Starboard presses Riot Platforms to speed up AI data center push

Core Viewpoint - Activist investor Starboard Value is urging Riot Platforms to accelerate its AI data center initiatives, highlighting the company's potential to benefit from the increasing demand for artificial intelligence infrastructure [1]. Group 1: Company Positioning - Riot Platforms is positioned to leverage its substantial power capacity for AI computing as the profitability of bitcoin mining remains unstable [1]. - Starboard Value owns approximately 12.7 million shares of Riot and emphasizes that Riot's Texas sites, Corsicana and Rockdale, can provide about 1.7 gigawatts of power suitable for AI data center operations [1]. Group 2: Market Dynamics - The letter from Starboard indicates a trend among cryptocurrency miners to pivot towards AI and high-performance computing (HPC) as a response to the volatile nature of bitcoin mining profits [1]. - Starboard notes that AI and HPC companies are increasingly looking to cryptocurrency miners for immediate power capacity for their data centers [1]. Group 3: Strategic Recommendations - Starboard advises Riot to focus on securing high-quality, investment-grade tenants, such as hyperscalers, rather than merely pursuing the highest lease rates [1]. - The recent agreement between Riot and Advanced Micro Devices is viewed as a positive development, although it is characterized as a minor proof-of-concept deal [1].