Activist investor Starboard Value has publicly urged Bitcoin miner Riot Platforms to accelerate its pivot into artificial intelligence and high-performance computing (AI/HPC) infrastructure, arguing that the company’s massive power capacity in Texas represents a multibillion-dollar opportunity if executed quickly.
In a letter addressed to CEO Jason Les, Executive Chairman Benjamin Yi, and the board, Starboard estimated that Riot’s AI/HPC business could generate between $9 billion and $21 billion in equity value — a figure that would dwarf Riot’s current market capitalization. The core of the argument centers on power. Riot’s campuses in Rockdale and Corsicana control large-scale energy capacity, a scarce commodity as AI data center demand surges across the United States.
The AMD Deal as a Proof of Concept
In January 2026, Riot signed an agreement with Advanced Micro Devices (AMD) under which AMD will initially lease 25 megawatts of IT load at Riot’s Rockdale facility, with options to scale up to 200 MW. Starboard views this deal as a proof of concept, but stresses that Riot still has approximately 1.4 gigawatts of available power capacity that could be monetized for AI or high-performance computing workloads.
Competitors Are Moving Faster
While Riot has begun converting parts of its mining footprint toward AI tenants, its peers have moved more aggressively. Bitfarms has rebranded as Keel Infrastructure and shifted its domicile to the United States. Hive Digital, CleanSpark, and Cipher Mining are all expanding their AI-linked data center operations. Starboard warned that without faster deal execution, Riot risks being valued as a mining company rather than a data center operator, which typically commands higher valuation multiples.
Governance Improvements and Remaining Risks
Starboard acknowledged that Riot has made improvements in governance and cost efficiency over the past year, including adding board members with data center experience. However, the fund cautioned that if Riot fails to execute quickly on AI opportunities, its valuable power assets could make it a prime target for consolidation in the U.S. data center market. Part of the letter stated: “As Riot executes massively value-accretive AI/HPC deals, it must ensure that it completes the transition into a best-in-class data center lessor. We believe Riot is on its way to a transformation from a bitcoin miner to a best-in-class AI/HPC data center company.”
Institutional Interest in Bitcoin Miners
During the first nine months of 2025, institutions increased their positions in several Bitcoin mining stocks, with IREN, APLD, CIFR, and RIOT leading the gains. This trend highlights growing mainstream interest in miners that are pivoting toward AI and data center services. For Riot, the message is clear: the market sees optionality in its power-rich footprint. The question is whether management can convert that potential into contracts before competitors lock up the demand.
Starboard’s public pressure may accelerate Riot’s transformation timeline. The company now faces a strategic crossroads: move decisively into AI infrastructure and unlock billions in value, or risk being left behind as a pure-play Bitcoin miner in a rapidly evolving data center landscape.