Activist investor Starboard Value has identified a potential $21 billion opportunity for Riot Platforms through its expansion into artificial intelligence (AI) and high-performance computing. In a letter to Riot's leadership, Starboard emphasized the importance of leveraging Riot's substantial power capacity at its Texas campuses to capitalize on the growing demand for AI data centers. Riot's current market capitalization is significantly lower than the projected equity value from this expansion.
Riot has already initiated a partnership with Advanced Micro Devices (AMD), leasing 25 megawatts of IT load at its Rockdale site, with the possibility of scaling up to 200 MW. Despite these steps, Starboard urges Riot to accelerate its transition from a bitcoin miner to a leading AI data center operator, warning that competitors are moving swiftly to capture market share. Riot's available 1.4 gigawatts of power capacity is seen as a critical asset in this strategic shift.
Starboard Value Sees $21 Billion Potential in Riot Platforms' AI Expansion
Disclaimer: The content provided on Phemex News is for informational purposes only. We do not guarantee the quality, accuracy, or completeness of the information sourced from third-party articles. The content on this page does not constitute financial or investment advice. We strongly encourage you to conduct you own research and consult with a qualified financial advisor before making any investment decisions.
