Activist investor Starboard says Riot AI pivot could be worth up to $21 billion as miner lags peers

Activist investor Starboard Value said Riot Platforms’ (NASDAQ: RIOT) push into artificial intelligence and high-performance computing infrastructure could be worth as much as $21 billion, urging the bitcoin miner to accelerate dealmaking as its rivals move faster to reposition themselves as AI data center operators.

In a letter sent Wednesday to Riot CEO Jason Les, Executive Chairman Benjamin Yi and the company’s board, Starboard said Riot has begun a “meaningful transformation” over the past year but warned that execution must speed up to unlock the value of its power-rich data center sites.

“We believe Riot has a tremendous opportunity for value creation,” Starboard wrote, adding that the company’s Texas campuses could generate billions in earnings if fully monetized for AI and HPC workloads.

The investment firm estimates Riot’s AI/HPC business alone could ultimately create between $9 billion and $21 billion in equity value, a figure it said would "dwarf" the company’s current market capitalization.

Starboard credited Riot for launching its AI data center strategy last year and pointed to the miner’s agreement with Advanced Micro Devices as proof of concept, but described the deal as only a starting point.

Under the AMD agreement announced in January, the chipmaker will initially lease 25 megawatts of critical IT load capacity at Riot’s Rockdale facility, with options to expand to as much as 200 MW. Starboard said Riot still has roughly 1.4 gigawatts of additional capacity available to monetize.

Rivals pivoting to AI

Several bitcoin mining firms have already pivoted toward AI and HPC infrastructure, helping cushion their share prices during months of crypto market weakness that has seen bitcoin fall roughly 50% from its October all-time high.

Bitfarms recently completed what executives called its final step away from bitcoin mining by rebranding as infrastructure firm Keel Infrastructure and shifting its corporate domicile to the U.S. Hive Digital has also expanded its AI cloud operations, while CleanSpark and Cipher Mining are pursuing large U.S. data center expansions tied to AI demand.

Riot, meanwhile, continues to operate large bitcoin mining facilities while gradually converting portions of its power capacity toward AI tenants.

Starboard argued Riot’s Corsicana and Rockdale sites are among the most attractive in the U.S. because they already have access to large-scale power, which has become increasingly scarce for new data center projects.

Riot lagging peers

Starboard acknowledged Riot has improved governance and operational efficiency over the past year, including adding directors with data center experience, improving mining uptime, and reducing expenses.

Still, it said Riot must complete its transition to be valued more like data center operators, which command higher multiples due to asset quality and governance standards.

It also hinted that if execution proves difficult, Riot’s assets could attract interest from buyers, writing the company “could be an exciting candidate for consolidation.”

Shares of RIOT trade around $15.40 according to The Block's price data, up roughly 33% over the past year, lagging several mining peers highlighted in Starboard’s analysis, including TeraWulf, Hut 8, and Cipher Mining, which have posted gains exceeding 170% over the same period. Since early 2024, peer gains run into the multiple hundreds of percent, versus less than 100% for Riot shares.