Following Starboard’s public letter to Riot’s leadership, Riot’s stock rose in premarket trading as investors digested the activist push.

A wider trend shows crypto miners pivoting to AI/HPC as mining costs and difficulty rise, with peers pursuing or funding AI initiatives.

Riot has begun AI-related initiatives, including a data-center deal with AMD and a Bitcoin holding sale to fund expansion into AI/HPC, signaling a strategic shift.

Starboard views Riot’s governance improvements—new data-center experienced directors and a chief data center officer—as progress toward an infrastructure-led revenue model.

Riot’s Texas sites in Corsicana and Rockdale are highlighted for their low energy costs and favorable regulation, making them attractive to hyperscalers and other crypto miners.

Starboard Value is pressing Riot Platforms to accelerate its pivot from pure mining to AI data center deals, leveraging Riot’s 1.7 gigawatts of available power at Rockdale and Corsicana to attract AI and HPC tenants beyond crypto mining.

Analysts note a sector-wide shift as Bitcoin miners move away from mining toward AI/HPC due to waning mining profitability after the prior year’s halving, with Wall Street pricing in AI output.

Riot operates in two segments, Bitcoin Mining and Engineering, with Engineering covering power distribution equipment design, manufacturing, installation, and services for large-scale clients.

Starboard Value LP, a major Riot shareholder, delivered a public letter to Riot’s CEO and Executive Chairman with a copy to the board, urging strategic actions.

Riot’s business model remains centered on bitcoin mining, but a move to contracted data center revenue could reduce earnings volatility.

The shift toward AI hosting leverages Riot’s existing advantages—cheap power, land, and large facilities—amid a broader industry move to stable, high-margin AI data center operations.

Industry peers are signing significant AI deals, signaling Riot should escalate its pace to stay competitive in AI/HPC hosting.