Activist Fund Starboard Urges Riot to Pivot to an AI Business

Activist investor Starboard Value has called on Bitcoin mining firm Riot Platforms to increase its artificial intelligence (AI) efforts. In a letter published on February 18, the firm said Riot needs to accelerate its high-performance computing (HPC) hosting strategy.

The renewed calls follow Bitcoin’s recent struggles, which have seen it fall 27% over the past 30 days. With miners now facing capitulation risks,  Starboard believes AI is a massive pivot opportunity.

AI Infrastructure Demand Boom is Ideal for Riot

According to Starboard, the recent increase in demand for AI infrastructure represents a massive opportunity for Riot.

An activist investor wrote to the CEO, Jason Les, and the Chairman, Benjamin Yi, of the crypto mining firm. In the letter, the investor highlighted rising interest from AI companies in partnering with or investing in mining operations.

It highlighted that four crypto mining companies announced AI/HPC deals in the last four months of 2025, indicating sustained interest.

With 1.7 gigawatts of energy capacity fully available at its Corsicana and Rockdale sites in Texas, Riot positions itself for massive scale. The firm sees this as an extraordinary opportunity to expand operations and leverage its infrastructure for future growth.

The letter came about a month after Riot signed a data center deal with AMD. That agreement is projected to generate $311 million over the next decade. While it praised the deal, Starboard said that Riot stands to make more by monetizing its capacity.

The firm estimates Riot could earn over $1.6 billion in annual EBITDA by monetizing its full 1.7 GW capacity. It believes conditions are clear for the company to make that move.

It said:

Meanwhile, the letter also highlighted improvements in Riot’s corporate governance and operational efficiency. The activist investors said that concerns about these issues influenced Riot’s struggles in the past, but insisted that the transformation must be completed.

Riot Shares Rise More Than 8% After Starboard Letter

Interestingly, the Starboard letter also served as a vote of confidence in Riot’s strategy. This caused the Bitcoin miner to gain over 8% on a day Bitcoin fell to $65,000. The stock is now up 22% year to date, even as it remains substantially below its peak price.

According to an activist investor, fully pivoting into AI could add between $9 billion and $21 billion in equity value to Riot. This would mean that its share price is around $23 to $53 per share, far above the current $15.54.

The positive sentiment is not surprising given RIOT’s underperformance relative to competitors such as Cipher Mining, Hut 8, and IREN. All these companies have already adopted an AI/HPC strategy, which is a major driver of their growth.

With Riot now positioning to join them, Starboard emphasized the need to move fast and take advantage of the current environment.