Starboard Value is shaking things up at Riot Platforms (RIOT, Financial). The activist investor, known for stirring the pot in the tech world, has taken a significant stake in the Colorado-based bitcoin miner and wants Riot to dive headfirst into AI. The idea? Repurpose some of Riot's energy-guzzling bitcoin-mining facilities into hyperscale data centers to support AI powerhouses like Amazon and Google Cloud. With AI demand exploding, Riot could leverage its existing infrastructure to ride the wave of this transformative tech cycle.
This isn't Riot's first pivot. The company's evolution from biotech to blockchain to crypto mining proves it's not afraid to chase new opportunities. And Starboard is pointing to Core Scientific (CORZ, Financial)—a fellow bitcoin miner turned AI infrastructure star—as the blueprint. Core Scientific, riding partnerships with Nvidia (NVDA, Financial)-backed CoreWeave, has seen its stock skyrocket 191% this year. Riot's CEO, Jason Les, has hinted that the company is open to similar deals, making this pivot not just plausible but potentially game-changing for its investors.
Timing is everything, and for Riot, the clock is ticking. Despite a strong crypto rally, Riot's stock has dropped 15% this year, weighed down by the bitcoin halving and missed M&A opportunities. With AI reshaping entire industries and hyperscale data centers becoming the backbone of this revolution, Starboard's plan could help Riot close the gap on competitors like Coinbase and MicroStrategy. Investors should keep a close eye on Riot's next move—this could be the company's big break into the future of tech infrastructure.
