Riot Platforms: From Bitcoin to AI-The Epic Quest for Data Domination!

by

In a letter penned with all the urgency of a caffeinated squirrel on February 18, the highly astute activist investor Starboard Value LP has decided it’s time for Riot Platforms to dramatically pivot. And by “pivot,” they mean leap from the cozy world of bitcoin mining into the glittering realm of artificial intelligence-a land where machines dream of electric sheep and data flows like fine wine at a banquet.

  • Starboard Value, with the confidence of someone who’s just found out their favorite snack is on sale, released a high-stakes missive urging Riot Platforms to seize a colossal $21 billion golden opportunity in artificial intelligence. Because why not?
  • The recent AMD deal, they say, is about as substantial as a paper umbrella in a hurricane; it’s merely “proof of concept.” The activists are clamoring for some serious tenants, preferably those with an investment-grade sheen, to close the yawning chasm between Riot’s valuation and that of its peers-who seem to be throwing money around like confetti.
  • In a rather ominous tone, the shareholder cautioned that if Riot doesn’t get its act together pronto, its rare power assets might just make it a juicy target for tech giants looking to feast.

Starboard: Riot Platforms Sitting on a Multi-Billion Dollar AI Payday!

“We believe Riot is on its way to a transformation from a bitcoin miner to a best-in-class AI/HPC data center company,” Starboard proclaimed, probably while gazing into a crystal ball filled with binary code.

While showering praise on recent governance improvements-because everyone loves a good pat on the back-Starboard added a touch of urgency, warning that “time is of the essence.” After all, nobody likes to be the slowest tortoise in a race full of hares.

Starboard gleefully highlighted Riot Platform’s “massive” potential, cleverly centered on its 1.7GW of available power across two flagship sites in Corsicana and Rockdale, Texas. As the AI industry struggles against notorious power constraints and tedious grid interconnection delays, Starboard insists that Riot’s already energized locations stand out like a neon sign in a black-and-white movie.

The investor pointed to Riot’s January 2026 deal with Advanced Micro Devices (AMD) as a “positive signal”-not to be confused with a traffic signal, which has been known to cause confusion. Under this thrilling agreement, AMD has committed to a mere 25MW, which is expected to generate a staggering $311 million in revenue over ten years, with an 80% EBITDA margin. Not too shabby for a bit of silicon!

Starboard’s analysis, which one can only assume was conducted while wearing very serious glasses, suggests Riot is significantly undervalued. If Riot manages to monetize its remaining 1.4GW of capacity as per the recent industry transactions, it could potentially generate over $1.6 billion in annual EBITDA. Using valuation multiples of 12.5x to 20x, Starboard estimates that the AI/HPC business could contribute between $9 billion and $21 billion in equity value-implying a delightful share price of anywhere from $23 to $53. Grab your calculators, folks!

Despite these tantalizing prospects, Starboard Managing Member Peter Feld noted that Riot’s stock has lagged behind its peers who have been signing larger AI deals with the enthusiasm of a kid in a candy store. The letter urged Riot to focus on securing “highest-quality” investment-grade tenants and warned that if management doesn’t act swiftly, it might want to consider itself a candidate for consolidation-because there’s nothing quite like a little corporate merging to spice things up.

“Riot is now positioned to focus on executing its AI/HPC strategy,” Feld wrote with the kind of optimism usually reserved for people who’ve just discovered coffee, “but it must execute with excellence and urgency.” And who wouldn’t want to be on that rollercoaster?

Read More

2026-02-19 09:31