Starboard Value Pushes Riot Platforms to Accelerate Bitcoin-to-AI Data Center Transition

Starboard Is Said to Urge Riot to Speed Up Shift to Data Centers

Starboard said that if Riot can monetize its power in line with recent transactions, it could generate more than $1.6 billion in annual earnings before interest, taxes, depreciation and amortization. Activist investor Starboard Value is asking Riot Platforms Inc. to speed up its transition from Bitcoin miner to a data center company that could house hyperscaler tenants, according to a letter reviewed by Bloomberg News. Starboard, which helped appoint directors to Riot's board last year, could make its views known as soon as Wednesday, the firm said in the letter, which was signed by Peter Feld, Starboard's managing member. Riot is among the largest public Bitcoin mining companies in the US, operating some of the world's largest mining sites in Texas. Shares of Riot have climbed 19% in the past year, giving the company a market value of about $6 billion. Starboard is Riot's fourth-largest shareholder as of the end of last year. Representatives for Riot and Starboard couldn't immediately be reached for comment. Starboard views Riot's two primary sites, Corsicana, outside of Dallas, and Rockdale, near Austin, as two of the most attractive US locations for high-performance computing and artificial intelligence data centers. Together, the sites comprise 1.7 gigawatts of fully available power, Starboard said. "In such a dynamic and rapidly evolving AI/High Performance Computing demand environment, Riot must urgently seize this extraordinary opportunity," Feld said in the letter. Riot is on a growing list of Bitcoin miners that are pivoting to high-performance compute services to meet the growing demand for power, driven by the exponential rise in AI. The pivot also comes as Bitcoin mining sees a plunge in revenue amid the crypto market crash that started in early October, and a surge in energy prices under recent extreme weather. Riot Chief Executive Officer Jason Les said last summer after second-quarter earnings that, given the attractive economics and higher valuation multiples associated with data center leasing, the company would convert much of its power portfolio to it. "The pace of transition from Bitcoin mining to data centers will be influenced by customer demand trends, the availability of financing and the general data center market," Les said. "Our current efforts are laying a strong foundation for a pipeline of future transactions." Riot competitors such as Cipher and Terawulf that have ventured into AI projects have attracted big name investors like SoftBank Group Corp. and Google to develop data centers. Such partnerships are bringing in billions of dollars in projected revenue and enabling the firms to raise even more capital from debt financing, Bloomberg News has previously reported. Starboard said that if Riot can monetize its power in line with recent transactions in the space, it could generate more than $1.6 billion in annual earnings before interest, taxes, depreciation and amortization. The activist said that it expects Riot to execute on its strategy but added that it could also be "an exciting candidate for consolidation and we would expect there to be significant interest in the company and its premier power assets."

Starboard presses Riot Platforms to speed up AI data center push

Feb 18 (Reuters) - Activist investor Starboard Value on Wednesday pressed Riot Platforms (RIOT.O), opens new tab to speed up AI data center deals, saying the bitcoin miner is well-positioned to capitalize on booming demand for artificial intelligence infrastructure. Shares of Riot rose about 5% in premarket trading. The push underscores a shift among crypto miners, which are looking to use their large power capacity for AI computing as bitcoin mining profits remain volatile and demand for AI data centers grows rapidly. In a letter to Riot CEO Jason Les and Executive Chairman Benjamin Yi, Starboard said AI and high-performance computing companies have increasingly turned to cryptocurrency miners as attractive sources of near-term power capacity for data centers. Riot's shares have underperformed peers that have secured sizable AI/HPC deals, according to the letter. "In such a dynamic and rapidly evolving AI/HPC demand environment, Riot must urgently seize this extraordinary opportunity," Starboard Managing Member Peter Feld said in the letter. Riot did not immediately respond to a request for comment. Starboard, which owns about 12.7 million shares of Riot, said the company's two main Texas sites, Corsicana and Rockdale, are well-positioned to capitalize on that demand. The facilities together offer about 1.7 gigawatts of available power suitable for AI data center use, the letter said. The company should focused on the high-quality, investment-grade tenants, including hyperscalers, rather than simply chasing the highest lease rates, the activist investor said. Starboard described Riot's recent agreement with Advanced Micro Devices (AMD.O), opens new tab as a "positive signal", but characterized it as a small proof-of-concept deal. The activist investor acknowledged steps Riot has taken to improve governance and operating efficiency, including appointing new directors with data center experience and hiring a chief data center officer. Reporting by Prakhar Srivastava in Bengaluru; Editing by Arun Koyyur Our Standards: The Thomson Reuters Trust Principles., opens new tab

Riot Platform's AI/HPC Push could Net up to $21B, Says Stockholder

An activist Riot Platform shareholder is pressing the crypto mining company to accelerate its pivot to high-performance computing (HPC) and artificial intelligence. In a Wednesday letter to executives, Starboard Value, which holds about 12.7 million shares of Riot, said that the company could generate between $9 billion to $21 billion in equity value contribution from AI/HPC data centers in Texas. The shareholder said that "time is of the essence," stressing urgency in getting "more material deals completed" as it moves deeper into AI and HPC. "With 1.4 [gigawatts] of gross capacity remaining to be monetized, Riot is in an enviable position - but it must execute with excellence and urgency," said Starboard. "We believe Riot should be able to attract high-quality tenants for tier-3 data centers with terms similar to or better than the peer transactions announced towards the end of 2025." Starboard referred to Riot's primary sites in Corsicana and Rockdale, Texas, where other crypto miners also operate due to low energy costs and friendly regulations. At Wednesday's Nasdaq market open, Riot's share price surged and were up by almost 6%, at the time of publication. Industry tracker CoinShares Bitcoin Mining ETF was down less than 1%, by comparison. Related: Moonwell hit by $1.78M exploit as AI vibe coding debate reaches DeFi "The recently announced transaction with Advanced Micro Devices [...] is a positive signal and confirms our views regarding the intrinsic value of Riot's key sites, but it is a small proof of concept deal, and we, like you, expect significantly more," said Starboard, referring to a data center lease and services agreement announced in January. Riot Platforms is not the only crypto company shifting some of its operations into AI and HPC amid increasing mining difficulty and other costs. CleanSpark, MARA Holdings, Core Scientific, Hut 8, and TeraWulf repurposed some of their infrastructure or announced similar plans in a move toward AI. Cango, another Bitcoin miner, sold $305 million worth of its BTC holdings last week in part to fund its planned expansion into AI and HPC.

Starboard Urges Riot To Seize AI Gold Rush Now - Riot Platforms (NASDAQ:RIOT)

Starboard Value LP, a significant stockholder of Riot Platforms, Inc. (NASDAQ:RIOT), is urging the company to swiftly capitalize on its shift from bitcoin mining to the AI and high-performance computing (AI/HPC) data center market. In a letter sent Wednesday, Starboard emphasized the growing potential of this transition, underscored by a recent deal with Advanced Micro Devices, Inc. (NASDAQ:AMD) that leverages Riot's prime data center locations in Corsicana and Rockdale, Texas. Starboard emphasizes the potential for significant revenue and EBITDA growth, urging Riot's leadership to act quickly to secure its position in the growing AI/HPC sector. "In such a dynamic and rapidly evolving AI/HPC demand environment, Riot must urgently seize this extraordinary opportunity," Starboard Managing Member Peter Feld said in the letter. Riot's agreement with AMD, announced on January 16, 2026, involves an initial lease of 25 CIT MW, with potential for expansion to 200 CIT MW, generating $311 million in revenue over the next decade with an 80% EBITDA margin. The Corsicana and Rockdale sites offer 1.7 GW of fully available power, positioning Riot as a strong contender in AI/HPC hosting. Starboard stresses the urgency for Riot to leverage these sites amid growing demand for AI/HPC services. Riot's transition also involves internal improvements, including new hires and the resolution of a lawsuit, freeing up capacity for development. These changes complement the company's efforts to enhance governance and operational efficiency. Riot's prime data center locations provide a competitive edge, attracting top-tier tenants and positioning the company to generate over $1.6 billion in annual EBITDA from AI/HPC operations, boosting its financial outlook and equity value. RIOT Price Action: Riot Platforms shares were up 8.16% at $15.84 at the time of publication on Wednesday, according to Benzinga Pro data. Photo via Shutterstock Market News and Data brought to you by Benzinga APIs To add Benzinga News as your preferred source on Google, click here.

Riot Faces Growing Pressure To Move From Bitcoin Mining to AI

* Riot's Bitcoin mining profits are declining sharply due to lower prices. * Activist investor Starboard urges Riot to accelerate its shift to AI data centers. * Many Bitcoin miners are pivoting to AI hosting for steadier, higher margins. Riot Platforms, one of the largest U.S. Bitcoin mining companies, is under growing pressure to pivot to Artificial Intelligence (AI). This trend has gained momentum amid declining mining profitability. The company owns large power sites in Texas that could be repurposed for AI computing instead of mining rigs. Activist Starboard Urges Faster Switch to AI Data Centers Riot's profits from Bitcoin mining have been declining, and a major investor is pushing the company to move faster into AI data centers. On Feb. 18, activist investor Starboard Value sent a letter to Riot. Starboard, Riot's fourth-largest shareholder at the end of 2025, wants the company to accelerate its shift away from pure Bitcoin mining. Starboard highlighted Riot's two large Texas sites -- Corsicana and Rockdale -- which together offer 1.7 gigawatts of power. The investor said these sites are ideal for AI and high-performance computing. If Riot leases power and space the way other companies have, it could earn over $1.6 billion in annual profit. Starboard emphasized that Riot must act quickly to seize this opportunity before competitors do. Riot CEO Jason Les said last summer that leasing data center space yields higher profits and can boost stock prices more than mining Bitcoin. The company has begun exploring AI applications and recently signed a deal with chipmaker AMD. Mining Profitability Declines Bitcoin prices dropped sharply in late 2025 and early 2026, reducing mining profitability. Riot's cost to mine one Bitcoin -- including all expenses -- has reached around $89,000. Meanwhile, Bitcoin trades between $60,000 and $70,000, leaving no room for profit. * In November 2025, Riot mined 428 Bitcoins, down 14% from the prior year. * In December, it mined 460 Bitcoins, still 11% lower than December 2024. * To raise cash, the company sold a record 1,818 Bitcoins in December for $161.6 million. Wall Street expects Riot to report a loss of $0.22 per share for Q4 2025. Mining profitability across the industry hit a 14-month low in January 2026 due to lower Bitcoin prices, higher power costs from winter storms, and tougher competition. Even with a strong Q3 2025 -- $180 million in revenue and $104 million in net income -- the recent Bitcoin slump has reversed gains. Industry-Wide Pivot: Many Mining Companies Turn to AI Riot is not alone. At least eight other publicly traded Bitcoin miners are shifting partially or fully to AI data centers. The reason is simple: AI customers pay steady, high rents with profit margins of 80% to 90%, while Bitcoin mining profits swing wildly with crypto prices. Key firms making the shift include: * Core Scientific: signed large AI hosting deals; stock soared. * IREN: deal with Microsoft for GPU cloud services worth up to $9.7 billion. * Cipher Mining: contract with Amazon Web Services. * TeraWulf, Bitfarms, CleanSpark, MARA Holdings, Hut 8, and Bit Digital: all launched AI hosting projects. Some, like Bitfarms, plan to cease Bitcoin mining entirely by 2027. Others are combining both businesses but expect AI to become the main revenue source. In 2025, these companies signed contracts totaling over $65 billion for AI and computing. By late 2026, mining may constitute less than 20% of revenue for those that pivoted. The move makes sense: miners already have cheap power, land, and buildings suited for heavy computing. With AI demand surging, this strategy transforms volatile mining sites into stable, high-value data centers. Riot now faces a clear choice: continue with shrinking mining profits or join the growing group betting on AI. Starboard's push may accelerate this decision in the coming weeks.