Activist Starboard Pushes Riot to Unlock up to $21B from AI/HPC Data Centers
Starboard Value, an activist investor holding ~12.7 million Riot Platforms shares, has urged Riot to accelerate its pivot from Bitcoin mining into AI and high‑performance computing (AI/HPC). Starboard estimates Riot could unlock $9 billion–$21 billion of incremental equity value by monetizing about 1.4 GW of remaining gross capacity across primary Corsicana and Rockdale sites, implying a per‑share valuation roughly $23–$53 versus a recent close near $15.49. The letter calls for faster execution, streamlined governance, cost cuts and pursuit of larger, “material” AI deals similar to peers that have signed multibillion‑dollar agreements. Riot has taken preliminary steps — a lease and services agreement with AMD and roughly $200 million of Bitcoin sales to fund data‑center expansion — but Starboard says progress is too slow. The news drove Riot shares about 6% higher on the day. For traders: the move signals a strategic de‑risking of pure Bitcoin‑mining exposure toward an AI/HPC real‑estate play, potential dilution or capital raises to scale data‑center builds, and an increased correlation between Riot’s equity and the AI data‑center market rather than BTC price alone. Primary keywords: Riot Platforms, AI data centers, Bitcoin miner, Starboard Value, AI/HPC; secondary keywords: AMD deal, equity value, Corsicana, Rockdale.
Bullish
The news is bullish for Riot Platforms equity in the near to medium term. Starboard’s push to monetize 1.4 GW of existing capacity into AI/HPC data centers reframes Riot from a pure BTC miner into a hybrid infrastructure play with potentially higher enterprise valuation multiples. The market’s immediate ~6% share jump shows investors view the strategy shift positively. Short-term drivers: optimism around large AI deals (AMD proof‑of‑concept), reduced pure-BTC exposure via $200M BTC sale, and the possibility of takeover or re-rating if Starboard’s execution demands materialize. Risks that could limit upside: slow execution, need for capital raises or partnerships (potential dilution), competition from miners and hyperscalers, and a longer timeline to sign large AI customers. Long-term, successful conversion of capacity to AI/HPC would likely increase revenue diversification and justify higher multiples, but failure or protracted execution could revert gains. For crypto traders focused on BTC exposure, Riot’s equity becoming more tied to AI data‑center fundamentals reduces its sensitivity to short-term BTC price swings and may lower correlation with BTC — a structural change that can be positive for equity value but neutral-to-negative for traders seeking pure BTC leverage.