Riot Platforms Under Activist Pressure to Accelerate AI Expansion
Riot Platforms is under mounting pressure from activist investor Starboard Value to rapidly expand beyond Bitcoin mining and aggressively monetize its massive Texas power footprint for artificial intelligence and high-performance computing data centers.
Key Takeaways
- Starboard Value is pressuring Riot to accelerate its AI and HPC data center expansion.
- Activists estimate 1.7 GW of Texas power could generate over $1.6B in annual EBITDA.
- Riot has already secured a $1B AMD lease and expanded its Rockdale footprint.
- The company still holds 18,005 BTC while funding expansion through partial sales.
- Earnings on February 23–24 could define the next phase of Riot’s transformation.
On February 18, 2026, Starboard, which holds a 3.4% stake in the company, sent a public letter urging management to “urgently seize” the AI infrastructure opportunity. The activist fund argues that Riot’s 1.7 gigawatts of secured power capacity in Texas is significantly undervalued and could transform the company’s earnings profile if deployed for AI and HPC tenants.
Valuation Debate Intensifies
Starboard estimates that Riot’s power portfolio could generate more than $1.6 billion in annual EBITDA if fully utilized for AI workloads. Based on that scenario, the firm believes Riot’s stock could trade between $23 and $53 per share – well above current levels.
Shares of Riot Platforms closed at $15.48 on February 19, up 5.67% on the day, giving the company a market capitalization of approximately $5.76 billion. The stock remains below its 52-week high of $23.94, but well above its yearly low of $6.19.
The activist investor also warned that failure to execute quickly could leave Riot vulnerable to acquisition by larger competitors seeking power-rich infrastructure for AI expansion.
Infrastructure Pivot Already Underway
Management has already begun repositioning the business. In January 2026, Riot announced a $1 billion data center lease agreement with Advanced Micro Devices at its Rockdale facility in Texas. The partnership marked one of the most significant steps yet in Riot’s evolution from a pure-play Bitcoin miner into a broader infrastructure provider.
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To support the transition, Riot completed a $96 million purchase of 200 additional acres at the Rockdale site. The acquisition was funded in part through the sale of approximately 1,080 Bitcoin. In total, Riot now controls more than 1,100 acres across the Texas Triangle, with plans to convert the full 700 megawatts of Rockdale capacity for data center tenants.
Bitcoin Operations Still Material
Despite the AI pivot, Riot remains a major Bitcoin miner. In December 2025, the company produced 460 BTC. In early January 2026, it sold 1,818 BTC for roughly $161.6 million to help finance land purchases and AI expansion initiatives.
The company currently holds approximately 18,005 BTC on its balance sheet, maintaining significant exposure to Bitcoin price movements even as it diversifies revenue streams.
Analyst Targets Climb Ahead of Earnings
Wall Street is beginning to factor in the AI narrative. Keefe, Bruyette & Woods recently raised its price target on Riot to $23 from $16, while Cantor Fitzgerald maintains a more bullish target of $31.
Investors now turn their attention to February 23–24, when Riot is scheduled to report Q4 and full-year 2025 results. The upcoming earnings release could provide greater clarity on how aggressively management intends to accelerate its shift into AI and HPC infrastructure – and whether it aligns with Starboard’s vision for unlocking the company’s Texas power assets.
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With over 6 years of experience in the world of financial markets and cryptocurrencies, Teodor Volkov provides in-depth analyses, up-to-date news, and strategic forecasts for investors and enthusiasts. His professionalism and sense of market trends make the information he shares reliable and valuable for everyone who wants to make informed decisions.
