Riot Platforms, Inc. RIOT
Riot's 1.7GW of powered Texas sites could generate $1.6bn of AI/HPC EBITDA and drive shares to $23-$53 if management urgently signs more hyperscaler deals like the AMD proof-of-concept.
Thesis
Starboard argues Riot Platforms has materially underperformed bitcoin-mining peers that have signed sizable AI/HPC data center deals, despite owning two of the most attractive powered sites in the country: Corsicana (1.0GW) and Rockdale (0.7GW) in ERCOT. The January 2026 AMD deal, at $1.24mm revenue and $1mm EBITDA per Critical-IT MW on just $3.6mm/MW of retrofit capex, validates the intrinsic value of Riot's sites but is only a small proof of concept. If Riot monetizes the remaining 1.4GW in line with recent TeraWulf, Cipher Mining, and Hut 8 precedents with Fluidstack/Google/AWS, AI/HPC alone could generate ~$1.6bn EBITDA. Applying 12.5x-20x multiples (a discount to 22x data-center REITs DLR/EQIX), that implies $23-$53 per share, excluding bitcoin, the Metron engineering business, and $1.2bn of NOLs. Starboard urges urgent execution, or consolidation.
SCQA
Riot Platforms is a bitcoin miner that a year ago pivoted toward AI/HPC data centers, sitting on 1.7GW of already-powered capacity at Corsicana (outside Dallas) and Rockdale (outside Austin) in ERCOT.
Riot's shares have materially lagged peers WULF, CORZ, HUT and CIFR that have already signed sizable hyperscaler leases; the January AMD deal was only a 25MW proof of concept in a market where power scarcity is worsening.
Sign additional sizable AI/HPC leases on the remaining 1.4GW urgently, prioritizing investment-grade hyperscaler tenants, complete the governance and cost transformation, and, failing that, explore consolidation of the Company.
Monetizing 1.4GW at peer precedent terms yields ~$1.6bn annual EBITDA; at 12.5x-20x (a discount to ~22x NTM data-center REIT multiples) the AI/HPC build-out alone implies $23-$53 per share.
The three reasons
- 1
Corsicana and Rockdale (1.7GW of already-powered capacity) are better than most peer AI/HPC sites
- 2
Monetizing the remaining 1.4GW at peer precedent terms could generate ~$1.6bn annual EBITDA
- 3
At 12.5x-20x EBITDA, AI/HPC value implies $23-$53 per share, dwarfing current market cap
Primary demands
- Urgently sign additional sizable AI/HPC data center leases on the remaining 1.4GW of capacity at Corsicana and Rockdale
- Prioritize investment-grade hyperscaler tenants over the highest headline lease rate
- Complete the governance and operational transformation to a best-in-class data center lessor
- Explore consolidation/sale if near-term execution proves challenging
KPIs cited
Pattern membership
Where this document fits across the library's 12 rhetorical / structural patterns.
Precedents cited
- TeraWulf (WULF) transactions with Fluidstack/Google
- Cipher Mining (CIFR) transactions with Fluidstack/Google and AWS
- Hut 8 (HUT) transaction with Fluidstack/Google
- Digital Realty (DLR) and Equinix (EQIX) trading multiples as REIT benchmark
Notable slides (3)
Notes
Five-page public letter from Peter Feld (Starboard) to Riot CEO Jason Les and Executive Chairman Benjamin Yi, cc'd to the Board. Written as a collaborative follow-up after ~1 year of engagement; tone is constructive rather than adversarial despite clear pressure to accelerate execution. Key visuals are the indexed peer-performance chart (p.1), AI/HPC EBITDA build-up table (p.3), and the share-price sensitivity table (p.4, $23.55-$52.60). No stake percentage disclosed in this document. Campaign phase is follow_up: Starboard references existing engagement, prior board additions, and the already-hired Chief Data Center Officer. Includes soft sale-of-company optionality ('exciting candidate for consolidation') as a fallback.