Activist investor Starboard Value LP sent a high-stakes letter to Bitcoin miner Riot Platforms on February 18, urging an immediate transition from cryptocurrency mining to an artificial intelligence and high-performance computing (AI/HPC) data center provider. The letter warns that the company is sitting on a massive opportunity worth up to $21 billion.
1.7GW Power Assets as the Core Lever
Starboard highlighted Riot's 1.7GW of available power across two flagship sites in Corsicana and Rockdale, Texas. With the AI industry facing severe power constraints and multi-year grid interconnection delays, these ready-to-use power sites are among the most attractive in the U.S. Starboard estimates that if Riot monetizes its remaining 1.4GW capacity in line with recent industry transactions, it could generate over $1.6 billion in annual EBITDA. Using valuation multiples of 12.5x to 20x, the AI/HPC business alone could contribute between $9 billion and $21 billion in equity value, implying a share price of $23 to $53.
AMD Deal Seen as Proof of Concept, Bigger Tenants Needed
The letter referenced Riot's January 2026 agreement with Advanced Micro Devices (AMD), a 25MW deal expected to generate $311 million in revenue over 10 years with an 80% EBITDA margin. Starboard called it a "positive signal" but only a "proof of concept." The activist demands that Riot secure larger, investment-grade tenants to close the valuation gap with peers who have signed bigger AI deals earlier.
"Time Is of the Essence": Acquisition Target if No Action
Starboard Managing Member Peter Feld wrote, "Riot is now positioned to focus on executing its AI/HPC strategy, but it must execute with excellence and urgency." He warned that if management cannot execute quickly, Riot's scarce power assets make it a prime acquisition target for tech giants. While praising recent governance improvements, Starboard noted that Riot's stock has materially lagged behind peers. As of writing, Riot shares trade around $12, well below Starboard's minimum target of $23.