner, could create substantial value by shifting focus to AI and high-performance computing (HPC) data centers. Starboard urges Riot to remove distractions, cut expenses, and complete governance and operational reforms to accelerate the transition. Riot has started this shift, signing a data center deal with AMD and selling $200 million in Bitcoin to fund expansion, but Starboard argues the company is moving too slowly compared to peers who have already secured billion-dollar AI/HPC deals. Starboard estimates Riot’s AI/HPC initiatives, especially at Corsicana and Rockdale sites, could raise Riot’s valuation by $9 to $21 billion, potentially lifting the share price as high as $53—over three times the current price. Riot’s stock rose nearly 6% after the letter, trading at $15.49, with a 25% gain over six months. Starboard stresses urgency to capitalize on the opportunity.
