Starboard Value LP, a significant stockholder of Riot Platforms, Inc. (NASDAQ:RIOT), is urging the company to swiftly capitalize on its shift from bitcoin mining to the AI and high-performance computing (AI/HPC) data center market.
In a letter sent Wednesday, Starboard emphasized the growing potential of this transition, underscored by a recent deal with Advanced Micro Devices, Inc. (NASDAQ:AMD) that leverages Riot’s prime data center locations in Corsicana and Rockdale, Texas.
Starboard emphasizes the potential for significant revenue and EBITDA growth, urging Riot’s leadership to act quickly to secure its position in the growing AI/HPC sector.
“In such a dynamic and rapidly evolving AI/HPC demand environment, Riot must urgently seize this extraordinary opportunity,” Starboard Managing Member Peter Feld said in the letter.
Riot’s agreement with AMD, announced on January 16, 2026, involves an initial lease of 25 CIT MW, with potential for expansion to 200 CIT MW, generating $311 million in revenue over the next decade with an 80% EBITDA margin.
The Corsicana and Rockdale sites offer 1.7 GW of fully available power, positioning Riot as a strong contender in AI/HPC hosting. Starboard stresses the urgency for Riot to leverage these sites amid growing demand for AI/HPC services.
Riot’s transition also involves internal improvements, including new hires and the resolution of a lawsuit, freeing up capacity for development. These changes complement the company’s efforts to enhance governance and operational efficiency.
Riot’s prime data center locations provide a competitive edge, attracting top-tier tenants and positioning the company to generate over $1.6 billion in annual EBITDA from AI/HPC operations, boosting its financial outlook and equity value.
RIOT Price Action: Riot Platforms shares were up 8.16% at $15.84 at the time of publication on Wednesday, according to Benzinga Pro data.
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